Are gifts or inheritances taxable?
There is no "gift tax" in Canada. Any resident of Canada who receives a gift or inheritance of any amount from any source
(except from an employer) will not have to include this in their income. However, if capital property (real estate, other than a
principal residence, or investments) is given as a gift, the person who has given the gift will be deemed to have sold the capital
property at fair market value, and will have to pay tax on any resulting capital gain. If income producing property is gifted to
a child who is under 18 years old, the income from the property will normally be attributed back to the person giving the gift.
(Income Tax Act s 74.1(2))
The above does not include gifts from an employer to an employee, which may be considered a taxable benefit to the employee.
For more information, see the CRA guide
T4130 Employers' Guide Taxable Benefits, at page 14 under the topic "Gifts, awards and
social events".
There are tax consequences to the estate of a deceased taxpayer when capital property is owned at death.