The best TFSAs in Canada for 2023 + MORE Jul 4th
Friday's analyst upgrades and downgrades - The Globe and Mail Mar 22nd
House rich, cash poor: When a reverse mortgage might make sense Jul 15th
Top 100 dividend stocks in Canada 2024 + MORE Jul 30th
Half of Canadians plan to make cutbacks this holiday season, says new PayPal Canada survey Nov 17th
What are the taxes on transferring real estate to your kids?
– moneysense.ca
How do we determine fair market value in a fluctuating market? He will not be paying real estate fees. Are we able to gift a portion? Is it better to spread capital gains over five years? We are both retired on a fixed income. Is rent-to-own a better way to transfer?
—Joan
Claiming the principal residence exemption
When you transfer a capital asset like real estate to a family member, the transfer takes place at the asset’s fair market value, and capital gains tax is calculated accordingly.
In Canada, the principal residence exemption allows the sale or deemed sale of a qualifying home to be tax-free for a taxpayer. A transfer to a child would be considered a “deemed disposition” based on the property’s fair market value, meaning capital gains tax as high as 27% of the property appreciation could apply—that is, unless it could qualify as a principal residence…


