$ Gift $ buying a house?

[samurai88]

Finding out the following for a friend :

A father may be giving my son $ 80 k to find and buy a house for his family, but they don't want it until they find something.

If he gave the gift early and the son didn't find anything before the end of the tax year, would the son still have to pay income tax on that ?

Thanks in advance.

[ghostryder]

If he gave the gift early and the son didn't find anything before the end of the tax year, would the son still have to pay income tax on that ?

No. There is no gift tax in Canada.

[tng11]

No. There is no gift tax in Canada.

I have another question to tack on to that. My parents gave me a large $ gift about 5 years ago when I was 14 and I have invested that money and made some capital gains as well as interest income ($6,000) this year, but my income still remains below $9,600. Would I be subject to income attribution rules, as technically the money came from my parents?

[Thalo]

I have another question to tack on to that. My parents gave me a large $ gift about 5 years ago when I was 14 and I have invested that money and made some capital gains as well as interest income ($6,000) this year, but my income still remains below $9,600. Would I be subject to income attribution rules, as technically the money came from my parents?

Any interest earned before you were 18 should have been taxed in your parent's hands, however capital gains and interest since you turned 18 are taxed in your hands.

[setell]

Any interest earned before you were 18 should have been taxed in your parent's hands, however capital gains and interest since you turned 18 are taxed in your hands.

Interesting, I thought it would be taxed at the child's rate hence it's beneficial for some parents to 'gift' their child some money and invest it under the childs name as they won't make enough to get past the basic deductions amount.