A donation from the closest family members may be exempt from tax. However, one must remember about the formal obligations, because otherwise the tax office will gladly charge a tribute. As reported by “Rzeczpospolita”, the latest tax interpretations on this topic leave no illusions.
According to the regulations, a gift from a close relative is exempt from tax. However, if it exceeds the amount tax-free amountcurrently the threshold is PLN 36,120, it must be reported to the tax office using the SD-Z2 form within six months. The value of the property received from this one person in the last five years must be taken into account.
Gift Tax: The Tax Office Seizes on Every Pretext
The condition for exemption is that the money is deposited into the beneficiary's account or sent by post.
– Unfortunately, many people still forget about it. And the tax authorities seize on every pretext to question the relief – says Kamil Wielewicki, tax advisor, vice-president of the Mentzen law firm, in an interview with “Rz”.
The daily points out that the latest interpretations regarding donations from parents (for a flat, a car and a loan repayment). In each of them, the tax office questioned the relief for formal reasons. In its opinion, the money was transferred in breach of the terms of the preferences.
Money for an apartment or car
The woman received money from her father for an apartment. She has a gift agreement, she transferred the funds to the developer, she filed a declaration with the tax office. However, the tax office did not like the fact that she received the money in hand and only later paid it into her account.
A negative interpretation was also given to a woman who was supported by her mother in repaying a housing loan, and the money from her mother was transferred to a technical account.
It was similar in the case of a gift for a car. The parents paid the money not into their daughter's account, but directly into the seller's account. He wanted the money in euros, and the daughter did not have a currency account.
– In order to avoid unnecessary disputes with the tax office, it is worth remembering its requirements. The recipient should therefore ensure that the money is first transferred to his account – explains Kamil Wielewicki.
Main image source: Kamil Zajaczkowski / Shutterstock