REVscene - Vancouver Automotive Forum

i-VTEC · 07-21-2013, 10:44 PM

My TFSA isn't max, can my brother or my girlfriend "gift" me money to put in my TFSA. Would that amount be taxable?

I know "gift" isn't taxable however, if you didn't put it as investment. But, the interest receive from the TFSA is tax free so...?

SoNaRWaVe · 07-21-2013, 11:35 PM

if gift was taxable, i would be hooped. i'm chinese and i have been receiving red pockets all my life. if i were to put that money into tfsa, then what?

i don't think the bank ever questions you where the money comes from when you put in an investment, unless its in a ridiculous amounts.

Hamburger · 07-22-2013, 03:28 AM

Simple answer is yes. They give you money. Deposit it to your account then tell bank you want to make contribution to tfsa. Its all outlined when you opened your tfsa.

i-VTEC · 07-22-2013, 07:19 AM

Quote:

Originally Posted by SoNaRWaVe

if gift was taxable, i would be hooped. i'm chinese and i have been receiving red pockets all my life. if i were to put that money into tfsa, then what?

i don't think the bank ever questions you where the money comes from when you put in an investment, unless its in a ridiculous amounts.

The amount is no more than $10,000

Quote:

Originally Posted by Hamburger

Simple answer is yes. They give you money. Deposit it to your account then tell bank you want to make contribution to tfsa. Its all outlined when you opened your tfsa.

Answer is Yes for what? That the money I received as a gift is taxable income since I'm putting into TFSA?

riley_ · 07-22-2013, 08:06 AM

Simple answer - No

The money that you receive from your brother will not be taxed if he gives you the money to put into your TFSA account as well as any interest earned from investments (mutual funds etc..) within your TFSA.

How is your brother going to give you the money? account transfer? cash? emt? If you're brother transfers the money into your account, simply transfer that money into your TFSA using the web-interface banking or going into the branch. If he's giving you cash, just go into the branch and tell the teller you would like to deposit this money into your TFSA account. As long as you don't go over the $25,500 threshold (assuming you were at least 19 or 18 I forget in 2009), you won't be facing any penalties.

There are no T-forms issued by your financial institution regarding your TFSA so none of it is taxable.

i-VTEC · 07-22-2013, 08:10 AM

Quote:

Originally Posted by riley_

Simple answer - No

The money that you receive from your brother will not be taxed if he gives you the money to put into your TFSA account as well as any interest earned from investments (mutual funds etc..)

How is your brother going to give you the money? account transfer? cash? emt?

Bank Transfer or Write he'll write me a cheque, memo states Gift.

riley_ · 07-22-2013, 08:15 AM

Quote:

Originally Posted by i-VTEC

Bank Transfer or Write he'll write me a cheque, memo states Gift.

It doesn't even have to say gift.

Just deposit the cheque and say you want to deposit the funds into your TFSA. The bank will be more than happy to pay you 1.05% (big five at least

)

Ulic Qel-Droma · 07-22-2013, 01:37 PM

you won't be taxed on money "gifted" to you officially (like a memo on the cheque) or unofficially, like a big wad of cash.. or just... even a cheque for no reason.

4444 · 07-22-2013, 02:11 PM

>18 no attribution (means no tax)

Cassijon · 07-25-2013, 09:43 AM

im sorry, but how would anyone think that the canadian govt would tax you on a gift you receive here.

they dont even tax winnings (casino, game show, contest etc)

i-VTEC · 07-25-2013, 10:16 AM

Quote:

Originally Posted by Cassijon

im sorry, but how would anyone think that the canadian govt would tax you on a gift you receive here.

they dont even tax winnings (casino, game show, contest etc)

Arn't those winning received by cash?

Lottery for example is consider taxable (winning receive in a form of cheque from BCLC i think)

And in my case, I am not receiving by cash. It will most likely be account transfer or by cheque. Therefore the Government can track where the money is from.

Anyhow I am not even sure the government would care to investigate under 10K of transfer rather they are interested in then 100K+ or even millions transfer

Cassijon · 07-25-2013, 10:58 AM

Quote:

Originally Posted by i-VTEC

Arn't those winning received by cash?

Lottery for example is consider taxable (winning receive in a form of cheque from BCLC i think)

And in my case, I am not receiving by cash. It will most likely be account transfer or by cheque. Therefore the Government can track where the money is from.

Anyhow I am not even sure the government would care to investigate under 10K of transfer rather they are interested in then 100K+ or even millions transfer

even lotto is not taxable. only the interest the money makes when in the bank is taxable.

bobbinka · 07-25-2013, 07:21 PM

Quote:

Amounts that are not taxed
You do not have to include certain amounts in your income, including the following:

-any GST/HST credit or Canada child tax benefit payments, as well as those from related provincial and territorial programs;

-child assistance payments and the supplement for handicapped children paid by the province of Quebec;

-compensation received from a province or territory if you were a victim of a criminal act or a motor vehicle accident;

-lottery winnings;

-most gifts and inheritances;

-amounts paid by Canada or an ally (if the amount is not taxable in that country) for disability or death due to war service;

-most amounts received from a life insurance policy following someone's death;

-most payments of the type commonly referred to as strike pay you received from your union, even if you perform picketing duties as a requirement of membership;

Note
Income earned on any of the above amounts (such as interest you earn when you invest lottery winnings) is taxable.

As per Canada Revenue Agency