# Receiving Stocks as Gift from U.S.



## DavidSuzuki (Sep 25, 2013)

I live in Canada.

A relative living in the US would like to gift me some stocks rather than cash.

The advantage of gifting me stocks is that he would not be liable for capital gains tax in the US on his gift (up to a certain point).

As a Canadian living in Canada, I won't have to pay gift tax in Canada. I think that I might also be able to avoid paying the capital gain
in the US too, as I don't reside there. Not sure about it, though. Any thoughts?

Also, what is the best way to transfer US stocks to me? I have a couple of Canadian trading accounts. Is it possible for my relative in the US to transfer US stocks directly to my Canadian trading account? Or do I need to open up a US trading account (if possible), and do two transfers: first to my US account (if I can get one), and then from my US account to my Canadian account.


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## humble_pie (Jun 7, 2009)

i doubt that the relative can "gift" his stocks to you without regular US capital gains tax being owed, unless you are a registered charity on the list of those that are recognized by the IRS.

plus i wonder why you are using this particular username. Presumably you are not the renowned foundation & they might be annoyed at seeing their name frivolously tossed about.


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## DavidSuzuki (Sep 25, 2013)

Thanks for sharing your doubts. I was under the impression that the first 14K might be excluded from taxes:
http://www.irs.gov/Businesses/Small...ed/Frequently-Asked-Questions-on-Gift-Taxes#5

I chose the user name for reasons that are personal.

Never heard about the David Suzuki Foundation until you mentioned the 'renowned foundation'. Anyhow, there's no 'Foundation' in my handle.

I am after information, not speculation.


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## Guban (Jul 5, 2011)

DavidSuzuki said:


> Thanks for sharing your doubts. I was under the impression that the first 14K might be excluded from taxes:
> http://www.irs.gov/Businesses/Small...ed/Frequently-Asked-Questions-on-Gift-Taxes#5
> 
> I am after information, not speculation.


This refers to gift taxes, not capital gains taxes.


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## humble_pie (Jun 7, 2009)

i thought it was exclusion from US gift taxes only?

i don't know about the capital gains, in some cases i believe this can be transferred to an immediate relative such as son or daughter, but transferring to a person living in another country who is beyond the reach of the IRS to eventually tax such foreign person's capital gains upon disposition might be problematic ...

u may be looking for information that is beyond the capability of a canadian chat forum.


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## OhGreatGuru (May 24, 2009)

It sounds to me like your relative wants to gift you the stocks instead of cash, because by avoiding the paper trail of a sale, he hopes to evade the capital gains tax on this "disposition". Theoretically his tax liability is not your problem. But if IRS decides you were an accomplice in his tax fraud they might come after you for it.


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## Retiredguy (Jul 24, 2013)

u may be looking for information that is beyond the capability of a canadian chat forum.[/QUOTE]


.... I agree the linked article says....The laws on Estate and Gift Taxes are considered to be some of the most complicated in the Internal Revenue Code. For further guidance, we strongly recommend that you visit with an estate tax practitioner (Attorney or CPA) who has considerable experience in this field.


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