Taxation on Canadian Monetary Gift

Subject:        Taxation on Canadian Monetary Gift to US resident
Expert:         taxman at centa.com
Date:           Friday June 02, 2006
Time:           10:16 PM -0700
QUESTION:
I'm a Canadian citizen with primary residency in Washington State and a
residence in California.  My father, a Canadian living in Alberta, plans to
sell property he owns in that province and distribute the proceeds equally
between my 2 siblings (CDN residents) and me.  The amount I'll receive will
be in the low 7 digits.  What tax ramifications do I face? What, if
anything, can I do now for the purpose of minimizing taxation knowing that
the property will be sold within the next 4-6 months?  What options do I
have and their ramifications?  For example, will changing residency make a
difference?  Is there a certain way my father should treat distribution of
the proceeds to me vs. my siblings?
Thanks for your help.  Your advice is greatly appreciated.
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david ingram replies:
If your father is not a US resident or a US citizen, he can give you
whatever he wants with no tax liability to him.
There is no tax liability to you as the recipient of the gift.
This would be different if your father was an American or a US resident.  In
that case, if he did not pay the gift tax, you could be asked to pay it as
the recipient.
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