Do you intend to give money to your children? If for this you have to sell a property that has increased in value (a studio or shares, for example) to then give them all or part of the sums corresponding to the sale price, this operation will be subject to double taxation: the plus- The value realized on the occasion of the sale of the studio or the shares will be taxed in your hands with income tax and social security contributions, and your children will have to pay donation rights on the sums they receive.
The solution ? Reverse the order of operations. If you give the studio or the titles to your children, it being up to them to sell them to obtain the liquidity they need, you will escape the taxation of the capital gain, because a donation – unlike a sale – does not trigger its taxation. You will be able to pass on the entire sale price to your children, without any tax friction.
If your children then resell the studio or the titles at the same price as the value entered in the deed of gift, there will be no taxable capital gain. Only donation rights will be due, after deduction of the deduction of 100,000 euros applicable between parents and child if it has not already been consumed during the last fifteen years.
Unrealized capital gain
Demonstration of supporting figures: you want to sell shares to give your daughter cash. Their selling price is 50,000 euros and it is assumed that you bought them for 30,000 euros. Or an unrealized capital gain of 20,000 euros.
If you sell them, the capital gain will be taxed at the rate of 30% (12.8% for income tax and 17.2% for social security contributions), or 6,000 euros of tax payable.
You have 44,000 euros left to send to your daughter. Taking into account the reduction of 100,000 euros applicable between parent and child, your daughter has no gift tax to pay.
If you reverse the order of operations and give the securities to your daughter, this allows you to purge the taxable capital gain: the securities enter her assets for their value on the day of the donation (i.e. 50,000 euros) and, if your child resells them at the same price, there is no taxable capital gain. In the end, your daughter ends up with 50,000 euros instead of 44,000 euros and she will not have to pay donation rights either, given the sums at stake.
In order not to incur the wrath of the tax authorities and avoid the temptation to call into question the operation on the basis of abuse of rights, it is sufficient to scrupulously respect the chronology of the operations and not to reclaim your ownership. , one way or another, all or part of the sale price.
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