How much money can I receive as a gift without paying income tax in Canada?

Question

How much money can I receive as a gift without paying income tax in Canada?

Answer 1

There is no 'gift tax' in Canada. If the gift is cash, and coming from a family member, there is no tax on either end of the transaction, no matter what the amount. If the gift is then invested, and you (the receiver) are over eighteen, then the investment income would be taxed in your hands.

If you are under eighteen, attribution rules would apply. The investment income (interest, dividends, but not Capital Gains) would be taxable in the hands of the person who gave you the gift.

Answer 2

Assuming the gift is from your employer is is cash then,

Every year you are to receive up to $ 100.00 tax free as a gift from your employer as long as your employer does not claim the amount as an expense on his side. Any amounts over 100.00 will be taxed regardless if employer claims it or not on his business.

That being said, there is one exception to this rule, in that in a year in which an employee gets married, he may receive two gifts of up to 100.00 each time tax free, one for his wedding and one for another occasion (anniversary of employment, birthday etc.)

Answer 3

Depends what the gift is for and were it comes from.  If it's a gift from a parent/friend and it's after tax dollars then there is no limit.  Example if for you birthday your parents give you 10,000 it's fine as long as they are not attempting to deduct the gift for tax purposes on there tax returns through a business statement.

If the gift is from a business/employer then it's taxable from dollar 1