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| *Ostroff, Fair and Company>>>Canada Taxes |
Can a Canadian receive money from a US (taxes paid) source without it being taxed again? |
If I receive money from an American relative on an annual basis and tax has been paid on the funds in the US as US earnings, is it taxed again as earnings by me as a Canadian recipient? If so, why? Wouldn't it then be double taxed? Could it be considered a monetary gift if received on a regular basis and not claimed as a tax deduction at the outsource? No, it wouldn't be considered "earnings" so you wouldn't be taxed at that level. It is nothing more than a gift. The short answer is, you'll have to add it to your yearly income, and then pay taxes on the total. A monetary gift is only a one-time thing. All mothers receiving child support would LOVE not to have to pay taxes on it. After all, their ex's have already paid income tax once, right? Well, the system just does not work that way. Your very best bet is to get in touch with an income tax specialist. He/she can steer you through the process correctly. Why are you receiving this money? Child support is not taxable in Canada if received from a US resident. Is it a birthday gift? You did say once a year. Gifts are not taxed. Is the relative renting a house from you? Then that is rental income and is taxable, although expences could be claimed. Call a tax preparation company to get the right answer for your situation. |
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