You are here: Home > Resources > Tax Facts

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.  

Please be aware that there is a $6,500 annual gifting limit for a gifting period of 5 years before going into care for rest home subsidy purposes.

For more information on gifting please give us a call or refer to the Inland Revenue guide on Trusts and estates income tax rules (IR288)

Supplied by CCH Business Fitness NZ

What We Do

We provide you with the accounting services that are innovative and client-focused .

READ MORE

Who we are

At Strive Accounting Ltd we aim to provide you with advice that will help your business to succeed.

READ MORE

Tool Box

View our handy online tools and resources featuring key dates, tax facts, useful links and calculators.

READ MORE

Contact / Connect