My aging parents have recently sold their home of 30 years and have purchased a smaller home of much less value. Mom has asked to me find out how much money she can give her children and grandchildren without anyone having to pay too much tax.
david ingram replies
There is no gift tax in Canada and the sale of the family home is tax free as well.
Assuming that there was not a second home such as an expensive summer cabin or ski chalet as well (if there was, they can claim one or the other tax free but not both), and the money they are giving away is from the sale of their home, they can give away any amount they want.
They are not taxable and the recipient of a cash gift pays no Canadian tax.
The reply would be different in the USA. In the USA up to $250,000 per person can be income tax free but only $11,000 per child can be given away without gift tax being incurred. Then there is the Generation Skipping Tax which applies to gifts to grandchildren.
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