Notify the tax office of the donation?
January 20, 2011 | 50,00 EUR | answered by Dipl.BW/SB Ulrich Stiller
Hello!
We have the following situation:
- My wife's mother is a widow and therefore the sole owner of a house
- The house has been sold
- The purchase price has been paid by the buyer
- The purchase price amounting to €110,000 will be transferred by our house bank to a savings account. The sole account holder of this savings account is my wife
- The money will be used to partially pay off a real estate loan for our new house
For this "gift transaction", we did not have a notarial deed drawn up, as my mother-in-law did not want this.
In this case, is it necessary to inform the tax office or is this unnecessary due to the limit of €400,000?
Is there anything else to be particularly aware of?
Dear inquirer,
Thank you for your inquiry, which I would like to answer based on the information provided and in the context of your situation as follows:
The gift is subject to inheritance tax law (ErbStG) and must be reported in your case.
The report must be made in writing to the competent inheritance tax office (§ 30 para. 1 ErbStG).
Only if the gift was notarized, no report is required (§ 30 para. 3 ErbStG). Since there is no notarial deed regarding the gift, the exception does not apply.
According to § 30 para. 4 ErbStG, the report must contain the following information:
1.
First and last name, profession, residence of the deceased or donor and the recipient;
2.
Date and place of death of the deceased or the time of the gift execution;
3.
Object and value of the acquisition;
4.
Legal basis of the acquisition such as statutory inheritance, legacy, endowment;
5.
Personal relationship of the recipient to the deceased or donor such as kinship, affinity, employment relationship;
6.
Previous gifts from the deceased or donor to the recipient in terms of type, value, and timing of each gift.
I hope I was able to assist you.
Kind regards,
Ulrich Stiller
Tax consultant/Diploma in Business Administration.
