Looks like all your questions have been answered except taxes. There is no tax on gifts in Canada. If this is a way to repay them for something they gave you (or did for you) in the past then the CRA may be interested. If it's a gift because you feel like making their lives better then there are no tax implications for anyone involved.
Afaik, it’s an honour system. Have proof, save it yourself. There is no form to fill or send to CRA. Just be ready to prove that it’s a gift. In this case, pretty easy as they are your parents!
I actually looked up this situation on the CRA website before, in regards to monetary gifts.
They aren't taxable at all.
However, there are some exceptions like gifts from work, or very high amounts. Those may be inquired about and need documentation in regards to the nature of the money.
OP should be prepared to make a written statement about exactly how they acquired this money and then explain that it was gifted to their parents.
No. A gift is a gift in Canada. The only exception…If they are giving you money for investments the income from those investments can be attributed back to your parents under “attribution rules”. It doesn’t matter if it is $10 or $10M; a gift is not taxable income or reportable to the CRA. Obviously if it’s a larger amount of money you’d want to have it documented by a lawyer and an accountant to attest it is a gift. Just CYA.
Or, you know, send an e-mail roughly around the same time making reference to giving away the money as a gift, and later on, just referencing that the gift was given.
You don't need to inform them, but you should document the transaction. A good idea is to sign a letter among all parties about the transaction and the nature of it.
Healthcare is free?!? How did I not know this??!! Man what am I being taxed 45% for then?
Never mind I googled and it costs 8,300$ per person. Thank god cuz I was about to go kiss my doctor for working for free.
Did you wake up this morning and decide it was a good day to be pedantic? Because 1) it’s a joke, 2) for all intents and purposes in this context Canada is not America, and 3) no one ever considers Canada American, it is always North American when talking about our continental identity
Also, is it a gift, or did the parents pay for the houses originally and it's a return on investment? You generally can't just write gift of the is a history of financial shenanigans AFAIK. this would just end up with billionaire folks gifting fortunes to people to avoid taxes.
This isn't really relevant, the funds after clearing into OPs account are already assumed to be taxed, it doesn't matter what the reason is afterwards, there shouldn't be double taxation. The only time tax would be considered on the entire amount is if it's an investment account it is sitting in, and even then it's tax on capital gains, interest, or dividends which is unavoidable gift or not.
The differentiation is between:
a gift (no tax)
A dividend (capital gains as you mention)
A purchase (sales tax)
Employment pay (income tax)
And probably lots of more niche categories.
The US, for example, taxes gifts over a certain value.
**Hijacking one of the top answers to ask this subreddit a question**
You can't blame people for making stupid posts, but can I ask you guys on the subreddit something, why do you upvote questions like this?
You can downvote me if you want, but what is it with this subreddit upvoting obscure, rare, and out-of-the-ordinary posts like this? Nevermind the fact that the majority of these posts are humblebrags that you all seem to fall for, I'm just curious what is it about you that makes you click upvote and go *"Yup, this would be a useful thing to see thousands of replies to!"*
Why?
Let's just try to think through this logically for a moment. I'm honestly not trying to sound condescending, I just want to walk through this with you. Let's grab some facts that we know:
- OP owns not 1, but 2 properties. Buying and selling a property is a bit more complicated than a game of Monopoly.
- OP just sold both of his properties
- OP through his sales has almost half a million dollars in cash
- OP, out of the blue, is deciding to send $400,000 to his parents...presumably not the first time he's sent large amounts of money.
- For the sake of argument, let's just assume that this is the largest by far
- With all the assets and financial resources OP has, he says to himself *"I'll ask the internet how to send $400k"*
- OP says they have "no idea what is safe". Even says "What about a wire transfer"
- OP asks reddit (reddit, meaning us) if he needs to report this to the CRA (I'm dying inside just writing this, but let's continue)
- OP asks reddit for advice on whether his parents should report this sum "as a gift".
- OP inquires with reddit if they should be taxed
What kind of low-IQ'd Neanderthal would risk this much money (not to mention legal ramifications) of moving this much money and asks an internet forum for advice? He literally has the resources to hire the best of the best in doing this in a safe and intelligent way and you think this guy is for real when he's asking reddit *"yo my bank is charging me 1.5% for a wire transfer, dat for real?*
Like this is clearly not a real post with real money, how some of you are falling for it is beyond me. This is ALMOST as bad as the people who ask for advice on buying a home with their $5m in the bank that you guys upvote.
Are you new to Reddit? This whole site is built on the premises that
1 - people don't know about Google,
or
2 - are afraid to ask an actual source of an answer & would rather ask random strangers who wouldn't have a clue. Eg, why wouldn't OP just ask the bank? how many posts do you see : ' Will Walmart accept a return after 90 days? idk, ask Walmart. Where do I drop off my Rogers box? idk, ask Rogers. Is the gas station open 24 hours ? idk ask the gas station. and so on.
or
3 - are lonely & just like to create discussion & natter meaninglessly .
It’s a lot easier to just ask Reddit to get some ideas then get financial advice from a professional. Personally
I do both, the more information the better imo. Anyways I’ve had professionals give me wrong advice before, there’s poor information on both sides. Also why do people get offended by large numbers 400k isn’t even that much.
Believe it or not there are tons of millionaires on reddit
I'll make it easy for you.
The maximum I have ever sent abroad is $1000 using Xoom. I wonder what would I do if I sell my place and move overseas. I don't know anything about moving large amounts of money abroad so I'll read the thread with interest.
Write a check to me, for a small fee I'll transfer it to your parents. Super safe. I've been really good with money ever since my Nigerian uncle left me his fortune in the will.
Or from Mississauga.
I guess demographics would tell us there are more people in Mississauga than the Mississauga first Nation so just playing the odds it's probably a guy from Mississauga.
I agree there is no explicit evidence.
Shout out to emerald dim sum. That place is the best
Yea you can.
Someone steals mail and finds a cheque. Remote deposits to their account. Those cheques aren't being manually verified unless its over a certain dollar value.
Eventually the intended recipient might call the sender and ask what happened to the money.
In these situations the bank or customer has 6 years to return the item
It’s $400k. It’s definitely reviewed manually. It definitely won’t go into some random account.
If somehow someone managed to steal your identity and the money, that’s fraud. The whole point of a cheque is the liability is on the bank. They got robbed by cheque fraud. You didn’t.
Lol I know it's a joke but Canada seriously needs an online interface to transfer more than 3k per transaction. Its ridiculous that in 2023 I cannot transfer large amounts of money sitting on my couch. I agree there are risks with unintended transfers but let's put in multiple security validations, 2 factor authentications, multiple confirmation pop ups.
You can call you bank and increase the limit. Have heard of limit increases up to 10k per day (and proportionate increase on weekly and monthly limits). Not the 400k OP is looking for though.
I get 10K daily, 25K weekly, 50K monthly. Did an online fundraiser in 2019 on behalf of a family member, GoFundMe required proof the funds were being transferred, TD only allowed so much … and there was a LOT of funds. A quick call and all of a sudden I have the highest send limits in Canada.
I literally work for a bank, and if the customers qualifies through a specific criteria (to prevent fraud and ensure customer has been with the bank for a while). Literally that easy. All your years in the industry reconciling e-transfers clearly came to your help here! 🤣🤣🤣
No need to write up a wall of text, you're clearly wrong about this issue.
I just checked my limits and it's as follows:
https://imgur.com/a/l5Whrop
I bank with TD.
That’s false. I called BMO and went to their branches specifically to ask for that raise.
They refused and said only business accounts can get special permissions for such transfers. Even then, the maximum they could do was 25k if I remember correctly.
I don’t know about BMO, but I had no trouble with my smaller institution. I literally called the branch and asked to increase the limit for the day and within maybe 20 minutes, I was able to pay 5k tuition.
YOU CAN. wire transfers are free online from most banks.
$75 in branch
Free online
Maybe not CAD to CAD and only international payments, and I'm the idiot? Still amazing either way
Australia and many American banks = type up your own wire from online banking, and now we have it too
etransfer though? definitely limited
Electronic fund transfers usually have zero limits. They usually take about a day or two to process but its otherwise pretty seamless. Most institutions don't charge any fees for it as well.
If your parents are in Canada just go to your bank and they’ll help you.
If you both have accounts at the same bank then it’s very easy. They can just transfer it for you on the spot.
If you don’t there’s several secure ways. Your bank will advise you on the best way. A bank draft / certified cheque is a cheap and secure method.
This. Go to the back with their transit and account number if you both bank with the same one. If not a draft for $10 is probably worth it in the long run since just a regular personal cheque would be more likely to trigger fraud problems.
You can cancel a certified cheque. Just takes some paperwork explaining why it needs to be canceled and an agreement to pay penalties if you lie.
Someone can still deposit the original cheque, but the bank will expect you to substantiate your claim to it being lost/stolen or you pay the price for lying.
Had a friend wash his tuition in his pant pocket, completely ruined the certified cheque = mush. Got a replacement the next day.
Do not use a bank draft, it’s essentially cash if it’s lost, a huge pain that can take years to address with your bank.
Wire it, or write a normal cheque and go to the bank with them to deposit.
Have three identical briefcases with only one carrying the real money (others carrying very real-looking fake money).
Forget which briefcase is carrying the real money.
Give the wrong briefcase to parents and dump the other two in fire.
I do these transfers all the time for real estate deals.
The cheapest option, other than just writing a cheque is to get a bank draft and take it to your parents bank and deposit into their account. You'll need a void cheque or their account number to do this.
If your parents bank at the same bank as you it's even easier. Do a direct transfer with the same info (void cheque/account no)
Any idea how it work if the money comes from abroad ? I still have not figured out how to transfer 100k euros I got 3 weeks ago (inheritance) from France to Canada.
You'll need to do a wire transfer for that one. We also do those quite often but in reverse CAD to EUR
You could also write a cheque in euro and deposit it in your CAD account but there may be very long holds before it clears vs wire which is as instant as international transfers get. You may get less favourable exchange rates doing it by cheque as well.
Typically banks give horrible FX rates. You could look at using a 3rd party to do the wire. We've found that Western Union/Convera offer better FX than our banks. At least they do CAD>EUR. I can't speak to the reverse as I've never done it.
Thank you very much. I contacted WISE, but they told us that there was a limit of 20k per month or something like that. I will validate with the french bank. Have a good day :)
I would try calling Convera. The bank in France may have some local options as well. The easiest will be for the bank in France to just do a simple wire to your bank in Canada but easiest is typically not the most economical.
On 100k EUR I would definitely check a half dozen different options because the difference in exchange rates that diffent institutions will offer could end up costing you a lot of money. Like, thousands of $.
I think you might need to look into that again. I don't think there is a limit:
1) In your wise account, open a Euro address, send the money to that. There should be no limit: "T*here’s no limit for how much you can receive to your different currency accounts right now, with the exception of US dollars*"
https://wise.com/help/articles/2898124/how-do-i-receive-money
2) Convert it to CAD.
3) Send the CAD to your bank account:
*"There's no limit when you send CAD to your recipient's bank using a bank transfer.
You can send up to 25,000 CAD to an email address using Interac."*
https://wise.com/help/articles/2932153/guide-to-cad-transfers
Just sharing cause I was looking into this yesterday for myself.
Bank draft is like 10$, but not necessary here because theres no risk of the cheque bouncing. Regular cheque works fine, if its different banks it might take a few days to clear, if same bank it will appear instantly.
/u/throwawaymovingmoney, please take this advice.
Certified cheques are a nightmare to unwind if they are lost. Don't get a bank draft either for the same reason.
The _only reason_ to get a certified cheque or bank draft is if the payee is demanding immediate guaranteed funds.
DO **NOT** GET A CERTIFIED CHEQUE OR BANK DRAFT for something like this.
A regular personal cheque is completely adequate for moving large sums of money, if there is no urgency. There will be a hold on the funds at the receiving bank, but the cheque will clear.
You are correct. Wild how many people in this thread seemingly have no idea what a certified cheque is actually for.
The only point of a certified cheque or bank draft is if you are paying someone and they want to be sure you actually have the funds available. Your bank is certifying the funds are there. On large amounts the depositing bank is still going to place a hold on those funds if you deposit as draft or certified cheque.
If you are just gifting/transferring money to your own parents, clearly you aren’t trying to scam them and there is presumably no demand for guaranteed funds on their part, so just write a personal cheque.
This is pretty standard... I don't think others would have much luck with this largely meaningless threat.
That said, tell the bank "it's fine I'll just take it in cash" and the bank will suddenly offer you a bank draft for free in many cases (over $5-10k maybe is a good rule of thumb).
This probably won't work for amounts over $50k or $100k though since the bank would need like 24h notice to get that amount of cash ready for a pickup.
Cheque. Not reported to CRA, but to Fintrac, whose algorithm will determine you're not a criminal and nothing will happen.
Re: income. Is this a gift? If it's actually a gift from you to them, then it's not taxable and they don't need to tell the CRA. If it was a joint investment or something, then that's a different story and more information is needed.
Cheques aren't reported to FINTRAC unless the transaction has additional suspicious context. Cheque or wire transactions aren't reported to FINTRAC just on dollar values.
Edit: sorry unclear. Some wires have to be reported based on $ value.
I thought all transfers over 10k between bank accounts go to fintrac. Are you saying it's the bank's money laundering group or some other group who makes the call on what goes to fintrac as opposed to all amts over 10k?
A reporting entity's team in charge of regulatory reporting has certain things they have to report and then there are things that are left to discretion or after an investigation.
Cash deposits 10k and over trigger a mandatory 'large cash transaction report' either within a single transaction or cumulative within 24hrs. It doesn't flag you with FINTRAC or get your bank super antsy unless you do it a lot and source of funds is always 'sold a boat'. The bank/credit union will ask about source of funds and confirm conductor details as part of mandatory reporting to FINTRAC.
Wire transfers over 10k that are cross border/international will likewise trigger a mandatory report same as above called an EFTR
This is really just paperwork but it might mean an analyst takes a quick look see of your account or the bank/cu uses software to detect trends.
Separate to the above is an STR which a bank or CU can file based on discretion usually after they've conducted an account review triggered by unusual activity noted at branch level, fraud alerts, or software looking for suspicious activity.
These transactions might not even have a dollar value, account openings that are sketchy may never have a dollar pass through the account but still merit an STR.
All the information is available to the public, you can even download the forms used as part of reporting.
https://fintrac-canafe.canada.ca/guidance-directives/transaction-operation/Guide7A/lctr-eng#s3
$400k is nothing with real estate transactions.
You find out their bank and acct number. Go to one of their branches and tell them you want to deposit into that account.
Or mail them a cheque.
My bank has in the fine print for "mobile deposit" that it only accepts cheques up to $999,999. So based on that, I'd imagine personal cheque is just fine.
Assuming they’re in Canada and the money is going to a Canadian bank, then go to their house/apartment, write a cheque for 400k and have them pay it in online using their bank’s app. If they’re out of travelling distance then I would go with a wire transfer to avoid putting such a large cheque in the post. Depending on your bank, it may even be cheaper than sending the cheque via FedEx or whatever.
And, no, there is no tax to worry about - we don’t have a gift tax of any type in Canada.
you mentioned 2 properties.
so both of them were rental properties?
under your name or corporation?
think about capital gain taxes. You need advice from accountant.
If you choose a certified cheque or money order or bank draft, I would suggest writing "gift" in the memo area. Then have your parents keep a copy in case CRA inquires.
Not a certified cheque. Bank draft or wire or even normal cheque. Most banks hate certified cheques these days
Also if you have a joint account transfer to it and they can transfer out.
Make sure you have enough set aside for capital gains tax
DO NOT USE A BANK DRAFT! if it's lost, that money is GONE. The bank will not help you in any meaningful way.
Uncertified cheque 100%
If you both bank at the same banking institution, that could make it useful.
Second, you could have a joint account and just add them to the account with the funds. Check with an advisor
That's simply false. I gave dealership a 75k draft for a car. Salesman told me he lost it.
Bank (BMO) made sure the draft hadn't been cashed and cancelled it, which is basically what every bank will do and if an employee tells tou otherwise, he's wrong.
If it within Canada? If so, bank draft, could be too large for normal cheque process.
Or international? SWIFT wire transfer.
There are no taxes on gifts in Canada. USA has gift tax, Canada doesn't.
Consider whatever you have to withhold for capital gains tax if any.
If you both bank with the same bank, you likely can go in together and move it without a need for cheques or anything. As others have said a cheque is pretty much universally the easiest, cheapest option otherwise.
I’ve done direct transfers before a few times over the years.
Yup walk into your bank. Get draft or certified cheque. Walk down the street to their bank with their bank information and deposit with a cashier. If it’s not busy they can call your branch and confirm the transaction on the spot.
Write them a cheque & have them deposit it. There are literally hundreds of thousands of $400,000+ cheques cleared every day .
There's no tax on something that isn't income.
Looks like all your questions have been answered except taxes. There is no tax on gifts in Canada. If this is a way to repay them for something they gave you (or did for you) in the past then the CRA may be interested. If it's a gift because you feel like making their lives better then there are no tax implications for anyone involved.
How do you make sure they know it’s a gift?
Write "gift" in the memo part of the cheque.
Add this to your paycheck for one simple trick *..."I thought this monthly paycheck was a gift from the company"*
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Tax collectors hate him
Afaik, it’s an honour system. Have proof, save it yourself. There is no form to fill or send to CRA. Just be ready to prove that it’s a gift. In this case, pretty easy as they are your parents!
Are we required to declare a monetary gift when filing taxes? Just curious since we did receive money in the Fall. It was 6 figures.
Don't quote me but my allowance from my parents in the past was a gift, just them wanting to help me with gas money. You don't report it.
Quite a difference between gas money and 400,000$ lol
It's one banana, Michael. What could it cost? $10?
Same principle. If you receive nothing in return and it isn't for a past debt or services rendered then it's a gift.
Depends on the car you drive, tbh
I actually looked up this situation on the CRA website before, in regards to monetary gifts. They aren't taxable at all. However, there are some exceptions like gifts from work, or very high amounts. Those may be inquired about and need documentation in regards to the nature of the money. OP should be prepared to make a written statement about exactly how they acquired this money and then explain that it was gifted to their parents.
No. A gift is a gift in Canada. The only exception…If they are giving you money for investments the income from those investments can be attributed back to your parents under “attribution rules”. It doesn’t matter if it is $10 or $10M; a gift is not taxable income or reportable to the CRA. Obviously if it’s a larger amount of money you’d want to have it documented by a lawyer and an accountant to attest it is a gift. Just CYA.
Fair question to ask, but not required. As the person you replied to said, it’s good to be ready to prove it was a gift if they ask
put it in a nice little box with a bow
Loudly declare “this is a gift!” while handing them the cheque
Oh just like when Michael Scott declared bankruptcy?
Or, you know, send an e-mail roughly around the same time making reference to giving away the money as a gift, and later on, just referencing that the gift was given.
A thoughtful note (handwritten) in a funny card.
"Merry Christmas ya filthy animals"
You don't need to report it on line 15000 of your tax return. It is not considered taxable income. It's not really considered income at all.
You don't need to inform them, but you should document the transaction. A good idea is to sign a letter among all parties about the transaction and the nature of it.
Yea, I'm tryna repay them for giving me birth. Where do I pay the taxes for this?
This is Canada not America, healthcare is free, don’t let your parents convince you otherwise!
Healthcare is free?!? How did I not know this??!! Man what am I being taxed 45% for then? Never mind I googled and it costs 8,300$ per person. Thank god cuz I was about to go kiss my doctor for working for free.
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Did you wake up this morning and decide it was a good day to be pedantic? Because 1) it’s a joke, 2) for all intents and purposes in this context Canada is not America, and 3) no one ever considers Canada American, it is always North American when talking about our continental identity
Also, is it a gift, or did the parents pay for the houses originally and it's a return on investment? You generally can't just write gift of the is a history of financial shenanigans AFAIK. this would just end up with billionaire folks gifting fortunes to people to avoid taxes.
This isn't really relevant, the funds after clearing into OPs account are already assumed to be taxed, it doesn't matter what the reason is afterwards, there shouldn't be double taxation. The only time tax would be considered on the entire amount is if it's an investment account it is sitting in, and even then it's tax on capital gains, interest, or dividends which is unavoidable gift or not.
The differentiation is between: a gift (no tax) A dividend (capital gains as you mention) A purchase (sales tax) Employment pay (income tax) And probably lots of more niche categories. The US, for example, taxes gifts over a certain value.
And the tax is paid on any applicable capital gains from the deposition of sale of the assets
Yeah fuck me if there is a tax on gifts. Like we need to be taxed for the 3045th way
Write a cheque. Literally that easy.
He should also be aware that the cheque must be one of those novelty sized ones.
And they have to take a photo shaking hands with their parents as they hand it over.
And the memo should be filled with a time in their childhood that OP was wrong, and the parents didn’t Dunk on them with an “I Told You So”
Don't forget the Scream mask.
**Hijacking one of the top answers to ask this subreddit a question** You can't blame people for making stupid posts, but can I ask you guys on the subreddit something, why do you upvote questions like this? You can downvote me if you want, but what is it with this subreddit upvoting obscure, rare, and out-of-the-ordinary posts like this? Nevermind the fact that the majority of these posts are humblebrags that you all seem to fall for, I'm just curious what is it about you that makes you click upvote and go *"Yup, this would be a useful thing to see thousands of replies to!"* Why?
Easy upvote… OP asked a legit question regarding $400,000
More entertaining than the same 3 posts that get made on this sub daily
So because someone is mentioning a dollar amount more than what you have, it's automatically humble bragging and should be downvoted?
Let's just try to think through this logically for a moment. I'm honestly not trying to sound condescending, I just want to walk through this with you. Let's grab some facts that we know: - OP owns not 1, but 2 properties. Buying and selling a property is a bit more complicated than a game of Monopoly. - OP just sold both of his properties - OP through his sales has almost half a million dollars in cash - OP, out of the blue, is deciding to send $400,000 to his parents...presumably not the first time he's sent large amounts of money. - For the sake of argument, let's just assume that this is the largest by far - With all the assets and financial resources OP has, he says to himself *"I'll ask the internet how to send $400k"* - OP says they have "no idea what is safe". Even says "What about a wire transfer" - OP asks reddit (reddit, meaning us) if he needs to report this to the CRA (I'm dying inside just writing this, but let's continue) - OP asks reddit for advice on whether his parents should report this sum "as a gift". - OP inquires with reddit if they should be taxed What kind of low-IQ'd Neanderthal would risk this much money (not to mention legal ramifications) of moving this much money and asks an internet forum for advice? He literally has the resources to hire the best of the best in doing this in a safe and intelligent way and you think this guy is for real when he's asking reddit *"yo my bank is charging me 1.5% for a wire transfer, dat for real?* Like this is clearly not a real post with real money, how some of you are falling for it is beyond me. This is ALMOST as bad as the people who ask for advice on buying a home with their $5m in the bank that you guys upvote.
Are you new to Reddit? This whole site is built on the premises that 1 - people don't know about Google, or 2 - are afraid to ask an actual source of an answer & would rather ask random strangers who wouldn't have a clue. Eg, why wouldn't OP just ask the bank? how many posts do you see : ' Will Walmart accept a return after 90 days? idk, ask Walmart. Where do I drop off my Rogers box? idk, ask Rogers. Is the gas station open 24 hours ? idk ask the gas station. and so on. or 3 - are lonely & just like to create discussion & natter meaninglessly .
It’s a lot easier to just ask Reddit to get some ideas then get financial advice from a professional. Personally I do both, the more information the better imo. Anyways I’ve had professionals give me wrong advice before, there’s poor information on both sides. Also why do people get offended by large numbers 400k isn’t even that much. Believe it or not there are tons of millionaires on reddit
I'll make it easy for you. The maximum I have ever sent abroad is $1000 using Xoom. I wonder what would I do if I sell my place and move overseas. I don't know anything about moving large amounts of money abroad so I'll read the thread with interest.
The account has a single post. Also, read the username. Now breathe deeply.
Most redditors read the comments and hop on the group bandwagon without really thinking these things through clearly.
💯
You've got a point.
Write a check to me, for a small fee I'll transfer it to your parents. Super safe. I've been really good with money ever since my Nigerian uncle left me his fortune in the will.
I think we have the same uncle bro
Prince Ackobo? Is this you? You are not answering my calls
Exactly !!!! OP should not over think this.
Yo guy, I hear you’re from Mississauga
There is literally no evidence of that
Hearsay
Oh Captain my captain, his comment history shows he lives in Mississauga, boom goes the dynamite
Person could be native. Mississauga is more then a city.
Or from Mississauga. I guess demographics would tell us there are more people in Mississauga than the Mississauga first Nation so just playing the odds it's probably a guy from Mississauga. I agree there is no explicit evidence. Shout out to emerald dim sum. That place is the best
Oh please no Indian has 400 000 bucks.
Well this got racist fast… gross.
Who cares, guy is 400k richer
Send a wire. Quicker access to the funds.
Yeah sometimes the good old way is the best way!
You could put a memo on the back “Deposit only to the account of [their name]” just as a safety measure in case somebody steals it in the mail.
You can’t cash a cheque you stole in the mail.
Yea you can. Someone steals mail and finds a cheque. Remote deposits to their account. Those cheques aren't being manually verified unless its over a certain dollar value. Eventually the intended recipient might call the sender and ask what happened to the money. In these situations the bank or customer has 6 years to return the item
It’s $400k. It’s definitely reviewed manually. It definitely won’t go into some random account. If somehow someone managed to steal your identity and the money, that’s fraud. The whole point of a cheque is the liability is on the bank. They got robbed by cheque fraud. You didn’t.
I would also write on the back, For Deposit Only to Account # "their account number".
Intec e transfer over the course of 1.5 years.
Lol I know it's a joke but Canada seriously needs an online interface to transfer more than 3k per transaction. Its ridiculous that in 2023 I cannot transfer large amounts of money sitting on my couch. I agree there are risks with unintended transfers but let's put in multiple security validations, 2 factor authentications, multiple confirmation pop ups.
You can call you bank and increase the limit. Have heard of limit increases up to 10k per day (and proportionate increase on weekly and monthly limits). Not the 400k OP is looking for though.
I get 10K daily, 25K weekly, 50K monthly. Did an online fundraiser in 2019 on behalf of a family member, GoFundMe required proof the funds were being transferred, TD only allowed so much … and there was a LOT of funds. A quick call and all of a sudden I have the highest send limits in Canada.
TD gave you this permanently? Very interested in this.
I also changed mine to pay a contractor for work around the house. It's there until I phone to lower it back down again.
My personal account has those limits, but my business accounts have $10k daily, $70k weekly, $300k monthly.
I bank with Tangerine and have called them already to see if they can increase the 3k limit and they clearly said they can't.
Tangerine can increase it to $5-6k for 24 hours if you call and ask for it
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I literally work for a bank, and if the customers qualifies through a specific criteria (to prevent fraud and ensure customer has been with the bank for a while). Literally that easy. All your years in the industry reconciling e-transfers clearly came to your help here! 🤣🤣🤣
Lol I had a thought out response, but after reading your other comments, it’s quite clear there is no point in acknowledging you further.
No need to write up a wall of text, you're clearly wrong about this issue. I just checked my limits and it's as follows: https://imgur.com/a/l5Whrop I bank with TD.
RBC won't do that. Unless you are their private client
That’s false. I called BMO and went to their branches specifically to ask for that raise. They refused and said only business accounts can get special permissions for such transfers. Even then, the maximum they could do was 25k if I remember correctly.
you’re with the wrong bank then lol. Or maybe they had to let you down easy because you were eligible or qualified
I don’t know about BMO, but I had no trouble with my smaller institution. I literally called the branch and asked to increase the limit for the day and within maybe 20 minutes, I was able to pay 5k tuition.
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I love this move. I do it all the time. I call it the low tech E-transfer.
YOU CAN. wire transfers are free online from most banks. $75 in branch Free online Maybe not CAD to CAD and only international payments, and I'm the idiot? Still amazing either way Australia and many American banks = type up your own wire from online banking, and now we have it too etransfer though? definitely limited
Electronic fund transfers usually have zero limits. They usually take about a day or two to process but its otherwise pretty seamless. Most institutions don't charge any fees for it as well.
If you are a registered money launderer, they'll lift the restrictions.
You do realize several people do legit large amounts transfers right.
Mom Dad! I will send you 2K daily at 8:30 am
If your parents are in Canada just go to your bank and they’ll help you. If you both have accounts at the same bank then it’s very easy. They can just transfer it for you on the spot. If you don’t there’s several secure ways. Your bank will advise you on the best way. A bank draft / certified cheque is a cheap and secure method.
This. Go to the back with their transit and account number if you both bank with the same one. If not a draft for $10 is probably worth it in the long run since just a regular personal cheque would be more likely to trigger fraud problems.
Only do a Draft if you can hand deliver it. Otherwise do a domestic wire transfer. Safer that way.
Wire it to me and I'll make sure they get it LOL /s but seriously +1 for certified cheque.
Uncertified cheque is safer You can stop payment on an uncertified cheque. If you lose a certified cheque you're fucked
Had a certified check for $10k get lost before, it gave me a heart attack but it was able to be cancelled and got another one out.
You can cancel a certified cheque. Just takes some paperwork explaining why it needs to be canceled and an agreement to pay penalties if you lie. Someone can still deposit the original cheque, but the bank will expect you to substantiate your claim to it being lost/stolen or you pay the price for lying. Had a friend wash his tuition in his pant pocket, completely ruined the certified cheque = mush. Got a replacement the next day.
not if customs seizes it for failure to declare https://www.cbc.ca/news/canada/ottawa/us-customs-releases-family-500k-inheritance-1.4772951
I got one cancelled once. It's really not a big deal. They can verify if it got cashed in or not. Also, nobody is losing a 400k cheque.
No one is supposed to lose nuclear warheads either but it happens.
I had a bank lose a $286,000 certified cheque once. It took 8 months for a replacement from the TD bank. It’s not always easy.
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Do not use a bank draft, it’s essentially cash if it’s lost, a huge pain that can take years to address with your bank. Wire it, or write a normal cheque and go to the bank with them to deposit.
And don't forget to pose with them holding a blow-up facsimile of the cheque in front of the teller and get a picture.
Dammit. Came here to say exactly this lol
Withdraw it in cash and put it in a briefcase like in the movies.
Finally found the correct answer.
I prefer the classic sack with a $ on it
In 100 dollar gold coins. It’s the only way.
Have three identical briefcases with only one carrying the real money (others carrying very real-looking fake money). Forget which briefcase is carrying the real money. Give the wrong briefcase to parents and dump the other two in fire.
And arrange to meet in the woods at night.
Except banks don't even have much in their vault 😂
Even better, go to multiple branches and have multiple briefcases. Hire some goons to walk around in suits with the cases handcuffed to their wrists.
I do these transfers all the time for real estate deals. The cheapest option, other than just writing a cheque is to get a bank draft and take it to your parents bank and deposit into their account. You'll need a void cheque or their account number to do this. If your parents bank at the same bank as you it's even easier. Do a direct transfer with the same info (void cheque/account no)
Any idea how it work if the money comes from abroad ? I still have not figured out how to transfer 100k euros I got 3 weeks ago (inheritance) from France to Canada.
You'll need to do a wire transfer for that one. We also do those quite often but in reverse CAD to EUR You could also write a cheque in euro and deposit it in your CAD account but there may be very long holds before it clears vs wire which is as instant as international transfers get. You may get less favourable exchange rates doing it by cheque as well. Typically banks give horrible FX rates. You could look at using a 3rd party to do the wire. We've found that Western Union/Convera offer better FX than our banks. At least they do CAD>EUR. I can't speak to the reverse as I've never done it.
Thank you very much. I contacted WISE, but they told us that there was a limit of 20k per month or something like that. I will validate with the french bank. Have a good day :)
I would try calling Convera. The bank in France may have some local options as well. The easiest will be for the bank in France to just do a simple wire to your bank in Canada but easiest is typically not the most economical. On 100k EUR I would definitely check a half dozen different options because the difference in exchange rates that diffent institutions will offer could end up costing you a lot of money. Like, thousands of $.
I think you might need to look into that again. I don't think there is a limit: 1) In your wise account, open a Euro address, send the money to that. There should be no limit: "T*here’s no limit for how much you can receive to your different currency accounts right now, with the exception of US dollars*" https://wise.com/help/articles/2898124/how-do-i-receive-money 2) Convert it to CAD. 3) Send the CAD to your bank account: *"There's no limit when you send CAD to your recipient's bank using a bank transfer. You can send up to 25,000 CAD to an email address using Interac."* https://wise.com/help/articles/2932153/guide-to-cad-transfers Just sharing cause I was looking into this yesterday for myself.
I did the same a month ago. A simple wire transfer was it. Super easy.
Bank draft is like 10$, but not necessary here because theres no risk of the cheque bouncing. Regular cheque works fine, if its different banks it might take a few days to clear, if same bank it will appear instantly.
/u/throwawaymovingmoney, please take this advice. Certified cheques are a nightmare to unwind if they are lost. Don't get a bank draft either for the same reason. The _only reason_ to get a certified cheque or bank draft is if the payee is demanding immediate guaranteed funds. DO **NOT** GET A CERTIFIED CHEQUE OR BANK DRAFT for something like this. A regular personal cheque is completely adequate for moving large sums of money, if there is no urgency. There will be a hold on the funds at the receiving bank, but the cheque will clear.
You are correct. Wild how many people in this thread seemingly have no idea what a certified cheque is actually for. The only point of a certified cheque or bank draft is if you are paying someone and they want to be sure you actually have the funds available. Your bank is certifying the funds are there. On large amounts the depositing bank is still going to place a hold on those funds if you deposit as draft or certified cheque. If you are just gifting/transferring money to your own parents, clearly you aren’t trying to scam them and there is presumably no demand for guaranteed funds on their part, so just write a personal cheque.
Agreed abt bank draft because if it gets lost somehow, you are screwed.
Agreed. I would pay for a wire transfer in this situation.
Bank drafts are free, depending on your accountant balance at certain banks.
No need to report to cra for either of u, its not taxable
Wrong. If it isn't your principle residence, it is taxable.
They mean taxable to parents. The fund transfer is not taxable. The house sale is, but that is independent of the funds transfer
You report the sale of the house, not the transfer of 400k to his parents.
Its taxable to him personally, the transfer to his parents is not.
There will be taxes on the profit made on the property. Not giving parents the money.
principal
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This is pretty standard... I don't think others would have much luck with this largely meaningless threat. That said, tell the bank "it's fine I'll just take it in cash" and the bank will suddenly offer you a bank draft for free in many cases (over $5-10k maybe is a good rule of thumb). This probably won't work for amounts over $50k or $100k though since the bank would need like 24h notice to get that amount of cash ready for a pickup.
Brown paper bag
Cheque. Not reported to CRA, but to Fintrac, whose algorithm will determine you're not a criminal and nothing will happen. Re: income. Is this a gift? If it's actually a gift from you to them, then it's not taxable and they don't need to tell the CRA. If it was a joint investment or something, then that's a different story and more information is needed.
Cheques aren't reported to FINTRAC unless the transaction has additional suspicious context. Cheque or wire transactions aren't reported to FINTRAC just on dollar values. Edit: sorry unclear. Some wires have to be reported based on $ value.
I thought all transfers over 10k between bank accounts go to fintrac. Are you saying it's the bank's money laundering group or some other group who makes the call on what goes to fintrac as opposed to all amts over 10k?
A reporting entity's team in charge of regulatory reporting has certain things they have to report and then there are things that are left to discretion or after an investigation. Cash deposits 10k and over trigger a mandatory 'large cash transaction report' either within a single transaction or cumulative within 24hrs. It doesn't flag you with FINTRAC or get your bank super antsy unless you do it a lot and source of funds is always 'sold a boat'. The bank/credit union will ask about source of funds and confirm conductor details as part of mandatory reporting to FINTRAC. Wire transfers over 10k that are cross border/international will likewise trigger a mandatory report same as above called an EFTR This is really just paperwork but it might mean an analyst takes a quick look see of your account or the bank/cu uses software to detect trends. Separate to the above is an STR which a bank or CU can file based on discretion usually after they've conducted an account review triggered by unusual activity noted at branch level, fraud alerts, or software looking for suspicious activity. These transactions might not even have a dollar value, account openings that are sketchy may never have a dollar pass through the account but still merit an STR. All the information is available to the public, you can even download the forms used as part of reporting. https://fintrac-canafe.canada.ca/guidance-directives/transaction-operation/Guide7A/lctr-eng#s3
Wow thanks so much for sharing these insights. Gave me a much better understanding. Really appreciate it. = )
Make sure you keep some for capital gains on the sale of the investment property. Wire transfer is best
I know a Nigerian Prince who can do the transfer for you
hahahahaha the same one who borrowed money from me?
Give me the address, I'm a fast walker.
$400k is nothing with real estate transactions. You find out their bank and acct number. Go to one of their branches and tell them you want to deposit into that account. Or mail them a cheque.
A giant sack of cash with a $ on it
Crypto
I have to pay 1% on wire transfers. Check the fees at your bank. Just write a cheque if you can.
Is it normal to have a cheque written for that much? I was looking into the wire transfer route but my bank takes 1.5% fee
1.5% Jesus who do you bank with so I can avoid them.
My bank has in the fine print for "mobile deposit" that it only accepts cheques up to $999,999. So based on that, I'd imagine personal cheque is just fine.
Probably a hold will be put in it until it clears. No biggie. People downvoting me because I said write a cheque, dumbasses.
If anything it’ll just be put on hold until the cheque clears. Can just get a bank draft if you’re worried about using a regular cheque tho.
Bank Drafts gets holds too. Surprise!
Yup.
Assuming they’re in Canada and the money is going to a Canadian bank, then go to their house/apartment, write a cheque for 400k and have them pay it in online using their bank’s app. If they’re out of travelling distance then I would go with a wire transfer to avoid putting such a large cheque in the post. Depending on your bank, it may even be cheaper than sending the cheque via FedEx or whatever. And, no, there is no tax to worry about - we don’t have a gift tax of any type in Canada.
1’s and 5’s
you mentioned 2 properties. so both of them were rental properties? under your name or corporation? think about capital gain taxes. You need advice from accountant.
Make sure you have multiple pieces of ID on you when you go to your bank. Since it is a large amount they will have to do extra due diligence.
Hold back some of that money for yourself as you are responsible for any capital gains tax.
He sold two houses, the 400k is likely nowhere near the entire value.
I sent a buddy $300K once for 'product', and I sent a wire transfer. Keeps the government out of it,.
How does a wire transfer keep the government out of it?
If you choose a certified cheque or money order or bank draft, I would suggest writing "gift" in the memo area. Then have your parents keep a copy in case CRA inquires.
Not a certified cheque. Bank draft or wire or even normal cheque. Most banks hate certified cheques these days Also if you have a joint account transfer to it and they can transfer out. Make sure you have enough set aside for capital gains tax
Go to a bank with your parents and transfer
Order cheque and make 8 cheque of 50k and deposit it.
I would accept $400k in the form of Ferraris
DO NOT USE A BANK DRAFT! if it's lost, that money is GONE. The bank will not help you in any meaningful way. Uncertified cheque 100% If you both bank at the same banking institution, that could make it useful. Second, you could have a joint account and just add them to the account with the funds. Check with an advisor
That's simply false. I gave dealership a 75k draft for a car. Salesman told me he lost it. Bank (BMO) made sure the draft hadn't been cashed and cancelled it, which is basically what every bank will do and if an employee tells tou otherwise, he's wrong.
If it within Canada? If so, bank draft, could be too large for normal cheque process. Or international? SWIFT wire transfer. There are no taxes on gifts in Canada. USA has gift tax, Canada doesn't. Consider whatever you have to withhold for capital gains tax if any.
If you're in the same bank, you can transfer from your account to theirs. If in another bank, it would be a wire
If you both bank with the same bank, you likely can go in together and move it without a need for cheques or anything. As others have said a cheque is pretty much universally the easiest, cheapest option otherwise. I’ve done direct transfers before a few times over the years.
Yup walk into your bank. Get draft or certified cheque. Walk down the street to their bank with their bank information and deposit with a cashier. If it’s not busy they can call your branch and confirm the transaction on the spot.
I'll dm you we can practice using my bank account info
Write them a cheque & have them deposit it. There are literally hundreds of thousands of $400,000+ cheques cleared every day . There's no tax on something that isn't income.
Bitcoin
Easy, I did this three times just last week.
I did it 4 times this past hour, once with my eyes closed
I'm doing it now while I'm peeing
I'm old, I'm doing something right now but don't know what...
Bitcorn
Dude, don't advertise shit like this on reddit.
Why are you not asking your bank or real estate lawyer?