It's officially holiday-season time, and we are all consumed
by giving. And when it comes to what gifts to give your loved ones,
we tend to be overly generous. However, be prepared for not only
hugs and kisses from your family; it's possible that you may
also be giving yourself a gift in the form of a tax bill.
Unlike the U.S., Canada does not have a gift tax on gifts of
money or property to your family members (see discussion below).
However, there are a variety of other tax rules that can be
triggered by a gift between family members. Obviously these rules
would not apply to your typical gift such as a sweater or an
iPhone. But what if you wanted to make a grand gesture, and gift
the cottage property to your kids? Or gift a large amount of cash
to your family so they can invest on their own? That's when it
gets tricky. Subject to certain exceptions, the tax rules have two
main purposes: (1) to ensure that the CRA gets their fair share of
the tax on any accrued gain;
