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.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
WKYC adding more news with former CNN anchor Christi Paul at 5 p.m.Christi Paul will begin her regular role at WKYC Channel 3 on September 12, anchoring a new hour-long 5 p.m. weekday newscast. The former CNN personality will anchor the program, called “What’s Now,” alongside Carmen Blackwell.
Read more »
Read everything Joe Biden said in his 'Soul of the Nation' speechThe president appeared in Philadelphia where the Constitution was written to deliver his most direct attack on Republicans to date.
Read more »
Lea Michele says of course she can read, she was on GleeThe upcoming Funny Girl star blames sexism for the persistent Internet 'rumor' of illiteracy
Read more »
Must Read: America's Shein Obsession, Simon Porte Jacquemus Gets MarriedWhat's behind America's ongoing Shein obsession?
Read more »
Lea Michele Addresses 'Glee' Bullying Claims And 'Sad' Rumor She Can't ReadThe actor is attempting to clear the air ahead of her debut in Broadway's 'Funny Girl.'
Read more »
Lea Michele Addresses the Rumor That She Can’t Read'I think often if I were a man, a lot of this wouldn’t be the case,' the actor said of rumors of her illiteracy.
Read more »