How can one save gift tax?
July 31, 2023 | 60,00 EUR | answered by Lina Walter
Dear Mr. Weber,
I am faced with the question of how to save gift tax and would like to seek your expertise. My grandparents want to gift me a larger sum of money to help me financially. However, I have concerns regarding gift tax and would like to know if there are ways to avoid or at least minimize it.
The current situation is as follows: my grandparents want to gift me a sum of 100,000 euros. Since I have little experience with tax matters, I am unsure how much gift tax would be due in this case and if there are legal ways to reduce it. I want to avoid losing a large part of the gift amount to taxes.
My concerns mainly lie in not knowing exactly how gift tax is calculated and if there are any tax exemptions or other regulations that can help me save on taxes. I would like to accept the gift from my grandparents without having to pay high taxes.
Therefore, my question to you is: what are the options to save or minimize gift tax? Are there any exemptions, tax deductions, or other tax planning opportunities that I can use in this case? I would be very grateful for your professional advice on this matter.
Thank you in advance for your support.
Sincerely,
Björn Weber
Dear Mr. Weber,
Thank you for your inquiry regarding gift tax and your concern about the tax burden on a larger monetary gift from your grandparents. It is understandable that you are thinking about how to minimize or even avoid gift tax in order to receive a larger portion of the gift amount. I will now provide you with some ways to save on gift tax.
First and foremost, it is important to know that in Germany, gifts are generally subject to taxation. The amount of gift tax depends on the relationship between the donor and the recipient, as well as the amount of the gift. In your case, where the gift is 100,000 euros, gift tax would apply.
However, there are exemptions that are taken into account when calculating gift tax. For grandchildren, for example, there is an exemption of 200,000 euros every 10 years. This means that you can receive gifts from your grandparents tax-free up to this amount. In your case, the entire amount of 100,000 euros would fall below the exemption threshold and therefore no gift tax would apply.
Another way to save on gift tax is by utilizing exemptions for spouses or civil partners. If you are married or in a registered civil partnership, you can use an additional exemption from your spouse or partner. This can help to minimize gift tax.
Furthermore, there are tax planning opportunities to save on gift tax. This includes lifetime gifts in the form of real estate or assets that are tax-advantaged. Additionally, spreading the gift over several years can help reduce gift tax.
It is advisable to seek advice from a tax advisor in such cases to fully utilize your individual tax saving options. I am also available for a personal consultation to help you save on gift tax.
I hope this information is helpful to you and answers your questions. If you require further information, please do not hesitate to contact me.
Best regards,
Lina Walter
