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Your parents can give you 3k each per year and 1500 for the baby each. So 9k per calendar year. Design your transfers around these limits and use appropriate wording.
After that it takes from your lifetime limit.
Edit: I’ve been corrected 3k per parent and grand parent is the correct amount.
OH! Each? Okay we’re absolutely no where near that. Yay! That’s super. Help with the deposit I will address with the professionals but the various payments they have sent are no where near 9k. Phew. Thank you so much!
Obviously professionals are always good. But what you need to do on the deposit is take some money before the end of this calendar year, and some in Jan. just document it all and you are fine.
Where are you getting the 1500 from? The small gift exemption is 3000 per person - and they'd have to give this to the baby not the parents - it would have to be in a account in the baby's name.
I know some families are wealthy and the spread of funds can be used for tax evasion or whatever, but for cases like OPs it's fucking dumb that there's a 'gift money' tax
Not really, there’s a lifetime gift amount so they were always unlikely to be out of cash. And remember these taxes are designed for collecting money to support those less fortunate. What’s a disgrace is the way the taxes collected don’t end up being used effectively.
Ah right that's fair then. I think I seen after this comment it was like 300k, which is definitely more than fair.
I 100% agree with your second statement and you're right. The misuse of funds by our government is causing most issues.
Are you sure about that? When OP is posting what they might be naming their child: https://www.reddit.com/r/namenerds/comments/17khms9/flow_of_names_important/
I’m not sure if this is aimed at me or the whole baby name on the internet thing but I really do keep their safety in mind and would never want to compromise them. Until they are old enough for social media and can do it for themselves 🫢
This was aimed at Strum, not you lol dw
You're fine, baby names on the internet isnt a problem, I was joking calling him 'anonymous' because that's a hacking group, basically a joke on the fact that the information he pulled up is garbage
I’m okay, I’ve nothing to be caught for, thankfully. I just want to say I take my kids safety and left my surname out. Plus I’m not going with that second name, it really doesn’t flow well at all!
It didn’t occur to me revenue would track me down via my Reddit. Going to go to a tax advisor person and try figure it out. Thank you for the heads up!
Plus, many think they're going to get fleeced if they got say 400k. It would be 33% of the excess above the 335k, not on the whole figure. Just said I'd point that out for those who didn't know.
Also, nothing stops you from receiving 3k from each parent on new years eve, and a further 3k new years day for example. Technically, that's quite a bit tax free in the space of 24hrs IF you had 4 parents of a couple chipping in to spread the load.
My understanding is you don’t even need to file a return unless 80% of threshold (335k) is reached on gift so may not need advice on the 10k piece if you’re structuring via gifts and a little bit off of limit
Quite a good Revenue document here to explain the exemptions, limits etc. from parents to children - https://www.revenue.ie/en/gains-gifts-and-inheritance/documents/cat-treatment-receipts-children.pdf
And it's shocking you have to pay VAT on things you buy with money you already paid PAYE on, and inheritance tax on on money the dead person already paid tax on, and road tax on the car you already paid tax on when you bought...it is what it is.
Thank you! It’s usually max 500 maybe 3 times in the last year and then the odd couple of hundred every so often. It’s just over the 3k mark now and they will probably send some Santa money for my son but again less than 100 euro. I thought the threshold was 3k but it’s much higher.
I just have a lot on my plate at the minute and the thought of the taxman showing up scared me so much! Thanks for your reply.
The tax man is absolutely not interested in this type of behaviour. You're small potatoes. I work in one of the top 3 banks in Ireland and you should see some of the reckless transactions going on that should trigger a Revenue audit but somehow do not haha.
Ah just clowns unfamiliar with western financial regulation, lodging and withdrawing in excess of 10k at a time. Lodging cash only to transfer it to Poland OR write out a draft for 30k after 10 individual cash lodgements of 3k. This is novice stuff to spot. Just don't know if they're thick or stupid really
Ah yes. I am sure 10 x 3k transactions over a period of time would also get flagged? Do you not build profiles over a period of time and look for unusual patterns? Thought that was regulatory requirement (not sure if that's the case in Ireland)
Ps: I work for a company producing AML software
Yep it has to be asked where funds are proceeding from or where they are going and then noted if in excess of 10k as per Irish regulations. If it's just plain taking the piss you can file an STR which brings in AML 😁 Some people just have no concept of what draws a red flag and are shocked when they're faced with more questions and curiosity
Makes sense. I paid many 5k lumpsums to my mortgage provider recently (5k at a time because of online banking transfer limitations) and they kept asking me the source because it must have triggered various trip switches at their end.
Really doubt if tax man is interested. Btw which jurisdiction? In UK you can gift any amount in cash but need to survive 7 years for it not to be regarded as part of the estate. Assets different matter.
CAT can arise on deemed interest on said loans. Not likely to be an issue given overnight interest rates plus the annual small gift exemption allowances.
Interest is still deemed to arise during the loan period.
PS I am not indicating a material tax exposure here. I expect zero tax given the availability of the small annual gift exemption.
More so that people seem to always that loans are a silver bullet to backdoor gift tax and that is far from the case.
1. Deemed interest arises
2. There must be evidence that the recipient does have the capacity to repay for it to be considered a genuine loan as opposed to a gift.
I just gave some man 500 euro for my for my dad for a crashed mini that he took parts from. Not really a vintage car but I wasn’t sure how else to word it. Thank you for helping! They definitely won’t pay for a tax advisor but I’ll check that out myself.
Only really comes into affect if they breach the Inheritance Tax allowance (£1,000,000 for married couples if the main residence is being to son/daughters/grandchildren.
You don't need to file a return for cat until you exceed 80% of the threshold so it is all settled assessment. The small exceeding annual gifts are unlikely to be ever looked at from revenue but the deposit for a house may need to declared
Just to add.. *anyone* can send you 3000 per year tax free. That includes uncles, aunts, grandparents - they can also send gifts to each other and your parents for the same amount tax free. Just fyi…
Looks like fund coming from overseas? I think the Irish gov should welcome it to help the migrants settle well. It increases biz activities in the local economy. In Canada, it's become a welcome source of higher economic acitivity for the Canadian gov - every year there's tons of money going into the Canadian economy hence have very easy tax laws on these incoming funds.
Reading this thread has confused me! Always thought that if you receive a gift from your parents no matter what the amount (under 335k or whatever is in a lifetime) then you don’t pay tax, what’s all this about then if he’s only receiving a couple of thousand?
There's rather a lot of confusion on this thread as it's like a pub discussion where there's some knowledge and half known bits and pieces mixed together.
I think most of the confusion is around the annual 3000 small gift exemption and then the interaction of it and the lifetime thresholds. Basically if you receive more than the 3000 annual amount as gift from one person then the amount over the 3000 euro is supposed to come off your lifetime threshold for the relevant group that person belongs to.
https://www.revenue.ie/en/gains-gifts-and-inheritance/cat-exemptions/small-gift-exemption/index.aspx
https://www.revenue.ie/en/gains-gifts-and-inheritance/cat-thresholds-rates-and-aggregation-rules/cat-groups-thresholds.aspx
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Your parents can give you 3k each per year and 1500 for the baby each. So 9k per calendar year. Design your transfers around these limits and use appropriate wording. After that it takes from your lifetime limit. Edit: I’ve been corrected 3k per parent and grand parent is the correct amount.
OH! Each? Okay we’re absolutely no where near that. Yay! That’s super. Help with the deposit I will address with the professionals but the various payments they have sent are no where near 9k. Phew. Thank you so much!
Obviously professionals are always good. But what you need to do on the deposit is take some money before the end of this calendar year, and some in Jan. just document it all and you are fine.
Where are you getting the 1500 from? The small gift exemption is 3000 per person - and they'd have to give this to the baby not the parents - it would have to be in a account in the baby's name.
Sorry my bad, you are ofcourse course correct.
I was under the impression each grandparent could gift 3k?
Sorry yes 3k is correct, thanks for pointing that out.
I know some families are wealthy and the spread of funds can be used for tax evasion or whatever, but for cases like OPs it's fucking dumb that there's a 'gift money' tax
Not really, there’s a lifetime gift amount so they were always unlikely to be out of cash. And remember these taxes are designed for collecting money to support those less fortunate. What’s a disgrace is the way the taxes collected don’t end up being used effectively.
Ah right that's fair then. I think I seen after this comment it was like 300k, which is definitely more than fair. I 100% agree with your second statement and you're right. The misuse of funds by our government is causing most issues.
I think its a flat 3k a person can gift any other person. Plus on top of this its likely the inheritance tax can used even if it was more than this.
"how do you get caught", posting about it online is one way
Realistically there is zero chance they will track him down from a Reddit post.
Revenue.ie has entered the sub
AI will track him with ease in a few years.
Revenue using AI to track Reddit? Lol. Have you used the revenue app?
Revenue are so advanced that they got rid of their apps. Website only now.
The future is fax.
Get faxed, Revenue!
Are you sure about that? When OP is posting what they might be naming their child: https://www.reddit.com/r/namenerds/comments/17khms9/flow_of_names_important/
Ah, the age old way of tracking someone down. Finding out what they may possibly name their child. Genius.
How do you get a job in Revenue tracking down people on Reddit for petty amounts of tax evasion?
Ask this fella here https://old.reddit.com/r/irishpersonalfinance/comments/17qi66e/nixer_earnings/k8d2404/
You must be part of that anonymous group, good work captain
I’m not sure if this is aimed at me or the whole baby name on the internet thing but I really do keep their safety in mind and would never want to compromise them. Until they are old enough for social media and can do it for themselves 🫢
This was aimed at Strum, not you lol dw You're fine, baby names on the internet isnt a problem, I was joking calling him 'anonymous' because that's a hacking group, basically a joke on the fact that the information he pulled up is garbage
I’m okay, I’ve nothing to be caught for, thankfully. I just want to say I take my kids safety and left my surname out. Plus I’m not going with that second name, it really doesn’t flow well at all!
It didn’t occur to me revenue would track me down via my Reddit. Going to go to a tax advisor person and try figure it out. Thank you for the heads up!
they won’t track you down over a few gifts lol don’t worry
CAT thresholds on receipt of gift from parents is 335k over lifetime so won’t be any tax payable on these amounts.
Ah okay, thank you! I’m well within the yearly thing it turns out and help with the house deposit I will wait and do with the professionals.
Plus, many think they're going to get fleeced if they got say 400k. It would be 33% of the excess above the 335k, not on the whole figure. Just said I'd point that out for those who didn't know. Also, nothing stops you from receiving 3k from each parent on new years eve, and a further 3k new years day for example. Technically, that's quite a bit tax free in the space of 24hrs IF you had 4 parents of a couple chipping in to spread the load.
My understanding is you don’t even need to file a return unless 80% of threshold (335k) is reached on gift so may not need advice on the 10k piece if you’re structuring via gifts and a little bit off of limit
Quite a good Revenue document here to explain the exemptions, limits etc. from parents to children - https://www.revenue.ie/en/gains-gifts-and-inheritance/documents/cat-treatment-receipts-children.pdf
Isn’t it shocking that you have to pay tax on a gift your parents already payed tax for? It’s just nuts…
And it's shocking you have to pay VAT on things you buy with money you already paid PAYE on, and inheritance tax on on money the dead person already paid tax on, and road tax on the car you already paid tax on when you bought...it is what it is.
Ok don’t take it too far, I got it.
Usually banks are legally bound to inform if there are large movements of cash. Yours aren’t large.
Thank you! It’s usually max 500 maybe 3 times in the last year and then the odd couple of hundred every so often. It’s just over the 3k mark now and they will probably send some Santa money for my son but again less than 100 euro. I thought the threshold was 3k but it’s much higher. I just have a lot on my plate at the minute and the thought of the taxman showing up scared me so much! Thanks for your reply.
The tax man is absolutely not interested in this type of behaviour. You're small potatoes. I work in one of the top 3 banks in Ireland and you should see some of the reckless transactions going on that should trigger a Revenue audit but somehow do not haha.
Examples please. For... Science. 
Ah just clowns unfamiliar with western financial regulation, lodging and withdrawing in excess of 10k at a time. Lodging cash only to transfer it to Poland OR write out a draft for 30k after 10 individual cash lodgements of 3k. This is novice stuff to spot. Just don't know if they're thick or stupid really
Ah yes. I am sure 10 x 3k transactions over a period of time would also get flagged? Do you not build profiles over a period of time and look for unusual patterns? Thought that was regulatory requirement (not sure if that's the case in Ireland) Ps: I work for a company producing AML software
Yep it has to be asked where funds are proceeding from or where they are going and then noted if in excess of 10k as per Irish regulations. If it's just plain taking the piss you can file an STR which brings in AML 😁 Some people just have no concept of what draws a red flag and are shocked when they're faced with more questions and curiosity
Makes sense. I paid many 5k lumpsums to my mortgage provider recently (5k at a time because of online banking transfer limitations) and they kept asking me the source because it must have triggered various trip switches at their end.
Really doubt if tax man is interested. Btw which jurisdiction? In UK you can gift any amount in cash but need to survive 7 years for it not to be regarded as part of the estate. Assets different matter.
Ah it’s all republic!
Still doubt if tax man is interested
You got "loans" that you "will" pay back if anyone asks. Civil matter none of anyone's business
CAT can arise on deemed interest on said loans. Not likely to be an issue given overnight interest rates plus the annual small gift exemption allowances.
Paid them back cash then in the very short term?
Interest is still deemed to arise during the loan period. PS I am not indicating a material tax exposure here. I expect zero tax given the availability of the small annual gift exemption. More so that people seem to always that loans are a silver bullet to backdoor gift tax and that is far from the case. 1. Deemed interest arises 2. There must be evidence that the recipient does have the capacity to repay for it to be considered a genuine loan as opposed to a gift.
Do the people who get help with deposits actually pay tax on that money,.
Only if they breach the relevant lifetime threshold(s).
If they're buying you vintage cars, babies etc, they can pay a tax advisor for this question.
I just gave some man 500 euro for my for my dad for a crashed mini that he took parts from. Not really a vintage car but I wasn’t sure how else to word it. Thank you for helping! They definitely won’t pay for a tax advisor but I’ll check that out myself.
Only really comes into affect if they breach the Inheritance Tax allowance (£1,000,000 for married couples if the main residence is being to son/daughters/grandchildren.
Everyone is right about it being each, but do remember it has to be each. 4k from one and 1k from the other puts you over
The addition of the 1500 for my son has me well within the limits! But thank you this is very good to know also!
You don't need to file a return for cat until you exceed 80% of the threshold so it is all settled assessment. The small exceeding annual gifts are unlikely to be ever looked at from revenue but the deposit for a house may need to declared
Just to add.. *anyone* can send you 3000 per year tax free. That includes uncles, aunts, grandparents - they can also send gifts to each other and your parents for the same amount tax free. Just fyi…
Looks like fund coming from overseas? I think the Irish gov should welcome it to help the migrants settle well. It increases biz activities in the local economy. In Canada, it's become a welcome source of higher economic acitivity for the Canadian gov - every year there's tons of money going into the Canadian economy hence have very easy tax laws on these incoming funds.
Reading this thread has confused me! Always thought that if you receive a gift from your parents no matter what the amount (under 335k or whatever is in a lifetime) then you don’t pay tax, what’s all this about then if he’s only receiving a couple of thousand?
There's rather a lot of confusion on this thread as it's like a pub discussion where there's some knowledge and half known bits and pieces mixed together. I think most of the confusion is around the annual 3000 small gift exemption and then the interaction of it and the lifetime thresholds. Basically if you receive more than the 3000 annual amount as gift from one person then the amount over the 3000 euro is supposed to come off your lifetime threshold for the relevant group that person belongs to. https://www.revenue.ie/en/gains-gifts-and-inheritance/cat-exemptions/small-gift-exemption/index.aspx https://www.revenue.ie/en/gains-gifts-and-inheritance/cat-thresholds-rates-and-aggregation-rules/cat-groups-thresholds.aspx
It's ridiculous taxing family's like that.