Global News – Make the most of your money
At MCA Cross Border Advisors, our clients often ask us questions about the various considerations around cross-border gifting. Recently, Matt Altro, our President & CEO, was asked to answer a question submitted to Global News by one of their readers. The question was submitted by a Canadian resident and asks what the best way to gift money to US residents is.
You can see part of Matt’s answer to this question below, click here to view it on the Global News website.
Make the most of your money: “The Question”
“I have a question about how best to transfer Canadian funds to adult children living in the U.S. What is the best way to gift money to my two adult children who live in California? Rather than wait until my death and my estate being settled, I wish to gift funds to each of my two adult children now. What is the best way to transfer approximately $50,000 to each child? What is the best bank or money transfer agency to use? Are there any U.S. laws I need to comply with? Are there any tax implications? And, finally what exchange rate fees should I expect to pay? “ -123 Money Reader
“Gifting within a cross-border context can be complicated as you have to navigate tax laws in both countries. That said in your particular situation, you should be able to gift each of your children the $50,000 without triggering tax.
Gifting of cash is tax-free in Canada however it can lead to tax on the U.S. side if the donor is a US person for tax purposes. Based on your question, since the donor (you), is a Canadian citizen and resident and not a US person for tax purposes, there are no U.S. tax consequences […]