GIFT TAX FOR NEW IMMIGRANTS IN CANADA

[vermas]

Dear seniors,

I understand that there is no gift tax in Canada. Does it apply to the new immigrants also? Will I need to pay Gift Tax if my father gifts me some money to help me in making down payment for an apartment or a house? My father would have already paid income tax on this money in India.

Your guidance and suggestions will be appreciated.

Sunny

 

[Johnny31]

Dear seniors,

I understand that there is no gift tax in Canada. Does it apply to the new immigrants also? Will I need to pay Gift Tax if my father gifts me some money to help me in making down payment for an apartment or a house? My father would have already paid income tax on this money in India.

Your guidance and suggestions will be appreciated.

Sunny

I know from personal experience, I've had people wired me money from other countries and I didn't need to pay taxes on them. If your father send you the money via wire-transfer, the only thing he needs to pay is the service fee that Canadian banks charge.

 

[vermas]

Thanks Johnny,

Did you declare this money in your income tax returns? Is it required to be declared to be on safe side rathre being questioned by CRA at a later date?

I know from personal experience, I've had people wired me money from other countries and I didn't need to pay taxes on them. If your father send you the money via wire-transfer, the only thing he needs to pay is the service fee that Canadian banks charge.