General question about tax / money deposit

[cinvest2021]

Hello,

I have my father made a deposit of money into my bank account. It is for hin to dispose of this money in case of medical treatment.
Medical treatment did not happen (in fact due to Covid, it has been postponed so many time), so money is now staying idle in my bank account.

Question is, is this deposit to be considered as income by CRA? in other words, do I have to pay some tax on it?

In fact it is relatively small amount of money, but I just wanted to get my facts straight on this point.

Thanks in advance for any orientation.

 

[s23srinivas]

Hello,

I have my father made a deposit of money into my bank account. It is for hin to dispose of this money in case of medical treatment.
Medical treatment did not happen (in fact due to Covid, it has been postponed so many time), so money is now staying idle in my bank account.

Question is, is this deposit to be considered as income by CRA? in other words, do I have to pay some tax on it?

In fact it is relatively small amount of money, but I just wanted to get my facts straight on this point.

Thanks in advance for any orientation.

You may treat it as a "gift" to certain level and avoid any tax on it. There are many interesting articles by financial consultants/institutes you will find on this topic if you search google.

All the best!

 

[cinvest2021]

You may treat it as a "gift" to certain level and avoid any tax on it. There are many interesting articles by financial consultants/institutes you will find on this topic if you search google.

All the best!

Thanks for your input.

I read this article:
https://turbotax.intuit.ca/tips/tax-tip-if-i-give-cash-to-my-kids-is-it-tax-deductible-in-canada-5081

Can it be applied (no limit to the gift amount)? is there an age limit for the children to be eligible?

 

[s23srinivas]

Thanks for your input.

I read this article:
https://turbotax.intuit.ca/tips/tax-tip-if-i-give-cash-to-my-kids-is-it-tax-deductible-in-canada-5081

Can it be applied (no limit to the gift amount)? is there an age limit for the children to be eligible?

In case of transfer over C$10000, it has to be reported by the bank/transferring company to a body called FINTRAC which I believe will have some interaction with CRA. So indirectly there is some limit to the gift amount due to this and/or limit by the transferring company. As far as age goes, I believe there is no limit since large/suspicious amount of "gift" will get reported anyway.

Going by your words that the money is for medical treatment which is on hold there should not be any tax implication and not need to be reported to CRA as an income.

On a personal front, if it was I getting less than C$10K I will not worry in the short term about CRA and any tax implication at all provided I know the background of the money being transferred is legal at source and not an income generated from activity outside the country that was not reported to CRA while filing the taxes. That's based on my circumstance while I write this. Not knowing much about your situation, I will suggest to get advice from an accountant to clarify about the specifics.

All the best. Stay safe.

 

[cinvest2021]

Thanks for your reply. Much appreciated.