tax on a familial gift for my Canadian wife from her family in Canada, where there is no gift tax

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morgtan45
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Joined: Sun Jun 20, 2021 11:34 pm

tax on a familial gift for my Canadian wife from her family in Canada, where there is no gift tax

Post by morgtan45 »

I am a US citizen and my wife is Canadian citizen with a green card for the USA. We are looking to buy a house here in the US and my wife's father, who lives in Canada, wants to give us a familial gift of $120,000 to go towards a down payment.

I'm confused because I know gifts here in the USA are taxable to the "donor" and not the one receiving the gift but I read that there is no such thing as a "gift tax" in Canada (https://financialpost.com/moneywise/whe ... ift-letter)?

So does that mean her father in Canada can gift (wire or send a check) her the money here in the USA without him triggering a tax event? She has a handful of Canadian bank accounts still and has US ones as well.

As far as I can tell, my wife and I wouldn't be taxed since we are recipients. If he were American, I know her father normally he'd be taxed as the one giving the gift but since he's a Canadian citizen living in Canada where there are no gift tax rules, I don't know.
nelsona
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Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: tax on a familial gift for my Canadian wife from her family in Canada, where there is no gift tax

Post by nelsona »

your assessment is correct.
nelsona non grata. Non pro. Search previous posts. Happy Browsing :D
nelsona
Posts: 17140
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: tax on a familial gift for my Canadian wife from her family in Canada, where there is no gift tax

Post by nelsona »

What your wife simply needs to do is report (no tax) the gift on Form 3520.
nelsona non grata. Non pro. Search previous posts. Happy Browsing :D
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