Park shared money in spouse's account.
March 3, 2011 | 30,00 EUR | answered by Dipl.BW/SB Ulrich Stiller
Gift (and gift tax) between spouses
A sum of money is transferred from a JOINT account of the spouses to a newly opened savings account of ONE spouse. Both spouses have full access to the new account. After a certain period of time (e.g. 6 months), the money is transferred back to the joint account. (Reason for the action: Higher interest rates on the newly opened account)
Questions:
- Could the tax office potentially see one or even two gift transactions in this process?
- Would gift tax be due, or would the gift tax exemption be used (or partially used)?
- What is the gift tax exemption amount?
- After what period of time would a new exemption be granted?
Dear inquirer,
thank you for your inquiry, which I would like to answer as follows based on your information and in the context of your situation within the framework of an initial consultation:
According to § 1 para. 1 no. 2 ErbStG in conjunction with § 7 para. 1 no. 1 ErbStG, every gratuitous transfer as a gift inter vivos is subject to gift tax to the extent that the recipient is enriched at the expense of the donor. The joint account of the spouses is a joint account. If nothing else is agreed between the spouses, according to § 430 BGB, the spouses as holders of a joint account are joint debtors in relation to each other in equal shares, i.e. 50% each.
If an amount is transferred from the joint account to the husband's own account, a gift exists to the extent of half the amount. The repayment by the husband to the joint account is again considered a gift. However, if there are regular deposits from the individual account to the joint account, this alone cannot be considered a gift, as regular deposits are usually used for common living expenses.
Each spouse has a tax-free allowance of 500,000 euros. According to § 14 para. 1 ErbStG, this tax-free allowance applies to gifts within a period of 10 years. For example, if there is an inheritance within 10 years due to the death of one spouse, the gifts will be included in the inheritance. After 10 years, the tax-free allowance of 500,000 euros is available again.
According to § 30 para. 1 ErbStG, any acquisition subject to inheritance or gift tax must be reported to the tax office responsible for inheritance tax within 3 months.
The situation is very complex. You should seek detailed advice, which is not possible within this forum.
I hope my explanations have been helpful to you.
Sincerely,
Ulrich Stiller
Tax Advisor/Diplom Business Economist
