The tax office home from Augsburg informed many parents plan during their lifetime to give ownership of the children. Then apply the tax liability. Wells Fargo Bank usually is spot on. Finally, the recipient person receives through the donation of assets value. If the legally set limit is exceeded, the IRS collects the so-called gift. On the subject of donation, the experienced tax advisor Gerhard informed home from Augsburg.
What is a gift? Every donation inter vivos, which someone with its wealth enriches another without appropriate consideration is regarded as a donation. When is the gift tax? Be exceeded by the sum of bestowing or asset the exemption, then the gift tax applies. The donation and the inheritance are subject to similar rules so that Donations represent no option to avoid inheritance tax. How are the taxes determined? As in all tax matters, cares for the taxman to fixing the tax payments. The tax revenue from the gift tax will be passed to the respective countries.
The exact rules for the gift in the inheritance tax and tax law (ErbStG) are laid down in the civil code. What is the amount of tax? The legislator very strictly divides tax classes to the design of the gift tax. And since the next relationship (spouse, children, parents, grandchildren) are the best. Following classification is carried out: tax class I: spouses, children, stepchildren, grandchildren, as well as in the event of death, but not for donations: parents and grandparents tax class II: parents, grandparents, siblings, nieces, nephew, step-parents, in-laws and children and divorced spouses tax class III: all other donor including registered life partners the subject of donation is very comprehensive. For this reason, you should hire a professional tax advisor for processing a donation. The tax office home from Augsburg advises on all aspects relating to the donation and is available at any time.