If I was to receive a cash gift of $50,000 do i have to pay tax on that gift ???

Question

If I was to receive a cash gift of $50,000 do i have to pay tax on that gift ???

Answer 1

No, gifts to you are never taxable. The person who's giving the money to you, though, needs to report it and pay taxes on it if it's that much.

The IRS allows people to give away up to $12,000 per person per year tax-free. If you don' t need all the money right away, maybe the person giving it to you could break it up into yearly installments? Then they wouldn't have to pay anything.

EDIT: Dangit. I didn't notice this was in the "Canada" section. OK, so ignore everything I said above. Unless you're in the United States. Then I meant it.

Answer 2

No in Canada there is no gift tax (unless the gift is from your employer).

Answer 3

I'm guessing the government would expect you to.  Personally I don't see it as any different than getting money in birthday cards or money as wedding gifts...you don't have to claim that money, so you shouldn't have to claim it if it's one cash gift of $50,000.  

Answer 4

I guess. But many people wouldn't..Because it's cash..If you claim it on your taxes of course you would pay taxes...Legally I believe you are supposed to claim even cash.  I wonder if most people do though..  

Answer 5

You do not have to pay tax if (a) you are an adult, and (b) the cash gift is from your parents or relatives for kindness of their hearts.  If you are not an adult (i.e., a minor), you are still not taxable on the amount from your relatives, but the "income on income" from the cash gift would be taxable to you while the income from the cash gift would be attributed back to the person providing the gift under section 74.1 of the cdn income tax act.

If the cash gift is received resulting from your employment (e.g., award or bribe), or from your services rendered or business products transferred, the "gift" is taxable.