Cash gifts on Canadian tax return.
February 19, 2010 6:45 AM Subscribe
Is this money considered a gift or income, and how do I claim it on my Canadian income tax return?
posted by anonymous to work & money (5 answers total)
In the early months of 2009, my awesome parents gave me about $4,000 for tuition and living expenses so I wouldn't have to get student loans in my last semester of school. When I finished school in August, they gave me about $7,000 to pay down some of my student loan. This money was given to me and I am not expected to pay it back.
Complicating factor: The cheques for each were issued to me through my father's company (he is self-employed) so I am curious about how I would go about reporting this on my tax return. Both were issued to me as regular old cheques, not payroll cheques (no source deductions were taken out, etc). I am not and have never been an employee of his company.
So my question is - is this considered a gift or taxable income? How do I go about claiming it?
We will get the chance to ask Dad's accountant about this, but probably not for a couple more weeks, and I'm trying to get a rough idea of what my refund will be if I have to claim this as income and pay source deductions on it. As the questions says, I'm in Canada. Thanks!