Gift tax - 60K

[Josvill2010]

In order to avoid to pay 25% CAT of a gift of 60K from a 3rd party a friend of mine is thinking that the gift should be divided between her boyfriend, his mother, and his father. That way all falls under the 21K threshold.

Does this look right to you? Any other suggestions, questions?

Thanks,
jose

 

[dereko1969]

It would be regarded as a deliberate attempt to evade taxation and would fall foul of section 811 of the TCA in my opinion.

 

[Bonzo]

http://www.citizensinformation.ie/c...ax/tax/capital-taxes/capital-acquisitions-tax

These figures are normally updated in late January of each year, and then apply to the entire tax year. Yes just checked not changing that much follow link below

http://www.charteredaccountants.ie/...tal-Acquisitions-Tax---2010-Group-Thresholds/

 

[Gervan]

If the donor is happy to give such gifts to these 4 people, fine, but if you then want them to pass the money over to you, you are back over the threshold again.

 

[Josvill2010]

Donor is happy.
She is thinking to put down a deposit for an appartment with that money and avoiding any 25% CAT by her boyfriend getting that money through his parents -all free of CAT.

 

[mathepac]

This sounds like a tax evasion strategem to me and tax evasion is illegal. AAM does not condone, support or encourage tax evasion or other illegal activities.

 

[Graham_07]

Donor is happy.
She is thinking to put down a deposit for an appartment with that money and avoiding any 25% CAT by her boyfriend getting that money through his parents -all free of CAT.

Your use of this word is incorrect in the circumstances you described. The word evasion is more correct, and as other posters have said this is illegal and not supported on AAM.

 

[asdfg]

The treshold for each catagory can only be used once. So if they get ever get any other gifts from strangers apart from the annual exemption they will have to pay tax on the entire gift.

In 2010 - Donor A gifts 20,000 Exemption 20740 No gift tax payable
In 2012 - Donor B gifts 10,000 Expemption 22,000

Tax as follows
Total Gifts 30,000
Exemption 22,000

Tax payable on 8,000 at 25%

 

[coast4]

Can a daughter gift cash to a parent?What are the tax implications and thresholds please?

 

[Graham_07]

Can a daughter gift cash to a parent?What are the tax implications and thresholds please?

€41,481 is the amount after which CAT is payable. see here under Class B In certain cases inheritances by parent from child can qualify for the higher Class A threshold.

Bear in mind that is the aggregate of all gifts/inheritances under Class B so if the parent had already received, say, €20,000 inheritance from a brother 2 years ago then there is only €21,481 left in that threshold for gifts/inheritances from other class B donors.