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Donations and other gifts: the right timing pays off
Every calendar year you can donate an amount to your children, but also to third parties, tax-free. It pays to make your donation at the right time. You may also be able to benefit from additional deductions by converting your regular donations into periodic donations.
The gift tax has a number of exemptions. For example, there is an annual exemption for gifts from parents to their children. In 2023, the tax-free amount to donate to children is €6.035.
Will your child turn forty in 2024 and would you like to donate more than the annual exemption? Then this year you can still take advantage of the increased gift tax exemption for donations by parents. In principle, children who are between eighteen and forty years old at the time of the donation are allowed to do this profession once in their life.
Donate to third parties or an ANBI
Only in 2023 will it be possible to make an increased, exempt donation to a third party for the benefit of a private home.
Donating, privately or from your BV, to a cultural public benefit institution (ANBI) can also be tax-efficient. You can read more about it on Flynth's website.
Convert your regular donations into periodic donations
There are conditions attached to the size of the gift deduction, such as a threshold. A donation is only deductible if it exceeds the threshold. This threshold does not apply to the deduction of periodic donations. Are your regular donations to charities not fully deductible? Then consider converting these donations into periodic donations. You then record in writing that you will donate a fixed amount for five years. Read how you can benefit from full deduction this year.
More information about donating and your assets
Would you like more information about donating to children or third parties, even if the amounts involved are large? Our wealth and income planning specialists can assist you with this. Based on your future plans for your company or privately, they will work with you to create a plan for your asset management. We take the tax options into account. Often a lot of tax can be saved in a simple way. Knowing more? Please contact us.
View all of Flynth's end-of-year tips.
