If my father sells his 9 acre property to a developer for $1.7 million and spends $700,000 on his new home (downsizes). If he places $200,000 in his super to account for him losing the pension. If he ‘gifts’ $200,000 to each of his 4 children, will he or his children required to pay Gift Tax?
Regards,
Peter
That is an accountant question
This is a legal question
There is no gift tax in Australia. The gift to the children will be tax free. But this will not effect the CGT on the disposal on the property.
But before he does this he should seek legal advice as there are wide ranging consequences. Depending on the circumstances he may be better off lending the children the money, interest free perhaps.
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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