RetireJapan

Hi, I have a question about gifting:

A person receives a ¥100,000 new year’s gift from their in-laws, followed by a large gifts over the year.

I have been reading about gifts, and how New Year’s gifts are not taxable if they are within acceptable limits.

So if you have experience of gifting, have you dealt with the following questions?
1j What constitutes acceptable limits? Apparently even professionals have differing views
2) Is it normal socially for adults to exchange otoshidama (New Year’s gifts) too?

IloveJapan wrote: ↑Tue Dec 24, 2024 8:00 am Hi, I have a question about gifting:

A person receives a ¥100,000 new year’s gift from their in-laws, followed by a large gifts over the year.

I have been reading about gifts, and how New Year’s gifts are not taxable if they are within acceptable limits.

So if you have experience of gifting, have you dealt with the following questions?
1j What constitutes acceptable limits? Apparently even professionals have differing views
2) Is it normal socially for adults to exchange otoshidama (New Year’s gifts) too?

1) tax free limit is ¥1.1m per year (calendar year). This is per recipient--if two separate givers give the same recipient a total of more than that, then the recipient would need to file a gift tax return and pay any taxes.

2) IME, never done.

IloveJapan wrote: ↑Tue Dec 24, 2024 8:00 am
2) Is it normal socially for adults to exchange otoshidama (New Year’s gifts) too?

Firstly, well done for not mentioning the frozen pension. A big step indeed!

I got married in Japan just in time for my BIL to start a family.
I was giving toshidama for his kids even when the youngest ran away as a teen and started a family of her own. I had to keep giving until the prescribed age as we weren’t supposed to know about this. She was always just “busy”.. well. In a way I guess she was..

Anyway. Last year was the first year I’ve not had to give toshidama. Just before I retire and stitch leather patches to the elbows of my cardigan*. To be clear. I’ve never received toshidama personally. Much like money for buying a house, entrance to school, graduating, sneezing, going into hospital, getting out of hospital, etc.
Nada, nowt, not a penny.
Do I sound bitter? Good. I should. Don’t get me wrong. I’m not wishing ill health on myself to recoup some loses. But if I stay healthy it will be my wife that will cash in upon my demise.. Maybe I should ask her for an advance on it..(The money. Not an earlier demise date. Scratch that idea. Far too dangerous to ask…).

Do adults exchange toshidama. From personal experience. It’s a no.

* It’s now months until I retire and clearly I’m not frequenting shops that sell cardigans. Will I need to buy online? (That’s fine as I’m not expecting a perfect fit as I sense that’s one of the unspoken rules vis-à-vis cardigan sartorial norms..)

We give toshidama to my wife's parents. They are in their 90s and seem to appreciate the gesture.

Giving to other adults? It has never come up.