Gift from joint Canadian account

#2 12-10-2007, 12:43 AM

On Dec 9, 2:40 am, an...[at]webtv.net (Andrew Wasyluszko) wrote:
- quote -

> My father, a resident and citizen of Canada, would like to give us
> a gift of money. The funds are currently being held jointly with me in
> a Canadian bank account. My family and I reside in the state of
> Maryland.
> 1) Since the money is in both our names, does the IRS still
> consider this to be a "gift" and would there be any tax implications if
> the amount were over $10,000 US?
> 2) If so, would it matter if I were to directly withdraw the funds
> myself or if the amount is in Canadian dollars?
> 3) If a portion of this money was to be set aside for our six month
> old's college education, should the funds be separated into two parts or
> transactions?

1) No gift is made when your father puts the funds into a joint
account. The gift is made when you withdraw the funds. Your father
is not a U.S. citizen or resident. Thus, as long as the gift occurs
outside the U.S., no gift tax should be due regardless of the size of
the gift. If the gift exceeds $100,000, then it should be reported by
you on Form 3520, Part IV.

2) You should not withdraw the funds from a U.S. branch of the bank or
the IRS may be able to argue that the gift occurred in the U.S. and
U.S. gift tax could be due.

3) There is no need to separate anything as long as the gift takes
place outside the U.S.

#1 12-09-2007, 03:47 PM

parrisbraeside[at]yahoo.ca wrote:
- quote -

> On Dec 9, 2:40 am, an...[at]webtv.net (Andrew Wasyluszko) wrote:
> > My father, a resident and citizen of Canada, would like to give us
> > a gift of money. The funds are currently being held jointly with me in
> > a Canadian bank account. My family and I reside in the state of
> > Maryland.
> > 1) Since the money is in both our names, does the IRS still
> > consider this to be a "gift" and would there be any tax implications if
> > the amount were over $10,000 US?
> > 2) If so, would it matter if I were to directly withdraw the funds
> > myself or if the amount is in Canadian dollars?
> > 3) If a portion of this money was to be set aside for our six month
> > old's college education, should the funds be separated into two parts or
> > transactions?
> Your father is a citizen and resident of Canada. He is not subject to
> Gift Tax.
> You are the recipient of the gift - Gift Tax is payable by the giver,
> not the recipient. You do not need to do anything.
> All other points are moot in light of that.

Other than the last which isn't dependent on the first two at all -- for
that portion you might want to look into 529 plans. There could be some
local state tax savings available in that route (not related to the gift
per se, but against other income)...

--

--

12-09-2007, 01:21 PM

On Dec 9, 2:40 am, an...[at]webtv.net (Andrew Wasyluszko) wrote:
- quote -

> My father, a resident and citizen of Canada, would like to give us
> a gift of money. The funds are currently being held jointly with me in
> a Canadian bank account. My family and I reside in the state of
> Maryland.
> 1) Since the money is in both our names, does the IRS still
> consider this to be a "gift" and would there be any tax implications if
> the amount were over $10,000 US?
> 2) If so, would it matter if I were to directly withdraw the funds
> myself or if the amount is in Canadian dollars?
> 3) If a portion of this money was to be set aside for our six month
> old's college education, should the funds be separated into two parts or
> transactions?

Your father is a citizen and resident of Canada. He is not subject to
Gift Tax.

You are the recipient of the gift - Gift Tax is payable by the giver,
not the recipient. You do not need to do anything.

All other points are moot in light of that.

#-1 12-09-2007, 06:40 AM

My father, a resident and citizen of Canada, would like to give us
a gift of money. The funds are currently being held jointly with me in
a Canadian bank account. My family and I reside in the state of
Maryland.
1) Since the money is in both our names, does the IRS still
consider this to be a "gift" and would there be any tax implications if
the amount were over $10,000 US?
2) If so, would it matter if I were to directly withdraw the funds
myself or if the amount is in Canadian dollars?
3) If a portion of this money was to be set aside for our six month
old's college education, should the funds be separated into two parts or
transactions?

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