Canadian gives spouse house for $2.00

> My wife and I moved out of a house in 1985, and used it as a rental property until this year, when it was sold.
> In 1992, I transferred full ownership of the rental property to my wife, for a nominal $2.
> How would she figure out the capital gains tax?
> Thank you,
david ingram replies:

As described, the capital gains is taxable to you under Section 74 of the Canadian Income Tax Act because she did not pay you a fair market value. In addition, any rental profits over the last number of years were taxable to you as described.