gift of condo to son
My question is: Canadian-specific
QUESTION: We would like to give outright one of our two properties to our son. We purchased a new, small condo in Toronto for him in 2000 as a residence while he went to school. He has been the sole occupant, we have paid all related expenses. The condo has appreciated approximately $100,000.00. Can we simply give him the condo without any money exchange and pay no capital gains tax?
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david ingram replies:
If you bought it for him and only put it in your name to protect it from his being able to sell it, etc., then you should be able to transfer it now with no tax consequences. This also assumes that as his finances improved, he started treating it as his and started paying the expenses of the unit.
If, on the other hand, you have reported it as a rental unit and deducted rental losses on your tax return, you will owe capital gains tax on its disposal to your son or a stranger..
QUESTION: We would like to give outright one of our two properties to our son. We purchased a new, small condo in Toronto for him in 2000 as a residence while he went to school. He has been the sole occupant, we have paid all related expenses. The condo has appreciated approximately $100,000.00. Can we simply give him the condo without any money exchange and pay no capital gains tax?
___________________________________________________________
david ingram replies:
If you bought it for him and only put it in your name to protect it from his being able to sell it, etc., then you should be able to transfer it now with no tax consequences. This also assumes that as his finances improved, he started treating it as his and started paying the expenses of the unit.
If, on the other hand, you have reported it as a rental unit and deducted rental losses on your tax return, you will owe capital gains tax on its disposal to your son or a stranger..
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