Gifting

Giving never felt this good.

Giving a financial gift to an adult child can have significant tax advantages. If you are in the highest tax bracket, this strategy may reduce the total tax paid on subsequent income from the gift. The gift can be used for many purposes, including RRSP contributions, to pay off a mortgage, to fund educational expenses, or just for general spending or investment purposes.

When property is gifted, transferred, or loaned to a minor child, any income subsequently generated by the assets will be taxed in the hands of the parent or grandparent. To optimize the benefit of gifting to a minor child, it is preferable to gift property that generates capital gains tax, as capital gains are exempt from CCRA’s attribution rules.

The Burak Hannon Brojde Group can help you review certain fundamental questions to determine whether gifting is an appropriate strategy for you.