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We are going to build a cabin this summer and have all the financing in place with the bank. This week my parents said they want to give us money to put towards the costs. Are there tax implications for our parents or us if they give us $50,000 to $100,000? What if they paid some of the bills such as the lumber, siding, furnace and contractor fee?

Colleen
 

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They will be hit with a capital gain tax if they have to liquidate some of their assets. You may also be on the hook for any liabilities they might have. For example, they can't borrow the money, give it to you and then declare bankrupt. However, in general, as frugalTrader said, there's no gift tax in Canada and I think it's a good way to avoid bad debts.
 

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We are going to build a cabin this summer and have all the financing in place with the bank. This week my parents said they want to give us money to put towards the costs. Are there tax implications for our parents or us if they give us $50,000 to $100,000? What if they paid some of the bills such as the lumber, siding, furnace and contractor fee?

Colleen
It's nice to have parents!
 
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