QUESTION:
I have a house in North Van that I have owned, in my name only, for around
24 years. Its purchase pre-dated my marriage, and it has been a rental for
most of that time. But my wife and I now intend to return and live in the
house. My understanding is that tax on any gain during the rental can be
defered until I eventually sell. However, my wife and I would like to put
the house in both our names. Would this be a deemed disposition, and would
we have to pay the tax immediately? Is there any way around this? If we set
up a post-nuptual agreement to 'share' the house, would the Canadian tax
authorities consider this also a deemed disposition, with the same result?
Since we are both US citizens, how would the IRS react to our puting the
house in two names?
