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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?

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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.

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    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, 2014 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. Jul 20, 2014 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, 2014 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, 2014 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, 2014 at 16:05

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