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Donations tax w.r.t children



Can a parent contribute money towards the purchase price of a child's new home without being liable for donations tax if the amount is more than R100,000?

TaxTim TaxTim says:
26 June 2014 at 7:42

You can loan your child the difference, but you must be careful to charge a normal interest rate or risk SARS deeming the amount provided as a donation. You can write off R100 000 per year against the loan as a donation. You are also allowed to give money to your spouse and they can also donate R100 000 to your children. Transfers between spouses are tax free.

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