Hi everyone;
Does anyone know if there is any canadian tax on the senders or receivers end if:
Parents (Non PR and Non Canadian) living in Asia send gift money to their Canadian Resident children residing in Canada as a help to buy a property in Canada?
If Yes, Is there any limit on the amount of money that can be sent Tax free?
Also, is it only Parents, or Uncles and Aunts can also send gift money.
Does the receiver in Canada have to report this to the CCRA?
What sort of documents are required to prove the gift transaction?
I hope someone has answers to these, please help.
Thanks
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I believe Faisal is looking an answer to whether he would have to report in income if he receives money as a Gift from his Parents etc. from Asia who are Non PR or Non Canadian.
As far as I know that most of gifts and inheritances received by Canadians are not to be included in Income Tax Returns and are not declared to CCRA.
Comments any one?
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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada
Q: What is the gift tax?
The gift tax is a tax on the transfer of property by one individual to another while receiving nothing, or less than full value, in return. The tax applies whether the donor intends the transfer to be a gift or not.
The gift tax applies to the transfer by gift of any property. You make a gift if you give property (including money), or the use of or income from property, without expecting to receive something of at least equal value in return. If you sell something at less than its full value or if you make an interest-free or reduced-interest loan, you may be making a gift.
Q: Who pays the gift tax?
The donor is generally responsible for paying the gift tax. Under special arrangements the donee may agree to pay the tax instead. Please visit with your tax professional if you are considering this type of arrangement.
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Smiley,
I have a question for you.
The heading of Faisal's post says :
'Gift Money from Non resident Parents'
which I believe means that he is RECEIVING gift from his parent and NOT GIVING gift to his parents who are NON RESIDENT and are not PR of Canada.
So, in this scenerio is he required to report that gift to CRA (CCRA) as his income and pay tax?
I do not think so.
Please advise.
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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada
Hi Pramod
You are right. Thats what it means
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We will find a way or we will make one
Thank you very much Mr Pramod and Smiley for your input.
That was great help from both of you!
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