The benefits of giving money at Christmas
Offering money can help prevent it gifts inappropriate or unnecessary. According to a new study, one of the three French consider this gesture the ideal gift. Whether by check, transfer or cash, this solution is especially popular with those lacking inspiration. Plus, it’s a way to pass on part of your inheritance while financially supporting your loved ones.
Tax limits: the concept of “current use”
The law distinguishes between ” custom gifts »tax-exempt, donations subject to tax. To be considered a custom gift, theThe amount of money should be proportional to income or assets to give eIt should be given on the occasion of a special occasion, such as Christmas or a birthday.
Court decisions and tax experts set approximate thresholds, although there is no official limit written into law. So, the taxpayer usually allows up to 2% to 2.5% of the donor’s annual income or assets.
Recommended amount based on income
Here are the basics recommended to avoid any tax problems:
| Net monthly income | Recommended amount (€) |
|---|---|
| SMIC (~€1,800 gross) | 350 to 450 |
| Median salary (€2,180) | 520 to 650 |
| High income (€4,000) | 960 to 1200 |
These indicative amounts vary depending on the financial situation and must remain in reasonable proportion.
Special cases: exempt donations
In addition to the usual gifts, parents can send up to 100 000 euros every 15 years to their children without inheritance tax. However, this exemption applies to official monetary donations, as opposed to a gift such as that given at Christmas.
Tax reclassification risks
If the value of the gift exceeds what is considered reasonable, the tax authorities may reclassify the gift as a “donation”. In this case, gift tax may be required. The tax authorities will weigh each situation individually, taking into account the frequency and nature of the donations.