...unless you are thinking about the attribution rules.
If you gift $$ to a relative (or friend) who spends it on something, then there is no tax.
If you gift $$ to a spouse or a dependent under 18, and that person invests the money, then the interest/dividends are attributed back to you; you report it as income and pay the appropriate tax.
If you gift $$ to a relative over 18 (not a spouse) or a friend, then the interest/dividends are not attributed back to you; the individual pays the taxes on the investment income.
We did spousal loans, fully documented, in 2010 since the prescribed minimum interest rate was at it's lowest point. Interest payments in Jan took place and we maintained a clear audit trail per the instructions of our accountant.
I have graduated from university for almost 2 years, but I have managed to save every month start years ago. And I'm planning to buy a small condo anytime soon. My parents are very kind to offer to help me with a large down payment, so I can save on the interest. I know bank will ask they to sign the cash gift form. And my parents live oversea.
I wonder if I will have to pay tax on it. Or is there a limit on up to how much I don't need to pay tax.
You're over 18 and living in Canada. This gift you mention from your parents is not taxable to you. Cheers!
B
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