Cross Border Tax Q&A

Canadian gifting money to their US citizen Son

November 7, 2010

3523

I have helped hundreds of people successfully navigate from the US to Canada. If you're thinking of moving or retiring to Canada contact me today to chat about your plans.

I can be reached via email at phil@philhogan.com, by phone at 250-661-9417 or through my contact page here.

I look forward to speaking to you soon.

Phil Hogan, CPA, CA, CPA (CO)
Cross-Border Tax and Investment Specialist

Question

Hello.. Can you please answer for me: I am Canadian, and my grown son lives in the USA, and recently became a US Citizen. If I “gift” him money (such as for a down payment on a house).. will he be required to report this on his taxes?
I searched everywhere on the IRS website without any luck.
Thanks for your help

XXXXXX

Answer

Hi XXXXXXX

As long as you are not a US citizen and you don’t plan on gifting your son more than $100,000 (would need to file form 3520) you shouldn’t (or you son) have any tax considerations to worry about.

Only the donor (if a US taxpayer) will be liable for gift taxes.

Hope that helps.

Regards

Phil

Phil Hogan, CA
250-661-9417

1 COMMENT

John November 8, 2010 At 7:06 am

Hi Phil

If I (US citizen) gift money to my Canadian wife (non-US person) will I be required to pay gift tax?

Thanks

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