Gift tax
Moderator: Mark T Serbinski CA CPA
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- Posts: 2
- Joined: Mon May 22, 2006 5:16 pm
Gift tax
I'm a Canadian citizen on a GC living in the US. My father, a Canadian living in Canada, wants to give me $20000 Cdn by drawing a cheque from his Canadian bank which I will deposit in my American bank account. Is he subject to the Canadian equivalent of the "gift tax" (which I believe is $11000 in the US). How does the IRS view this money (after rate conversion) popping up in my bank account ? Is it taxable as "income" ? What is the best strategy to minimize any tax impact for him and myself, if any ? (I also have a bank account in Canada. Would it be better if I put the deposit the cheque in that account and then somehow transferred it to my American account. Is my father still liable for a "gift tax" in this case ?)
Off subject a bit--but if you walk into a USA bank with a CDN cheque you wont be getting the best bang for your buck!! I'm a CDn greencard holder in the USA. In the past and occasionally still do is transfer $$ from my Cdn acct to my Wachovia account using Customhouse. No fees and they are usually around 2 cents better then what wachovia was giving me. Another way might be if ur father exchanges it into American at the CDN bank and gives you a draft (not sure if that is the correct term??) to deposit into ur USA acct. Cheers