OMG UPDATE: Question? Answer.

Updated on Tuesday, August 4

#7329

QUESTION:  My parents want to transfer a large amount of money into my bank account to last for the upcoming year, if they do, will the bank ask questions or anything like that? I'm with CIBC.

10 comments

  1. Yes, they can transfer it as a "gift" you won't have any problems.

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  2. Oh boo hoo, I'm rich and spoiled and I don't want to have to potentially pay taxes or explain myself.

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    Replies
    1. Why do you care? When and if you're rich someday you wouldn't want someone judging you because you have money. Not everyone is born rich but everyone should strive to be richer/successful. Be happy with what you have, there's billions with less

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    2. Because I have a fundamental problem with the children of rich parents being able to live a much better life than those without. It's completely unfair and YES I am bitter.

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    3. Get over it. Get rich and give your kids the life you wanted

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    4. You should run for president in the USA with that attitude!

      JUST GET RICH GUYS

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    5. Get rich doesn't just mean over night. Put the work in dickhead. It may come easy to some it may be grueling for others. Why complain over what someone has and what you don't? Put the work in and get there as well or stop complaining. You're at a uni in Canada, you have opportunities people would kill for

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  3. I believe any withdrawls over 10k, or something like that banks have to report to the government (though probably not actually do anything), not sure about transfer though. As long as it is legitimately obtained money there won't be any issue. On your tax statement, you should be claiming this amount as income and i think your parents can reduce their income by this amount or something along those lines.

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  4. depends what you think a large amount of money is. If you're talking about enough to pay for tuition and rent etc then probably no alarms are gonna be set off automatically or anything, but yeah there's tax implications. Tax evasion fines are high (and get served with a side of jail) so just do the proper declarations, and better yet just have your parents pay your bills themselves. If your parents pay for everything just have them issue a joint credit card with them that they pay for. Have them write your rent cheques and have them make the bank transfers. You will save yourself the headache.

    Don't do what 1 suggested you only get one instance of a gift for love and affection and you need to save it for when your parents are dying and you're trying to avoid the 50% estate tax.

    If your idea of a large amount of money is say like 100k and your parents are uber rich and buying you a bmw, luxe apartment, and servants then yeah you're going to set off flags.

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  5. Theres no such thing as gift tax in Canada... As long as you don't earn income from your parents $ ur good. They could give u a million $ cash, as long as you blow it on hoes & cars (or tuition, rent etc) ur good. But if u invest it and earn income on it... then you will face some tax issues. Now if they gift you non-cash (ie a house) then theres some tax issues.

    TLDR: Cash transfer from daddy is good as long as your not using it to earn income.

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