Gifts between close relatives are tax free or taxable?

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Giving between close relatives has recently become popular. Is such a gift not taxed or is it paid in this situation? This is something to think about before making a deal. After all, payments, if any, can be expensive. And then there would actually be little point in giving. Especially when it comes to needy or dysfunctional families.

Introduction

But first, let's figure out what a donation agreement is (between close relatives and not only)? What is this about? And why does the question of taxes arise? The thing is that a donation agreement is a kind of agreement concluded on a voluntary basis. It serves specifically to transfer some kind of real estate or any other objects of ownership from one person toto another. Usually these are cars and apartments. A donation is made between close relatives. Is this process tax-free or taxable? The question is not so difficult. Please note that the owner has the right to donate what he has to any person. It can be not only relatives (close or distant), but also just strangers. Each case has its own characteristics.

How much to pay?

A donation agreement between close relatives plays an important role for many. In particular, due to the fact that real estate is not divided under the appropriate agreement (even if people are married). That is, if parents give a married child, for example, an apartment, you can not be afraid that after a divorce it will be jointly acquired property. Giving is a kind of confidence in the future.

True, this service is not free. A gift of real estate between close relatives, like any other similar agreement, requires a certain fee. And while we are not talking about taxes, but about the so-called state duty. Without it, the transaction is impossible. You simply will not accept documents to transfer something to the property of family members.

How much should I pay when signing a donation? First, the current owner (that is, the one who will donate) is involved in the payment. Secondly, the amount is fixed. And in 2016 it is 2,000 rubles. It turns out that the donation will cost at least 2 thousand for the donor. Re-registration (change) of the contract costs 200rubles. This is also a fee, but it is no longer mandatory. And it is introduced only when it is necessary to correct some points of the current agreement. Gifts between close relatives are tax free or required? We'll talk about this later.

Recipients: who are they?

To fully answer the question, you need to clearly understand what kind of people we are talking about. After all, relatives are not all relatives. And this factor does not depend on your relationships in the family. The legislation provides for a clear definition of who belongs to this category of persons, and how a gift can be made between close relatives. Is tax paid or not? More on this later. In the meantime, it’s worth figuring out what category of people we are talking about.

There aren't really that many close relatives. These include both blood and "consolidated" family members. Who exactly is in here? This is:

• spouses;
• children;
• parents;
• grandparents;
• brothers and sisters;
• grandchildren.

That's it. The rest are distant cousins. Even aunts and uncles, cousins and nephews will fall into this category. And for them, the donation agreement will have its own characteristics. And close relatives, to be honest, are a little easier in this regard. The main problem here is the collection of documents confirming kinship. But the conclusion itself takes place without unnecessary problems and questions.

Kin and taxes

Donation between close relatives is not taxed or is it needed?Frankly, according to modern laws, so far it does not exist. That is, there is a corresponding payment when drawing up and concluding a deed of gift, but does not apply to close relatives. It turns out that parents / adoptive parents, children, grandchildren and grandparents, even if they are not relatives, brothers and sisters, including adopted and half-parents, as well as spouses (an extremely rare option) can give property to each other without any problems and nothing don't pay. Excluding government tax. The main thing is to have proof of close relationship.

Giving money between close relatives, by the way, is also not subject to any tax. According to the legislation of the Russian Federation, the family members listed above are completely exempt from any payments related to donations. Yes, after the transfer of property (for example, real estate) you will have to pay for it. But these are completely different taxes. In this situation, this is a payment for oneself, and not for a donation.

Distant

Thus, you can make a gift to a close relative. As you can see, no taxes are paid. There is only a state fee for the transaction in the prescribed amount, and it changes annually. What about the rest of the family?

And no one exempts them from paying taxes. And, of course, the fee must also be paid in full. In principle, nothing surprising - most often donations are concluded precisely between close relatives. Not always family members have a chance to pay taxes. Especially considering the fact that such a relationship exists to help each other. In practice, a donation agreement is a kind of and disinterested help.

Distant relatives pay the same taxes as complete strangers. That is, in the amount of 13% of the value of the "gift". Income from a gift is almost always subject to payments. The exception is the transfer of money. But in practice, the donation of finance is not fixed in any way. Especially when the transfer amount is too small.

If a notification has arrived

Gifts between close relatives are not taxed - this is already clear. But it often turns out that it is precisely when such transactions are made that the donee receives appropriate notifications from the tax authorities. What to do?

Don't panic and just ignore these notices. Close relatives do not have to pay gift tax. And notifications to facilitate the task are sent to everyone who signed the relevant agreement. For authorities, this is work on the principle of "figure it out for yourself." Do not panic and do not rush to get cash out of your pocket. A declaration is also not required. This is such an intricate process - a gift to a relative. There is no tax on close family relationships, even if there is a notice to that effect. Remember this.