2

I would like to give some money to support a business that is family-owned (by my parents). I am not personally involved with the business nor am I an employee, but I want to give them some money for infrastructure upgrades.

Some readings suggested that I could give money in the form of a loan or an investment, but I don't want any money back. This is intended as a gift. Another option could be to just write a personal check to the owners, and they can invest in their own company as they wish. What is the proper way to do this?

Additional info:

  1. Jurisdiction is Canada
  2. Cash given would be likely under $5,000
Improve this question
0

1 Answer 1

Reset to default
6

In Canada, there is no gift tax. You can freely give a gift to your parents, and it will not even need to be reported to the government. They will be able to simply contribute their funds to their business in whatever way makes the most sense to them [this isn't relevant for you, just for them]. This assumes you are older than 18; younger than 18, there may be other considerations.

Improve this answer
2
  • I am not familiar at all with Canadian tax law, but are you sure that a gift to a company wouldn't be taxable income for the company? Otherwise it would be a pretty good way to commit tax fraud or even money laundering.
    – Philipp
    Commented Feb 4, 2020 at 15:49
  • 8
    @Philipp The suggestion was to gift it to the parents, not the company. They can then (presumably) just inject cash into the company in whatever way seems best (increase in owners equity; loan etc.).
    – TripeHound
    Commented Feb 4, 2020 at 16:49

You must log in to answer this question.

Not the answer you're looking for? Browse other questions tagged .