Personal Finance

Tax implications: Receiving gift from parents

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  • Aug 24th, 2013 11:29 pm
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Newbie
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Feb 14, 2009
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Tax implications: Receiving gift from parents

Hi all
My parents would like to gift some money to me. My parents live abroad in my home country. What are the tax implications? Do I have to pay any tax on any such gifts?
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Deal Addict
Aug 19, 2013
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SandsofTime wrote: Hi all
My parents would like to gift some money to me. My parents live abroad in my home country. What are the tax implications? Do I have to pay any tax on any such gifts?
Gifts are not taxable. Just be sure to keep some documentation about the gift (emails from parents, documents showing where the transfer of money is from etc). That way if you are ever audited you can show it is a gift.
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Jan 14, 2013
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Toronto
The government needs to take off its filthy hands from it's citizens.
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Jan 27, 2007
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If it is a true gift, with no strings attached e.g. "Hold this money until I come to Canada to get it" then there ought to be no problems or tax consequences.
[QUOTE]I know you are, but what am I.... ;) [/QUOTE]
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Aug 1, 2008
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Momof3cuties wrote: Gifts are not taxable. Just be sure to keep some documentation about the gift (emails from parents, documents showing where the transfer of money is from etc). That way if you are ever audited you can show it is a gift.
you don't have to prove it's a gift, they have to prove it's not
I feel the need... the need for speed.
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Aug 19, 2013
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Bomberman07 wrote: you don't have to prove it's a gift, they have to prove it's not
No they don't. Money received is taxable unless it meets certain criteria. Gifts is one of them. So a gift is not taxable. However you do need to have some sort of proof it is a gift (like I said something showing it came from your parents is sufficient). If you don't have proper records the CRA can and will add it to your income if you are audited. They do not need to prove where the money came from. They just need to show that there is nothing to show its a non-taxable source of income.
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Aug 19, 2013
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ba2plus wrote: The government needs to take off its filthy hands from it's citizens.
They don't tax gifts. So I don't see your point. And if you don't want to pay taxes then I suggest you don't drive on the roads, go see a doctor, send your kids to school, or call the fire department if your house is one fire.
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Momof3cuties wrote: They don't tax gifts. So I don't see your point. And if you don't want to pay taxes then I suggest you don't drive on the roads, go see a doctor, send your kids to school, or call the fire department if your house is one fire.
:)
I feel the need... the need for speed.
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Apr 4, 2009
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Bomberman07 wrote: you don't have to prove it's a gift, they have to prove it's not
Too much TV.

With regard to the CRA ... you have the burden of proof.

In this case, OP would need to prove the money was not a side job income (ie. tips from being a waiter) - which is taxable.

In OP's case, a documented wire transfer from the parents is the perfect proof - gifts are not taxable.

Having said that, a $100K gift from your employer would be viewed very suspiciously, likely be treated as income. :)

Same with a gift of a 2 weeks cruise from your employer or supplier = taxable benefit.

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