Tax Facts - Gifting

A gift is something given when:

  • Nothing is received in return; or

  • Something is received in return, but its value is less than the value of the property given.

 

If something of lesser value is given in return for a gift, the value of the gift is the difference between the two values.

In the context of trusts, these items can all be gifts:

  • Transfers of any items (for example, company shares or land).

  • Any form of payment.

  • Creation of a trust.

  • A forgiveness or reduction of debt.

  • Allowing a debt to remain outstanding so that it can't be collected by normal legal action.

 

If you propose to make a gift to a trust, please contact us to discuss the implications.  It is important to take into consideration what the trust, and the gifts to the trust are designed to achieve as part of a long-term strategy.

 

The government abolished gift duty for dispositions of property made on or after 1 October 2011.  

 

For gift duty on any gifts made before 1 October 2011, the IRD's guide on the IRD  website is helpful.

 

Please be aware that there is a $6,000 annual gifting limit for rest home subsidy purposes.

 

For more information on gifting please give us a call.

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AUCKLAND

NEW ZEALAND

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Tel: 0064-21-211 3734​

Email: info@prospernzca.com

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