In 1999 my mum finally inherited her rightful due inheritence after a lenghthy dispute…..We lived together and planned to buy together but unfortunatley she passed away rather suddenly. She was of sound mind long enough to give to her two daughters equal share of her money. We both received $xxk and have not declared it anywhere. I used mine for a home loan deposit to provide for her aswell when I applied for it. (long story) I purchased, but she went and died on me before settlement and move in……Where do I stand with tax and the ATO..It is soely my debt now……I have been living ,looking over my shoulder for the last 8 years for the ATO to come knocking…Am I right in thinking so?…..btw I have always lodged a tax return and never heard anything other than intrest on the money I received 3 years later. but no gifting tax…..Cheers ..should I still be waiting some 8 years later???????
Hi Jane
Why not ring the ATO or ask an accountant. I didn't think that Australia had an 'Inheritance Tax' I thought it was treated like a lottery win you only pay tax on the interest it earns etc.
Eight years is a long time to worry about something that might never eventuate. When in doubt ask, the truth will set you free:)
Ros
Gifts are not taxable.
Hi Jane,
I really do feel for you, 8 years is a long time to be looking over your shoulder. Rest assured that gifts are not taxable, and that you have not been engaged in tax evasion. You have quite rightly declared the interest earned on the money you received, and that is all that is required.
My Father passed away 2 years ago- We did not have to declare the proceeds from the distribution of his estate- the only thing we did have to declare was income we received from a payout from the insurance benefit on his superfund.
I was some how under the impression for some reason that as the giver, my mum would have a gift tax to pay ( as she was living when she gave it away to us, and it was not an inheritance to us. It was well over 10k which I thought was the threshold for giving away in any single taxable year period without incurring a gifting tax. And upon her death, that would make myself and sister liable for any of her debts……So I was not going to be shocked if the ATO said hey " beneficiary of so and so YOU owe us money" … I will give them a call and finally settle it ….. Thanks everyone for the help.
there is no gift tax in Australia and you can't be liable for the debts of others – generally. I Think your safe
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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