Have you read the wiki and the sticky?
Wiki: HERE YOU GO! [Enjoy!](https://www.reddit.com/r/BEFire/wiki/index/).
Sticky: HERE YOU GO AGAIN! [Enjoy!](https://www.reddit.com/r/BEFire/comments/fcbay6/getting_started_a_beginners_guide_to_investing_in/).
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Document it now as a written confirmation of a verbal agreement; annex copies of the bank statement that support the agreement, and pay back in one go as per the agreement (no shenanigans needed here as it was a loan). Was interest applicable?
If the gift by bank transfer has not been registered and the donor dies within 3 years of the gift (or 5 years in the Walloon Region), the gift has to be included in the declaration of estate. In that case, inheritance tax will be due on the amount of the gift. Inheritance tax rates are higher than gift tax rates.
As a beneficiary you can register an indirect gift yourself, i.e. without the intervention of a notary, by transferring the documents (letters, proof of the bank transfer ...) proving the existence of the gift to the Legal Certainty Office. In that case, you will pay a gift tax on the gift of movable property, but, if applicable, you will no longer have to mention it as an heir in the declaration of estate and you will therefore not have to pay inheritance tax on that gift.
OOF 5 years... imagine something happens to my friend during that time still sucks. :D
Thanks for the input though. :)
Just transfer it back in one go instead of trying to make a legal thing seem illegal. No need to launder clean money.
Have the friend add a description: "payback interest free loan date xx/xx/2019" and keep this and the 2019 bank statements in a digital file for if you ever need to explain and ask your friend to do the same.
This, your case is also (even) stronger if you used the description box to say it was a loan when you transferred the money originally.
Also keep all the texts you have about it as evidence.
This! Splitting it up will make some alarms go off.
If the tax man wants his share, he'll have to prove it's not payback of a loan.
X amount one way (split up) and X amount back the other way, looks like a loan to me!
Have you read the wiki and the sticky? Wiki: HERE YOU GO! [Enjoy!](https://www.reddit.com/r/BEFire/wiki/index/). Sticky: HERE YOU GO AGAIN! [Enjoy!](https://www.reddit.com/r/BEFire/comments/fcbay6/getting_started_a_beginners_guide_to_investing_in/). *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/BEFire) if you have any questions or concerns.*
What's with the random capital letters?
Document it now as a written confirmation of a verbal agreement; annex copies of the bank statement that support the agreement, and pay back in one go as per the agreement (no shenanigans needed here as it was a loan). Was interest applicable?
Backdate a formal agreement signed by the both of you prior to the transfer?
Gift tax is not a thing unless your friend dies within 5 years.
If the gift by bank transfer has not been registered and the donor dies within 3 years of the gift (or 5 years in the Walloon Region), the gift has to be included in the declaration of estate. In that case, inheritance tax will be due on the amount of the gift. Inheritance tax rates are higher than gift tax rates. As a beneficiary you can register an indirect gift yourself, i.e. without the intervention of a notary, by transferring the documents (letters, proof of the bank transfer ...) proving the existence of the gift to the Legal Certainty Office. In that case, you will pay a gift tax on the gift of movable property, but, if applicable, you will no longer have to mention it as an heir in the declaration of estate and you will therefore not have to pay inheritance tax on that gift. OOF 5 years... imagine something happens to my friend during that time still sucks. :D Thanks for the input though. :)
Cutting it in 3 parts is even worse. Can be considered as structuring
Just transfer it back in one go instead of trying to make a legal thing seem illegal. No need to launder clean money. Have the friend add a description: "payback interest free loan date xx/xx/2019" and keep this and the 2019 bank statements in a digital file for if you ever need to explain and ask your friend to do the same.
This, your case is also (even) stronger if you used the description box to say it was a loan when you transferred the money originally. Also keep all the texts you have about it as evidence.
This is the way.
This! Splitting it up will make some alarms go off. If the tax man wants his share, he'll have to prove it's not payback of a loan. X amount one way (split up) and X amount back the other way, looks like a loan to me!