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
In the context of trusts, these items can all be gifts:
- Transfers of any items (for example, company shares or
- 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. This means that:
- Gift duty will not be payable for dispositions of property made
on or after 1 October 2011
- Gift statements will not need to be filed for dispositions of
property made on or after 1 October 2011
- However, gift duty and gift statements will remain due for
dispositions of property made prior to 1 October 2011
For gift duty on any gifts made before 1 October 2011, the IRD's
guide on the IRD website is helpful.
For more information on gifting please give us a call.
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