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FAMILY GIFT - Transferring money from USA to Canada

6718 Views 1 Reply 2 Participants Last post by  OhGreatGuru
My family has lived in the states over 14 years now. I am looking into getting my first mortgage here in Canada. My family would like to gift a significant amount - lets say $50k, but not sure how best to do it.

All I know is that any amount more than $10k needs to be reported for cross-border. What can I expect as a consequence of that? Is it just a paper-trail thing?

Also, would a gift like this effect my income tax?
Also, I am self-employed, if that makes any difference.

Essentially... what is the most efficient way of recieving such a gift.
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No, there are no tax consequences.

The easiest way (for you) is to give your family your complete bank account number (the 18-digit code on your cheques), and have them go to their own bank, convert the gift into Canadian dollars, and have the bank deposit it electronically to your account. (Better yet - mail them void cheque so their bank can read the numbers)

Alternatives would be US money orders mailed to you, but then you have to pay the exchange when you deposit them. And they will have to pay service charges of some kind for the money orders.

You don't "need to report it". Your bank will, and they will tell you what paper trail they want. Best bet is to tell the bank in advance and ask the manager what documentation they want. You may need a letter from your family before the bank will release the funds.

As an aside, be aware that mortgage companies are very suspicious of family "gifts" that turn out to really be loans. Unless the money is in your account for at least 3 months before closing, they may require an affidavit from donor verifying that it is a gift. And in any case you need it at least 1 month before closing.
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