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We have been defrauded of over $20,000 by someone who was able to make unauthorized e-transfers from our bank accounts. The bank has recovered a small portion of them, and it has refused responsibility for any more. I am at level three of the complaint process, and I am wondering how .... More »
How real estate is taxed during a separation or divorce + MORE May 15th
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What happens if a married couple separates, and they own a family house and a cottage. The separation is amicable and the couple would like to split the assets, with the family house going to the wife and cottage going to the husband. Would that trigger any taxes?
—Peter
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Should you sell your home to your kids?
– moneysense.ca
Q. A scenario we are thinking of is “selling” our principal residence to our three adult children. We would use the proceeds to build a vacation home that they will eventually inherit. When they buy our home, it will not be a principal residence for any of the children, as they all have homes. Instead, it will become an investment for them, while their mother and I rent from them until the vacation home is built and beyond.
The house is worth just over $600,000. We need $450,000 to $500,000 at most to build, and would be willing to sell the principal residence to all three of our kids for that price. Does this sound workable? Can we choose this lower price without any tax implications?
–Graham
A. First off, Graham, kudos to you for creativity. This is an interesting proposal and an opportunity for your family.
Assuming you have not owned another home during the years you have owned your principal residence, the sale—whether to your children or otherwise—should qualify for the principal residence exemption…
The house is worth just over $600,000. We need $450,000 to $500,000 at most to build, and would be willing to sell the principal residence to all three of our kids for that price. Does this sound workable? Can we choose this lower price without any tax implications?
–Graham
A. First off, Graham, kudos to you for creativity. This is an interesting proposal and an opportunity for your family.
Assuming you have not owned another home during the years you have owned your principal residence, the sale—whether to your children or otherwise—should qualify for the principal residence exemption…
