Helping your family should not create a tax problem. But in Canada, that is not always the case.

In this episode of The Advisors Table, we discuss how ordinary family decisions — gifting money, transferring property, helping a child invest, or using a shareholder loan — can trigger serious and often unexpected tax consequences.

In this episode, we break down:

• Why helping your kids can trigger tax for you — not them
• How attribution rules apply to children under 18
• The difference between gifts and loans — and why it matters
• Section 56 family loan rules for adult children
• Why gifting a cottage or property can trigger immediate capital gains tax
• Corporate loans to children and the one-year repayment trap
• Why down payments labeled as “gifts” may not actually be gifts
• Practical ways to help your kids without funding CRA

Understanding the system before you act is how you protect your family’s wealth.

Links:

1. We Can’t Build Affordable Housing While Taxing It Like A Luxury Tax

Looking for trusted tax advice?

Connect with Sankalp (Sunny) Jaggi at Cedar Consulting Group.

Email: [email protected]
Website: cedargroup.ca

Subscribe if you want practical breakdowns of real tax scenarios.

Have you ever been surprised by a tax consequence after trying to help family? Share your experience below.

Timestamps:

00:00 – Gifting money to kids & grandparents: why attribution rules exist
05:40 – How attribution really works and why families usually miss it
11:30 – When the child turns 18: new traps, loans vs. gifts and paperwork mistakes
16:40 – Gifts to adults vs. minors: different rules, same audit risk
22:40 – Registered options for families (RESP, TFSA, RRSP) — what actually helps
28:50 – Documenting gifts and loans properly (what auditors look for)
34:00 – Corporate money for children: why business owners get stuck
38:40 – Shareholder loans vs. employee loans — where people cross the line
43:30 – Shareholder loans and double taxation explained step-by-step
48:50 – Why auditors focus so heavily on shareholder loans
54:30 – Income-splitting rules for business owners (and why they fail so often)
58:30 – The 20-hour rule and other carve-outs that actually work
1:01:00 – Real case: gifting property to a grandchild → double capital-gains tax
1:06:40 – Principal residence exemption and why it doesn’t always save you
1:09:40 – Final warnings, planning checklist, and closing thoughts