How can you avoid a big capital gains tax bill when you die? — via financialpost FPAnswers capitalgains taxes personalfinance
My wife Ava and I are in the process of gifting some money to our only child, Marlena. I know that in Canada I can do this tax free. But what are the consequences of adding Marlena’s name to the title on our principal residence, small rental property and cottage, as well as all our bank accounts? All three properties were purchased in the 1970s so there’s a hefty capital gains tax to be paid when we sell or die. We’d like to avoid this if possible.
The capital gains tax was not introduced in Canada until 1972, so only appreciation from 1972 onwards would be taxable. There used to be a $100,000 lifetime capital gains election, and, in 1994, many cottage and rental property owners bumped up the adjusted cost base of their properties to use some or all of that exemption. If you did, that may reduce some of the capital gain on your other properties.
You may be able to get creative and transfer partial ownership each year for a number of years to your daughter to have small capital gains and keep your income in a lower tax bracket. But if you add Marlena to the title on your properties, there could be other issues related to the principal residence exemption.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
China records fewest marriages since 1986, adding to fears of population crisisChina last year registered the fewest marriages since its public records began more than three decades ago -- adding to concerns the country faces a looming demographic crisis.
Read more »
![Cardano [ADA] holders, read these recent updates on Vasil upgrade](https://i.headtopics.com/images/2022/9/1/cryptoamb/cardano-ada-holders-read-these-recent-updates-on-vasil-upgrade-1565347542740586501.webp?w=640)
Cardano [ADA] holders, read these recent updates on Vasil upgradeThe entire crypto community has been waiting for the Vasil hard fork. Originally planned to go live earlier this year, the hardfork was delayed for several reasons. Recently, Input Output Global (IOG) revealed many new developments through a tweet, suggesting the wait will be over soon. Amidst the hype and excitement, ADA’s chart indicated something […]
Read more »
Fall Arts Preview 2022: 31 things to do, read and watch in Metro VancouverThe must\u002Dsee theatre, concert, book, visual arts, dance and classical events happening this season around Metro Vancouver this fall.
Read more »
Ethereum investors planning to profit on Merge day should read thisMany Ethereum [ETH] investors may expect the Merge day to bring good tidings. However, this anticipation may need to be followed with a rethink of the situation. This is because the community may need to withhold transacting on D-day. While this assertion should not cause panic, investors should understand that risks are involved. According to […]
Read more »
New report shows Burnaby’s ‘out-of-date’ development approvals process lags behindThe city will revamp the development approvals process, including adding three staff positions.
Read more »