How real estate is taxed during a separation or divorce + MORE May 15th

—Peter

Separation can be difficult for a lot of reasons, not the least of which is figuring out the finances. There are tax implications, Peter, for both individuals to consider.

How an asset transfer between spouses is taxed

First off, a transfer of assets between spouses is by default done on a tax-deferred basis at the original purchase price. So, whether the properties are held individually or jointly, either person can transfer their share of the ownership of a house and/or cottage to the other spouse without triggering an immediate tax implication.

They can elect for the transfer to occur at any value between the adjusted cost base and the fair market value. We will come back to this point…

Here’s what I know about TD Bank’s anti-money laundering troubles so far. Canada’s second-largest bank was loose in implementing the required checks and balances. It was so loose that Canadian regulator Fintrac issued TD a fine of $9.2 million—not much of a penalty for one of North America’s largest financial institutions. TD has already paid this fine. 

However, depending on the results of an ongoing investigation by U.S. regulators as well as the Department of Justice into the bank’s ties to a USD$653-million money-laundering case involving fentanyl and Chinese criminal organizations, it’s been said that TD could be on the hook for up to USD$2 billion in fines and potentially be forced to curtail its growth strategy in U.S.  

Over the past decade, TD has been on an acquisition spree south of the border, where it has grown into one of America’s 10 largest banks…