# Clarification on Gift Tax



## ab2010 (Mar 15, 2014)

Hello,

I had a question regarding the US Gift Tax that I was hoping to get some clarification on. I am a dual citizen (Canadian-American) living in Canada. My husband has no ties to the US. 

We are currently in the process of buying a house and our families are being extremely generous in helping us to put down a down payment. We will be receiving money from his grandmother (no ties to US), parents (no ties to US), my mother (no ties to US), and my father (dual Canadian-American citizen). My understanding of the gift tax is that I can receive up to $100,000 from the non-American family members without having to disclose or report this on my taxes for next year (although it will certainly be reflected on my FBAR reporting for next year). And my father (as an American) can gift up to $14,000 without having it impact his taxes. First of all, I just wanted to confirm that my understanding up until this point?

Secondly, I wanted to clarify that if my father gifted me $14,000 and my husband $14,000 would this allow him to remain exempt from the gift tax or is it $14,000 total that he can gift?

Thanks!


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## Bevdeforges (Nov 16, 2007)

Gift tax is assessed against the giver, not the recipient. (And even then, most gifts only need to be reported, with no taxes due. The taxes are assessed at the death of the giver, as part of the inheritance tax process.)

For your husband and family members who are not US citizens, there are no limits (other than whatever the Canadian tax authority might impose).

Your father, as a US citizen, can give you up to $14,000 (or whatever the limit is this year - something in that area) with no reporting necessary. For higher amounts, your father will have to file a gift tax return, but it's unlikely that any taxes will be imposed. 
Cheers,
Bev


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## BBCWatcher (Dec 28, 2012)

That's $14,000 (or thereabouts -- check the limit) _every calendar year_, so your father can simply be very generous in annual installments and thus without future inheritance tax consequences.


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## ab2010 (Mar 15, 2014)

Thank you both for your responses - the confirmation that I was understanding correctly is very helpful!!


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