Which forms need to be filled out for a donation?
September 10, 2023 | 50,00 EUR | answered by Bernd Schreiber
Dear tax advisor,
My name is Max Seiler and I have a question regarding gift tax. My grandmother is planning to gift me a larger sum of money to financially support me. I have never dealt with the topic of gifts and gift tax before and therefore I am unsure which forms I need to fill out.
The current situation is as follows: My grandmother wants to gift me an amount of 50,000 euros. I am married and have two children. My grandmother is already in retirement age and wants to ensure that the money flows into my family and helps us with larger purchases or financial difficulties.
My concerns mainly relate to the correct tax handling of the gift. I do not want to make any mistakes and pay unnecessarily high taxes. Therefore, it is important for me to know which forms I need to fill out and what information I need to provide.
So my question to you is: Which forms need to be filled out for a gift and what information needs to be included? Are there any specific regulations or thresholds that I should consider in order to save taxes? I want to ensure that the gift is optimally structured for tax purposes for me and my family.
Thank you in advance for your help and advice.
Best regards,
Max Seiler
Dear Mr. Seiler,
Thank you for your inquiry regarding gift tax. It is understandable that you may feel unsure when it comes to tax matters. I am here to assist you in properly handling your gift.
For a gift of 50,000 euros to you, you will need to submit a gift tax return to the tax office. You will need to use the form "Inheritance Tax Return" (Form 211) along with the asset statement form (Form 208). In the gift tax return, you must provide all relevant information, such as the value of the gift, your personal details, your grandmother's details, as well as information about your income and assets.
There are special tax-free allowances for gifts between grandparents and grandchildren. The current tax-free allowance is 200,000 euros every 10 years. This means that you can receive gifts from your grandmother tax-free up to 200,000 euros within a 10-year period. Since your grandmother only wants to gift you 50,000 euros, no gift tax will be due, and you can fully utilize the tax-free allowance.
It is important that you carefully fill out all relevant documents and submit them to the tax office on time to avoid possible tax evasion or penalties. If you are unsure whether you have provided all the necessary information correctly, I recommend seeking advice from a professional tax advisor.
I hope this information has been helpful to you. If you have any further questions or need assistance with the handling of your gift, please do not hesitate to contact me.
Best regards,
Bernd Schreiber
Tax Advisor
