Gifting amount and rules

[aplomb]

Hi PT

How much can be gifted per year before tax is applied(if any)? It is to a family member.

TIA ????

[Perry]

As I dimly recall, gift tax was abolished, quite some time back.

Supposedly, it was costing more to administer than it earned in revenue.

[aplomb]

Thanks for your reply. That was my understanding too, however I am keep seeing articles pop up that it's still $27,000 per 12mth period and the IRD booklet...I have no hope of understanding :0

Thanks again, appreciated your comments.

[Perry]

18 August 2011
Dunne: Tax bill abolishing gift duty passes
Revenue Minister Peter Dunne has welcomed the passage this evening of legislation that will make the tax system more efficient, reduce compliance costs and finally abolish gift duty.

IRD web site
Gift duty abolition

[aplomb]

Thank you for the link.

[Keys]

Rest home subsidies are affected I believe.

[Perry]

There used to be a seven years past gift value 'claw-back' for Rest Home subsidy calculations, apparently.

Now, it's quite difficult to know what the formula is and how it's applied. I've heard several versions.

Anyone better (more accurately) informed?