Gift to US resident taxpayer (US Citizen) from a Canadian Parent

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Each year I help over 500 clients file their Canadian and US tax returns as well as plan for both their Canadian and US investment accounts. I also regularly help new US clients plan for their move to Canada.

Feel free to reach out via email at phil@philhogan.com or by phone or text here 250-661-9417.




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
Donna

XXXXXX

Answer

Hi XXXXXX

As long as you are not a US taxpayer (US citizen or green card holder) 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 US tax considerations to worry about.

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

Hope that helps.

Phil

Phil Hogan, CA
250-661-9417

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