Cash gift, is it taxable?

[btc]

Hi,

I have received a cash gift of 40k from a friend. It was transferred via Bpay, and on the statement it appears as 'loan repayment'. Do I have to report to ATO and pay tax on the money gifted to me? If not what sort of letter/statement would i need to cover myself incase of future tax audit?

Thanks for your advise.
Wil

 

[DaleGG]

Hiya Wil

No, this is not taxable income and accordingly it does not need to be declared on your tax return at all.

However, the onus of proof is on you to prove that it is not income and so any letters, emails, notes or anything else that shows that it was either a gift or a loan repayment are well worth keeping....just in case you are asked.

Dale

Hi,

I have received a cash gift of 40k from a friend. It was transferred via Bpay, and on the statement it appears as 'loan repayment'. Do I have to report to ATO and pay tax on the money gifted to me? If not what sort of letter/statement would i need to cover myself incase of future tax audit?

Thanks for your advise.
Wil

 

[btc]

No, this is not taxable income and accordingly it does not need to be declared on your tax return at all.
Dale

Cheers Dale.
But if i collect a loan repayment from any party, isnt that consider as income and thus taxable? So legally we can give any amount of money to anyone without the receiver paying any tax?? How does ATO know which end already pay tax on it?

 

[DaleGG]

Hi Will

No, the repayment of a loan is not taxable income at all.
However, the onus of proof rests on you to prove that it is a genuine loan and not income.

Dale

Cheers Dale.
But if i collect a loan repayment from any party, isnt that consider as income and thus taxable? So legally we can give any amount of money to anyone without the receiver paying any tax?? How does ATO know which end already pay tax on it?

 

[btc]

that is great news for me, Thanks heaps Dale.