Edit: Thank you for the raucous discussion – I now understand that my question was entirely overeager (stupid)! With that said, I am anticipating a down payment on a house from my parents via the property exception for the gift tax, which is an added layer as to why I wanted to be sure that there was no other opportunity to end up on the wrong side of the tax code. I’ll use common sense moving forward!
So as the title says, I currently pay for mine and my boyfriend’s living expenses – we live together and I pay rent, and he has a family credit card linked to my own CC that he uses for shopping for groceries or things for the both of us. Anything solely for him, he puts on his own card.
At the end of every month, he then pays me 60,000 for rent + 30% of the total credit card bill, the total of these two always ranges between 100,000 to 150,000.
We both have the same legal residence, but as we are not married (gay relationship), does this transfer of money he makes every month count as a gift? He is not on the contract of our apartment complex, FWIW.
Also, a related question, but my parents are talking about flying myself and my boyfriend out to Europe this summer. If we bought the tickets and then they paid us back, I assume this (currently 200k) expense would count toward my 1.1M gift allowance? If I wanted to minimize my gift allowance in this scenario, would it make sense to front the ticket and then in exchange have my parents pay for lodging? Assume the Japanese government views both the ticket and lodging as a gift, but in the latter scenario there is no way to necessarily track it if money never enters my account.
by dignifiedstride