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I have a relative in Alberta who wants to gift money to me in the US. What are the gift tax consequences to the relative in Alberta?
 

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Gifting Money to a Relative in the US

Hello there,

I have a question about gift tax. My dad and I are both Canadian citizens and we would like to gift some money to my brother who is a US citizen (technically he is a citizen of Canada and US). How much is the limit before my brother in the US is taxed? Would we be taxed for providing him with the monetary gift as well? From what I have read, the maximum is $14,000 US per person but another article mentioned that there is no limit??

Would appreciate any insight on this.

Thank you!
 

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I have a relative in Alberta who wants to gift money to me in the US. What are the gift tax consequences to the relative in Alberta?
None. There is no gift tax in Canada.
+1 ... for the Canadian tax implications.

Depending on what "to me in the US" means - there could be US gift taxes to pay.
https://en.wikipedia.org/wiki/Gift_tax_in_the_United_States
https://www.irs.gov/businesses/small-businesses-self-employed/frequently-asked-questions-on-gift-taxes


Cheers

PS

I should add that a Canadian tax book from years ago suggested that where the gift amount was large, a written letter from the Canadian resident gift giver to clearly identifying it as a gift could be helpful if CRA asked questions years down the road.
 

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... I have a question about gift tax. My dad and I are both Canadian citizens and we would like to gift some money to my brother who is a US citizen (technically he is a citizen of Canada and US). How much is the limit before my brother in the US is taxed?
The IRS faq that is linked in post #4 says that for 2017, the annual exclusion is $14K, USD. They also list what gifts can be excluded.


... Would we be taxed for providing him with the monetary gift as well?
Unless the gift giver is a US tax resident and/or the Canadian gov't changes their policy on gifts before the gift is given ... as the givers look like they are Canadian tax residents with no connection to the US, I don't see why the givers would be paying taxes.

Technically, it is more like "additional taxes beyond any charged on earning the $$$ given" ... after all, if it is employment income that is being given, the will have been Canadian tax on the employment income to pay before the gift was given. If it is from a TFSA, then there's no Canadian tax on the earnings.


... From what I have read, the maximum is $14,000 US per person but another article mentioned that there is no limit??
Haven't researched it as I haven't given sizeable gifts (more like maple syrup) to my US relatives. Where the IRS says $14K, I'd want a reputable expert before I'd trust a different amount.


Cheers
 
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