Australia's #1 for Law

Join 11,000+ Australians. Ask a question, respond to a question and better understand the law today!

NSW Pay Tax on Gifts?

Discussion in 'Other/General Law Forum' started by Steve500, 26 July 2015.

  1. Steve500

    Steve500 Well-Known Member

    Joined:
    10 March 2015
    Messages:
    60
    Likes Received:
    3
    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)?
     
  2. @thelawbundle

    @thelawbundle Well-Known Member

    Joined:
    27 October 2014
    Messages:
    38
    Likes Received:
    11
    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.
     
    Stop hovering to collapse... Click to collapse... Hover to expand... Click to expand...
  3. Steve500

    Steve500 Well-Known Member

    Joined:
    10 March 2015
    Messages:
    60
    Likes Received:
    3
    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.
     

Share This Page

Loading...