How not to overspend on your next car + MORE Apr 19th

A MoneySense reader writes:
My wife and her mother own a Toronto condo as joint tenants. My mother-in-law lives in the condo as her principal residence, while my wife is currently a non-resident Canadian living overseas.
When my mother-in-law passes away, my understanding is that her share of the condo will be transferred to my wife as the other owner. We also think that my mother-in-law’s estate will not owe any capital gains taxes because the condo is my mother-in-law’s principal residence.
What I’m wondering about is whether there would be any tax consequences for my wife when my mother-in-law passes away and my wife inherits her share of the condo. Would there be any tax owing for my wife?
FPAC responds:
Great question! We’ll go over all of the issues you raise in this response.
Understanding different types of joint ownership
There are two different kinds of joint ownership that can apply when you own a property with someone else:

Jointly, with rights of survivorship: In this case, when either property owner dies, their share passes directly to the other owner…

Canada stimulus budget pledges funding for childcare and Covid-19 relief  The GuardianFederal budget 2021: Feds unveil $101.4B in new spending, with deficit declining  CTV NewsCanada’s budget to include digital and luxury levies, but no wealth tax: Reuters sources  CTV NewsChrystia Freeland’s first budget lacks the unconventional thinking that Canada needs  Toronto StarOpinion: Federal budget 2021: Liberals bet big that we can spend our way out of deficit problems  The Globe and MailView Full coverage on Google News

“But you’re getting married! You have to!” That empty statement is on the other end of everything from wedding cakes to bachelorette parties, lace veils, engagement photo shoots and selfie stations. It seems that from the very minute you are betrothed, everyone and their mother (perhaps especially your mother) has opinions about what you should do at your wedding. The notion that couples will only have their big day once is also used to justify tossing their financial goals out the window, and the results aren’t very romantic.
According to a survey from BMO Financial Group, Canadian couples dip into their savings and investments to front more than half (60%) of their wedding costs. For most North American couples, it is almost accepted that getting married is going to end in a sizeable debt and some serious financial stress. Does that have to be the case?
Say it with us now: It is not worth it. No wedding is worth stress breakouts, zero sex drive, fighting with your partner, or going into debt over…

Car-buying case study: Melissa and Dave
A car is the second-largest purchase you’ll ever make in your life, and you’re likely to make it many times over. Yet, unlike the home-buying process where you might have the professional assistance of a Realtor, mortgage broker, lawyer, and Certified Financial Planner, Canadians often handle the car-buying process alone—and not very well. Here’s a breakdown of the cost of Melissa and Dave’s decision:

Melissa’s SUV 
Dave’s SUV
Notes

Down payment
$10,000
$10,000
They both put $10,000 down, and only at the end of signing the financing papers did Michael say that the monthly amount would be “slightly more” than the $600 they had budgeted. 

Monthly financing cost
$650 a month for 6 years
$625 a month for 5.5 years

Subtotal
$46,800
$41,250
They both bought similar SUVs, but Melissa’s was a bit more expensive.

Total

$88,050
Decided upon in under two hours.

Where they went wrong
Let’s dissect where Melissa and Dave went wrong and how you can avoid making the same mistakes…