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Legal Ease
Legal Ease, Lawyer
Category: Canada Tax
Satisfied Customers: 100023
Experience:  Lawyer
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Cash gifts for Canadian tax purposes.

This answer was rated:

My parents sold their house overseas and wants to move to Canada as permanent residents (this is their only property for personal use in Hong Kong). They wants to transfer the money into my bank account in Canada and wants me to use the money as down payment to purchase a property in Canada. My questions are: (1) Do my parents need to pay tax in Canada? (2) Do I have to report the cash as gifts from my parents for tax purposes? is this cash gift taxable in Canada?


The concerned amount is around Canadian dollars $350,000 to $400,000.

Thank you for your question.

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Gifts are not taxed in Canada.

So you don't need to report this gift.

Your parents do not have to pay tax in Canada (assuming they are not earning income of any sort from Canada) until they become residents in Canada.

Once they do then they need to report and pay tax on their income world-wide.

But they will not face double taxation because they will receive a foreign tax credit for any tax paid abroad.

Let me know if you need further clarification.
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Thanks and take good care!

Customer: replied 4 years ago.

Hi Debra


First of all, thanks for your advice and you deserve that rating. I will keep your name and will get back to you if I require further assistance from you regarding any Canadian tax issues.


Thanks & kind regards