An elderly relative wishes to give me $50,000 when she sells her home and moves to a retirement village. Will this cause any tax issues for either of us?
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Answer by Bronwyn Tan, Sydney 2000 NSW
- Amounts of cash received as a gift are generally not assessable income for tax purposes.
- However there may be other consequences of a gift.
- In particular if your relative intends to receive the aged pension there are rules relating to the maximum amount of gifts that she can give: http://www.humanservices.gov.au/customer/enablers/assets/gifting.