QUESTION:
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I am planning to buy my first home and my parents who live overseas want to send me $90,000. I was convinced I did not have to pay tax on gifts until I found the following on the ATO website:
"You don't have to declare rewards or small gifts such as cash birthday presents. However, gifts may be taxable if they are large amounts..."
I am concerned as I consider $90,000 a large amount. Will I have to pay tax on it? What is the maximum tax free gift value?
ANSWER:
I wouldn’t be worried – the ATO are most unlikely to regard $90,000 as a "large amount". and the transaction is legitimitate.