My question is: Canadian-specific QUESTION: I am looking for information on gift tax. If the gift is coming from overseas and I am a resident of Canada, do I have to pay tax if it is over $10,000? --------------------------------------------------------------------------- david ingram replies: The gift tax limit for the US for 2007 is now $12,000 and was $11,000 in 2006. Canada has had no Federal Gift tax since 1972. It is one thing that Wikipedia is in error in because it suggests that Brian Mulroney abolished it but it was abolished 10 years before Mulroney. Different provinces abolished it later. BC for instance, abolished gift and inheritance tax in 1976. In any case, it is the "giver" of the gift that pays the gift tax. The US is overseas although we do not think of it as overseas. If you were saying that the gift is coming from the US and the amount is over $12,000 in 2007, it is the US giver who has to worry about paying the gift tax. I do not know a lot about other jurisdictions and you will have to check the country and state. For instance, although the Federal Brazilian Government has no estate or gift or inheritance tax, the state of Sao Paulo does. France does have a gift and inheritance tax and these are dealt with in the US / France Income Tax Convention (Treaty). In the case of Canada, we trade Capital Gains tax paid on death for inheritance tax and the US / Canada Treaty allows them to be used as foreign tax credits against each other. ------------------------------------------------------- David Ingram's US / Canada Services US / Canada / Mexico tax, Immigration and working Visa Specialists US / Canada Real Estate Specialists My Home office is at: 4466 Prospect Road North Vancouver, BC, CANADA, V7N 3L7 Cell (604) 657-8451 - (604) 980-0321 Fax (604) 980-0325 Calls welcomed from 10 AM to 9 PM 7 days a week Vancouver (LA) time - (please do not fax or phone outside of those hours as this is a home office) email to taxman at centa.com <mailto:taxman at centa.com> www.centa.com <http://www.centa.com/> www.david-ingram.com <http://www.david-ingram.com/> Disclaimer: This question has been answered without detailed information or consultation and is to be regarded only as general comment. 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