I am a Canadian working in the US and my parents live in Canada. I need to send my father about 100k CAD. Reading online, there’s no constraint about sending money to Canada and it won’t be taxed since it’s considered a gift. How do differentiate transfers as gifts or other types? Do I still need to declare it somehow? I usually use the Wise app to send money internationally since it has low fees and closers exchange rates that are reported in google. Any tips or things to consider before sending money over? Should I do it all at once or over a period of time?
Yeah you can wire them all at once. Send an email/gift letter to them as well for record keeping.
100k is too much to pay FX. Google "Norbert'a Gambit" to not pay any FX at all.
What is FX?
Foreign exchange.
Are you a US resident as well? If you are not, you might be subject to gift tax as the donated amount is more than 17k and you cannot access US lifetime tax exclusion which is like 15M+. I’d talk to a CPA. If anything, leaving your credit card (without foreign transaction fee) in Canada might work, too.
What if you first send to your own account in CA and then gift it afterwards?
I don’t think I am? I am not a permanent resident. I am a Canadian with a work permit (TN VISA) to work in the US
Would you get taxed on the US side? Gift limits within US have a maximum to be untaxed.
The taxes apply for transfer within the US. Transfers to Canada are OK.