Cash gift from girlfriend abroad

Secariet

Good afternoon - I'm sorry if this is in the wrong forum, as it both is and isn't related to tax. I'll try to keep it as clear and concise as possible, and if I've posted it in the wrong location, please be sure to let me know.

I've been with my girlfriend for quite some time, and she recently expressed that she wanted to send me a cash gift; I've fallen on hard times lately and she's insisted I receive the money, much to my chagrin. The amount adds up to €18000; she is currently a permanent resident of the United States and has never been to Ireland, and I am a permanent resident of Ireland. I have no other assets or income for the entire year. I have three questions. I have no other cash assets, or assets of any other type, really.

1) How much tax are we liable to pay on this sum, and which of us is required to pay it?
2) Will I still be entitled to collect my social welfare benefits, having received a gift of that size, granted that I have no other cash or estate assets? No savings, etc. I am not sure as to the rules of this matter.
3) What would be the best way to receive and report this gift to make sure everything is on the up-and-up? Bank transferring that amount of money scares me, but is it the best way to go about it?

Thank you for any and all advice you may give me. Please have a pleasant afternoon.

Alan Shore

The gift would be subject to Capital Acquisitions tax.

You have a threshold of €15,075.

The first €3,000 of each annual gift is exempt. So if she was to give you €3,000 in 2012 and then €15,000 in 2013 you would only use €12,000 of your threshold and no return is required and no tax is payable. Any future gifts from non relatives over €6,000 will be taxable at 33%.

srsly78

You are allowed to have savings up to e20k without it impacting your means test.

Secariet

Srsly78, thank you for your reply. I'm slightly worried social welfare might think of this as something shady, or otherwise use this as an excuse to stop my welfare payments (which I need to support myself, I live on a week to week basis since I was made redundant). Do I have anything to fear?

Alan Shore wrote: »

The gift would be subject to Capital Acquisitions tax.

You have a threshold of €15,075.

The first €3,000 of each annual gift is exempt. So if she was to give you €3,000 in 2012 and then €15,000 in 2013 you would only use €12,000 of your threshold and no return is required and no tax is payable. Any future gifts from non relatives over €6,000 will be taxable at 33%.

Thank you very much for taking the time to explain this to me.

If I'm understanding you correctly, she can give me up to €3000 yearly tax-free and, in addition, I have a lifetime gift-receiving threshold from her of €15075. Once I clear this threshold, any gifts I receive over €3000 (plus my remaining threshold), the amount over the exempt €3000 will be taxable?

Is this €15075 a lifetime gift-receiving threshold? Does this ever get "reset", or is it gone for good once it's filled? Also, does this €3000 yearly exemption apply to each person who sends me a gift, or to the total sum of all gifts I receive?

I apologize for the excessive questions, I just want to be sure of all of the technicalities, as I don't wish to get my partner in trouble. Are there any websites where I can read about these things in better detail? Particularly the tax-free threshold.
I'm sure American law is very different, but do you know of any fees/taxes she will be required to pay on her end?

Thank you both again for your replies. I sincerely appreciate it more than you know.

Alan Shore

15,075 is lifetime gift. €3,000 is per gift from each person per annum so if two people give a gift 3k x 2.

Don't know anything about us taxes.

http://www.revenue.ie/en/tax/cat/leaflets/cat2.html

Secariet

Thank you very much for the information. Is the lifetime figure per-person, or is that the sum of all of the gifts I can receive tax-free throughout my life?

Citizenpain

Secariet wrote: »

Thank you very much for the information. Is the lifetime figure per-person, or is that the sum of all of the gifts I can receive tax-free throughout my life?

Total gifts from that threshold group