https://accufile.ca/library/is-a-gift-of-money-taxable-in-canada
IS A GIFT OF MONEY TAXABLE IN CANADA? | OUR GUIDE ON WHAT IS TAXABLE
September 09, 2021 by admin 0
Many Tax filers in Canada are always questioning whether gifts such as money to and from family is taxable in Canada. If you have received money from a friend, and or relative what are the tax laws in Canada behind this? This also works the other way if you have given your children a large sum of money is that considered taxable for them? Our article below will cover everything about is a gift of money taxable in Canada?
Is a Gift of Money Taxable in Canada?
The answer to this question up front is no. The Canada Revenue Agency has no "gift tax" in Canada so if you have given or received money from someone there is no tax to be paid on this amount. In addition, there is also no deductible if you are trying to expense what was given to your family and or friend. The question as to whether or not these type of funds are taxable is very confusing as the IRS in the USA does charge on these monies. So conflicting information is easily heard as we share the same media and information with our friends across the border. So the basic answer for money received or given is that it is not taxable. As long as there was no product and or service exchanged between both parties.
https://www.canada.ca/en/financial-consumer-agency/services/financial-toolkit/taxes/taxes-2/4.html
The types of income listed fall into four main groups:
general income, including income from employment, pensions and other social benefits, interest, etc.
income from dividends paid to company shareholders (Dividend income receives a special deduction that can reduce the rate of taxation. However, the effect of the deduction varies.)
income you make by selling shares or other property, which are taxed on only half the profit made on the sale (except your home, which is exempt from tax when it is your principal residence)
income from insurance, gaming and gifts, which are generally tax-free (except gifts from your employer, and some gifts of capital, such as company shares—if the gift produces income, then the income is usually taxed).