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Name: DXXXXXXXX XXXX
the_email: [email protected]
My question is: Applicable to both US and Canada
QUESTION: Our widowed son who lives and works in Boston has a mortgage on
his house over there. Can we help him out with cash to pay off his mrtg?
Does he have to declare this as income?
Do we have to declare it on our tax papers?
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david ingram answers:
There is no limit to how much a Canadian can give their child when the child
lives in Canada.
An American citizen can give their child up to $11,000 US per year without
any tax consequences to either party.
If your son is in Boston, you could easily be US citizens living in Canada
so I will state that the easy answer is that you could give him $11,000 US
and your husband could give you son $11,000 US per year for as long as you
wish with no tax consequences.
If you are a Canadian with your son living in the US, you should stay with
this amount. Although I have never seen it enforced when A Canadian gives a
gift to their US child, there is a strong suggestion / rule that if the
giver does not file a gift tax return, the recipient of a gift is required
to pay the gift tax which runs from 18% up to 55%.
Stick to $22,000 US per year between yourself and your husband and there
will be no questions asked of anyone.
If you decide to do this, do it by check so the transfer is clearly shown
through the banking system,.
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