Bringing Money as a gift

[humdrumdum]

hi,

I got my PR earlier this year, but due to a change in circumstance, I will have to return to my home country next year for several months. I still plan to return to Canada in 2020 to maintain my PR but im looking to purchase a home so that I dont have to keep renting an empty apartment while i’m away or look for a new one when I get back (Vacancy rates in Vancouver are so low...)

My parents are willing to help me financially since it would be a nice retirement option for them as well, but we’re not sure what’s the best way to bring in money.

Im currently self-employed and to be honest, my cash flow isn’t good enough to get financing, but with my parents money, we’re able to buy a house in cash.

We know that a lot of people bring in money as “gifts” and I do also know we have to declare that at the border.

But did anyone here have an experience depositing a bank draft for a large sum of money as a “gift”? Is there a letter or something else the bank is looking for?


Would appreciate your input.

 

[steaky]

Do you call 300k large? I sometimes deposit such amount bank draft to my local Canadian bank account and no questions were asked. However, the bank will start to ask questions if you deposit that sum in cash. I heard people said they won from casino....

Btw, why don't you buy it now? The market is doing well lately and some houses in my area was sold within weeks. You could rent it out if you don't want to empty home tax.

 

[foodie69]

For most people I know, $300'000 is not a small amount..

 

[mad_hatter]

There is no gift tax in Canada, so receiving a large sum of money from your parent would not have a tax implication. However, CRA might question you about it. As long as you provide a paper trail you would be fine. Instead of depositing a bank draft, I would suggest your parent wire the money to your account instead.

If your intention is to buy a house, rent it out while you are away and return to live in it. Be mindful that you will have to pay capital gain on the house if the value increased.

 

[Amelda]

What proof (documents) we need to show CRA to claim the amount received as gift from parents?

 

[canuck_in_uk]

What proof (documents) we need to show CRA to claim the amount received as gift from parents?

Bank statements showing the transfer.