Receiving a donation from a loved one is a great gift or a good boost. But be careful not to exceed a certain amount so as not to have to pay taxes.
Tax filing season is coming to an end. If you haven’t completed yours on time, here’s how to do it. Every year, many French people look for tips to reduce the amount they have to pay. Divorced women have received good news from the administration on this side. We also know that donations made to associations can have an influence on your income tax. But what about donations between relatives ?
If there is an ideal age to do one and reduce these taxes as much as possible, however, you must be careful about how you go about it and the amount of your donation. It may seem trivial to you to receive money from your grandparents for your birthday or from your parents in the event of a hard time. But that’s not the case, and here’s why.
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What do you need to know about donations between relatives?
Donations between relatives should not exceed a certain amount if you do not want to have to pay taxes on them. We call them of the “customary presents”a term that “allows you to escape the tax” precise The Net Journal. But if the amount is too large, then it is called A “Don” and the latter must be declared with your income tax. This means that you may eventually have to pay taxes on the gift you received.
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According to the Civil Code, we can consider as a customary gift a sum depending on the date it was made or the wealth of the donor. So unclear. A rule of 1 or 2% of the donor’s income and assets is also mentioned, but it is not listed anywhere. Only a limited proportion of this heritage should be donated. According to the Ministry of Economy and Finance, “no maximum thresholdwhether in percentage or in absolute value, making it possible to distinguish customary gifts and other donations”.
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How to go about avoiding taxes and inheritance duties?
Concerning the date of the donation, it is important. Because you can justify the amount received if the operation was carried out on the day of a birthday, a wedding, a civil partnership, a religious celebration, a diploma, etc. Remember to clearly specify the event in question in the wording of your bank transfer to help justify such a gift. The tax authorities could look into a suspicious movement on your account.
Also be careful inheritance tax. If you received a gift that was not declared, it will not be too late after the donor’s death. An heir will be able to make a claim against you, there is no no prescription. It is therefore better to declare your customary gifts to have peace of mind. Good to know: in the case of a donation, a government site, servicepublic.frsuggests that you do a simulation to determine if you will have any fees to pay.
Editor for Aufeminin since 2022, Charlotte is passionate about cinema, French and international, and a fortune reader. Curious about everything, she talks as much about personalities as…
