I wanted to know what's the tax implication if I am a US citizen gifting money to someone in Canada who is neither a Canadian nor a US citizen. Does the gift tax applies? Share your resources please.
Thanks
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Sign up to join this communityI wanted to know what's the tax implication if I am a US citizen gifting money to someone in Canada who is neither a Canadian nor a US citizen. Does the gift tax applies? Share your resources please.
Thanks
The US gift tax applies to the donor, it doesn't matter who/where the donee is (except for certain exempt donees like charities, or specific qualified donations like tuition or medical bills payments).
You can read more details in the instructions for the form 709, including the exemptions and exclusions.