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TaxRobin, Senior Advisor
Category: Finance
Satisfied Customers: 15308
Experience:  15 years of experience in financial advising with emphasis on tax issues.
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My nephew in Canada wants to send me 10,000.00 ea yr. over

Customer Question

My nephew in Canada wants to send me 10,000.00 ea yr. over the next 10 years. What will that save him in taxes, and do I have any tax liability. I'm retired and live on my s/s 1500.00 a mo.
JA: The Accountant will know how to help. Is there anything else important you think the Accountant should know?
Customer: don't believe so...................
Submitted: 7 months ago.
Category: Finance
Expert:  TaxRobin replied 7 months ago.

Hello, I'm Robin. Welcome to JustAnswer. I'm reviewing your question now and typing up my reply. I'll post that in just a few moments.

Expert:  TaxRobin replied 7 months ago.

If you receive $10,000 a year from your nephew, as a gift it is not reported by you in the US as income. It is not reported as a deductible gift by him either.

If this is not a gift and you have sold something to him then that may change the answer.

Customer: replied 7 months ago.
How much would he have to send in order to report as deductible gift, and what would his benefit be
Expert:  TaxRobin replied 7 months ago.

He does not get to deduct any gift to an individual. The gift has to be to a charitable organization recognized by either the US or Canada.