What happens if the tax-free allowance is exceeded?
February 8, 2023 | 50,00 EUR | answered by Bernd Schreiber
Dear tax advisor,
I have a question regarding gift tax and hope that you can help me. My situation is as follows: Some time ago, my parents gave me a large sum of money for which I paid gift tax. Now I have learned that the exemption for gifts from parents to children has been exceeded. What does this mean for me and what are the consequences if the exemption has been exceeded?
I am worried that I may now have to pay additional taxes or that there may be further legal problems. Is it possible to correct the amount retrospectively or are there other ways to optimize the gift tax? What steps do you recommend I take to clarify the situation and avoid any tax repayments?
I thank you in advance for your support and advice on this matter.
Best regards,
Ulrike Schulze
Dear Mrs. Schulze,
Thank you for your question regarding gift tax. It is understandable that you are concerned if the exemption limit for gifts from parents to children has been exceeded. In such cases, there are indeed consequences, which I will explain to you below.
If the exemption limit has been exceeded, this means that the amount of the gift exceeding the limit is subject to gift tax. In your case, this means that you will have to pay gift tax on the amount that exceeds the exemption limit. Gift tax is calculated based on the amount of the gift and the relationship between the donor and the recipient. Therefore, it is important to know the exact amount of the gift and the exemption limit in order to calculate the gift tax correctly.
Unfortunately, it is not possible to retrospectively adjust the amount to optimize the gift tax. However, there are ways to minimize or avoid gift tax. One option is to split gifts and spread them over several years to avoid exceeding the exemption limit. Gifts can also be made within tax-optimized models, such as gifts with reservation of usufruct, to reduce the tax burden.
To clarify the situation and avoid potential tax payments, I recommend that you consult with an experienced tax advisor. They can analyze your individual situation, provide you with the best course of action, and support you in optimizing your gift tax. It is important to have all relevant documents and information ready to receive accurate advice.
I hope that I have been able to assist you with this information. If you have any further questions or require a more detailed consultation, I am at your disposal.
Best regards,
Bernd Schreiber, Tax Advisor
