NSW Pay Tax on Gifts?

[Steve500]

Tax on Gifts: Say you have a friend, and they are rich. And they want to buy you a Ferrari ($300K) and $1million in cash transferred to your bank account, for your birthday eg 21st or 30th or 50th, or as a wedding gifts etc.

Do you have to pay tax on Assets or cash that have high value if you were given them as a gift, as opposed to being employed and earning the money yourself outright (which you do pay tax on income earnings in your tax return)?

 

[@thelawbundle]

Hi Steve,
As you probably know - when that amount of money is involved, it's not going to break the bank to get some decent taxation advice, including structural advice, from an accountant!

In short - you are unlikely to need to pay tax on the gifts themselves, but if they generate income (e.g interest on the cash) - then you will need to pay tax on that.

Hope that this helps.

Thanks.

 

[Steve500]

Hi Steve,
As you probably know - when that amount of money is involved, it's not going to break the bank to get some decent taxation advice, including structural advice, from an accountant!

In short - you are unlikely to need to pay tax on the gifts themselves, but if they generate income (e.g interest on the cash) - then you will need to pay tax on that.

Hope that this helps.

Thanks.

Hi there

Thanks for that. That's a good point you make about interest. Or if one generates any income made from the investment of the gift.