A temporary tax exemption allows you to give 100,000 € to your loved ones to realize a real estate or business project.

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IStock / City Presse

Difficult to complete important life projects without a helping hand.

To set up a business or become an owner, financial assistance from parents or grandparents is therefore always welcome.

And thanks to reduced taxation, this act of generosity can be completely exempt from taxes.

A principle of freedom

In principle, anyone with the legal capacity to dispose of their property and who is over 16 years old can make a donation by calling on a notary.

Whether it is real estate, such as a house or land, movable property, such as a car or paintings, or even a large sum of money, the main thing is that you are already there. owner.

Likewise, this gift must not encroach on the hereditary reserve vested in your descendants, that is to say the part of your patrimony which must necessarily come to them.

These precautions being taken, it is a question of making calculations.

Because, depending on the type of property given and its value, your beneficiary could be liable for a tax called "gift tax".

Abatement ceilings

Subject to respecting certain limiting amounts, it is however possible to grant a donation to the same person every fifteen years, without incurring taxes.

If you are under 80, you can give a sum of money of up to 31,865 euros to your child, grandchild or great-grandchild of full age, without having to pay any rights over it. .

In addition to this specific exemption case, the tax administration applies certain allowances to calculate the duties to be paid.

This concerns donations of sums of money exceeding 31,865 euros, as well as donations of movable and immovable property or even securities or securities.

A child can receive up to 100,000 euros from each of his parents without paying anything.

The allowance rises to 31,865 euros for a donation to a grandchild and to 5,310 euros for a great-grandchild.

The spouse or PACS partner can receive 80,724 euros.

In all cases, an additional allowance of 159,325 euros is added if the beneficiary is disabled.

It is therefore only when the value of the donation exceeds the planned thresholds that the surplus is taxed according to a progressive scale.

Facing the crisis

The economic crisis caused by the coronavirus pandemic has also prompted the State to increase temporary financial aid for households.

And the third amending finance law for 2020 has given an exceptional boost to the tax regime for donations.

From then on, any person can give up to 100,000 euros in the form of a sum of money to a child, grandchild or great-grandchild or, if he has no descendants, to a nephew. or a niece, without any right to pay.

Please note: the ceiling here concerns the donor.

The beneficiary can therefore receive several gifts of this size.

To take advantage of this tax rebate, the donation must be made between July 15, 2020 and June 30, 2021.

In addition, the recipient of this envelope must use the money within three months of the payment to carry out one of the three operations determined by the legislator, namely to build his main residence, to carry out energy work or to invest in the capital. of a small business he runs.

Note that this donation of money can be combined with the classic allowances described above.

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Small gifts that are not taxed

If the notarized donation is subject to strict taxation, donations made in the private sphere are up to you.

But beware of abuse.

You can write a check for several hundred or a few thousand euros for the benefit of a loved one during a special event such as a wedding or a birthday, for example, without fear that the tax authorities are interested.

As long as this "present of use" has a moderate value, it escapes all tax.

Likewise, any movable property - objects, sum of money, shares and securities, etc. - can come under manual donation, without any administrative formalities.

However, you must be careful not to be too generous, otherwise your gift could be taxed if it is revealed during a tax audit.

As soon as the sums involved are important, it is therefore recommended to use a notary.

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