Are financial aid to a relative are they deductible tax?

You financially support a family member or friend in a bad pass? The tax impact will not be the same if it is a donation or support, explains Olivier Rozenfeld, President of Fijetroy.

by

With the health crisis, one of your loved ones may be familiar with financial difficulties. By removing the loan, you can provide him with financial support in two ways.

It is possible to make a donation. It will have to be declared to the tax administration via the manual donations form # 2735, but can not be deducted from your income for the calculation of your tax.

Other option: Pour support. If the pension comes from a food obligation, it may be deductible from your taxable income. But beware, the help must be paid to a descendant (child, grandchild), an ascendant (parent, grandparent), a step-parent, a son-in-law. No tax benefit can be obtained by supporting a brother or a friend.

Silver as in kind

If this hand is paid by grandparents to a grandchild, it will only be deductible if parents are unable to meet the needs of children.

Finally, it is necessary to take into account the amount of the payment, both for the pension paid in money and in kind (food, housing, clothing, health expenses, tuition fees, etc.).

It must be consistent in relation to the needs of the one who perceives it and the resources of the one who pays it. In addition, there is a fixed ceiling deduction of 5,959 euros when paid to a single single child, and 11,918 euros for a couple or single with one or more dependent children (no fixed ceiling, on the other hand , if it benefits from an ascendant or a minor child).

/Media reports.