My wife was born in Canada but now has her US citizenship and resides with me in the US. She still has Canadian Citizenship but, as you know, the US does not recognize dual citizenship.
One of her Canadian parents wishes to gift her money. We know what the exemptions are if the gift was a US parent to US adult child; however, we are confused as to how the gifting from a "foreigner" would work. We are also confused about whether to open a bank account in Canada for the gifting of the funds as my wife still holds Canadian Citizenship.
We have been told that there are no gift taxes in Canada for cash and have also been told that the US IRS looks unkindly on people having more than $10,000 USD in a foreign bank account. So, in essence, what is the best path here to allow the gift to incur as little taxes (within the laws) to giver and receiver and where should the money be received, in Canada or to the US?
