Gifts and tax
Gifts and taxation is a difficult matter for many individuals, while there are so many opportunities. It goes without saying that you do not file an incorrect tax declaration, apply prohibited tax constructions or keep a sloppy administration. When you delve into tax matters, or receive expert tax advice on tax regulations and laws regarding gifts, there are important benefits to be gained and you are protected against sanctions, fines, legal proceedings and the like.
Private individuals sometimes need specialist knowledge, for example for calculating taxes, clarity in the tax consequences of gifts, inheritance or divorce, making real estate financially transparent, and the like. AGA Fiscalisten has the expertise and experience to fully clarify complex financial issues. Our reliable expert tax specialists, who all have years of experience, see every opportunity. All our tax specialists have years of experience and the mr. title.
Gift and gift tax: the inheritance law
The inheritance law has two types of taxes. The inheritance tax and gift tax. A tax return must be filed for both taxes. For example, for receiving a gift.
What is a gift?
Something you get of value without consideration is a gift. For example, a family member who gives a sum of money to another family member, or a painting that you get for Christmas. So something is given without anything being expected in return. For tax purposes, this means that the recipient of the gift becomes richer, and the giver of the gift becomes poorer. Selling a house too cheaply is also a gift. Not only money, but also items of value such as art, jewelry, a car and the like can be donated or received as a gift.
Do I have to file a gift tax declaration? Gift tax exemption?
In the case of a gift, gift tax usually has to be paid. However, there are certain exemptions. No gift tax has to be paid on an exemption. The following exemptions exist:
- General gift exemption
Everyone can donate a maximum of € 3,244 without paying gift tax;
- Gift exemption from parents to children
Parents can give their children a maximum of € 6.0.35 once a year without having to pay gift tax;
- Gift exemption parents to children 18-40y one-off
There is a gift exemption from parents to children between the ages of 18 and 40 up to a maximum of € 28,947 which can be used once.
This exemption from gift tax does come with some conditions. Your parents may not have made the annual tax-free gift of € 6,035 in that year. And in addition, you may not have made the tax-free gift for a house or expensive study. A choice will have to be made between 1 of these tax-free gifts that are possible.
- Gift exemption for expensive study parents to children
If the amount of a gift is fully used for an education and the education itself costs more than € 20,000 per year, outside the cost of living, then the gift exemption for parents to their children is a maximum of € 60,928
This gift is also tax-free only if no tax-free gift of € 28,947 has been made that all parents can donate once to their children. And no tax-free gift may have been given for the purchase of a house and no annual tax-free gift of € 6,035,- has been given.
- Gift exemption home parents to children
If the amount of a gift is used entirely for the purchase of a home, then the gift exemption for parents to their children is a maximum of € 28,947,-. This only applies to children between the ages of 18 and 40, and this amount has been spent in full on the property within 2 years of receiving the gift.
This gift is also subject to the condition that it is only tax-free if no other tax-free gift options have been used. This concerns the of the one-off gift off €28,947,-, the gift for the costs of an expensive study or the annual tax-free gift of €6,035,-.
It is important to know that the tax authorities see both parents as 1 and the same donor. It is therefore not possible to receive the maximum tax-free gift from both the father and the mother.
There is also an exemption from gift tax for certain charities. If a charity is qualified as an ANBI (public benefit intended institution), an SBBI (social interest institution) or support SBBI, they do not have to pay tax on gifts. An SBBI must always submit a declaration to qualify for this exemption, an ANBI or support SBBI do not have this obligation to receive the exemption.
Gifts to avoid inheritance tax
As an advance on an inheritance, gifts are more often given. This way a gift can reduce the amount of inheritance. Therefore less inheritance tax is paid. All gifts that are given in the 180 days prior to the death are considered part of the inheritance by the tax authorities. Inheritance tax still has to be paid on these gifts.
Questions from private individuals about gift tax
Below are questions that we regularly receive from private individuals
- When is a gift fiscally interesting?
- What exemptions are there for gift taxation?
- How much gift tax do I have to pay?
- How do I determine the value of a gift?
- What is a paper gift?
- What about the exclusion clause?
- What should I do if I want to donate more than is possible tax-free?
- When do I have to file a gift tax return?
- What if I don't file a gift tax return or too late?
- What if I receive a gift from abroad?
Our tax specialists are asked many other tax questions and issues than the above. You can also submit all these questions to us. We provide clarity and solve your tax issue or question.
Why financial advice from AGA Fiscalisten?
AGA Fiscalisten stands for high-quality expert tax advice. All our tax specialists are senior tax specialists, have years of tax experience, and have graduated from the university in tax law and hold the title "mr.".
A (senior) tax specialist specializes in tax law while a tax advisor has only completed tax courses. A tax advisor has much less knowledge than a tax specialist and often makes mistakes with potentially significant financial consequences. It is wise not to settle for a non-qualified tax advisor, but to engage an expert senior tax specialist. This way you avoid problems, fines or procedures and you do not miss out on tax benefits due to advice that is not sufficiently expert.
High quality tax specialist; Master title mr. and years of experience
All our tax specialists have years of tax experience and the "mr." title. The most recent developments and changes concern taxation and all relevant legislation is studied and discussed by our tax specialists. This gives us the opportunity to clarify all the problems and issues about taxation. We achieve the best possible result for our customers. Tax advice, tax returns, financial advice, legal advice or discussion partner, AGA Fiscalisten will arrange it for you!
Contact AGA Fiscalisten
The tax specialists of AGA Fiscalisten can do a lot for you, from an answer or advice to your tax questions to guidance throughout the entire process. If you have any questions or issues and would like high-quality tax advice, please contact one of our expert experienced tax specialists for an intake interview free of charge and without obligation.
NEED TAX ADVICE? Call: 040-8489888 1st free and non-binding intake interview. Available by phone: Monday to Friday between 09.00h and 20.00h) We can also be reached by e-mail: info@agafiscalisten.nl or via the contact form on the right side of our website.
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