Maehara eyeing steep rise in gift tax exemption for home buyers

Thursday 22nd October, 07:00 AM JST

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9 Comments

as_the_crow_flies at 08:25 AM JST - 22nd October

The tax exemption is granted to people aged 20 and over who receive financial support from their parents or other family members for the purchase of homes.

Does anyone understand this? It sounds like if someone in your family gives you money towards buying a home, you get a tax break. Is that right? If so, does it mean you can get up to 20 million a year? as a gift and that counts as a tax allowance? Sounds like a good deal for the receiver! And the givers, do they get a tax break too, or are they assumed to be rolling in it, and not needing one?

Maybe I should start asking the folks to lend me some money. I can just imagine the hurdles the tax office will throw up when I present original documents in English.
ebisen at 09:27 AM JST - 22nd October

This is extremely good - My wife's parents wanted to contribute for our new house, and I had to refuse (or explain them that it would be stupid). As of now, if you receive a gift from your parents worth more than 50000 USD, you'll have to pay about 35-50% back to the stupid idiotic politicians.
Richard_III at 10:59 AM JST - 22nd October

This Maehara seems to have his head screwed on right. He's making all the right noises at the moment.
Yelnats at 12:32 PM JST - 22nd October

My place is worth sen gohyku man yen less now than when I bought it. Cannot sell it...gonna declare bankruptcy if I can. Sure could use a nice tax free gift.
dishdash at 12:48 PM JST - 22nd October

From 6 to 21 mill is quite a difference. Interesting to see whether it gets passed. Even by western standards thats a huge change. Good Luck!
saru_au at 04:53 PM JST - 22nd October

free "highways" (soon to be parking lots) big tax breaks etc, etc..

system will be broke real soon with all this giving out money... where are we USA ?

gotta end somewhere.
usaexpat at 12:21 AM JST - 23rd October

That's a big exemption, I think in the States it was $20,000 which my parents helped us out with when we bought our first home. My house here isn't even worth that much but I sure wish someone would have given me a gift that big to buy it.
Klein2 at 08:13 AM JST - 26th October

Yelnats, it is called "anvil catching." Enjoy. Believe me, many are feeling your pain.

Everyone is all for this, but don't forget, this is a measure to help people avoid inheritance taxes. I mean, why should the government tax transfers among family members? The reasons are obvious.

Great policy there Maehara. Throw a bone to poor people, give the steak to the rich old people and their families, and reduce tax revenues.

What people SHOULD do is gift money to their children starting today. In small amounts over many years, children can have their own nest eggs when they reach maturity. The proposed policy protects people who did not plan and who want to avoid inheritance taxes. Bad idea.
Klein2 at 08:14 AM JST - 26th October

This measure also makes young people lazy, but I won't get into that.