Take the 2-minute tour ×
Personal Finance & Money Stack Exchange is a question and answer site for people who want to be financially literate. It's 100% free, no registration required.

I am a Canadian citizen living in Halifax.

My brother wants to help me buy a flat and plans to transfer money as a gift ($150,000 USD) from the States to Canada.

Is the transfer taxable?

share|improve this question

1 Answer 1

It is taxable to your brother (assuming he's a US tax resident). Transfer of any amount over $14k per year to any single person (other than spouse) triggers gift tax liability.

share|improve this answer
1  
Also, there is an exception to the gift tax that reduces your tax free estate when you die. For a gift of $150K, I'd look into that to avoid taxes due now. –  Alex B Jul 20 at 2:16
    
right, Alex. A simple form that helps avoid any tax due on gifts up to $5.34M, but goes against that lifetime number. –  JoeTaxpayer Jul 20 at 2:25
    
@AlexB yes, but essentially it is the same tax. Only the question of when you pay it. By the way, the "lifetime exemption" is mandatory, apparently. –  littleadv Jul 20 at 5:17
    
@littleadv If you give a gift now of $150K, giver will owe gift tax. If you fill out the form making it part of your estate and your estate is < $5M (most people) giver will owe 0 taxes now and 0 taxes at death as part of their estate. –  Alex B Jul 21 at 15:39
    
@AlexB the question was "is it taxable?". The answer was "Yes it is". As to how much money the brother has and how much of the exemption already used - I don't know. –  littleadv Jul 21 at 16:05

Your Answer

 
discard

By posting your answer, you agree to the privacy policy and terms of service.

Not the answer you're looking for? Browse other questions tagged or ask your own question.