My question is: Canadian-specific
QUESTION: We are in the process of purchasing a condo in Edmonton for our children to live in for at least the next 3 years. The oldest son is also putting money towards the down payment with the intention of buying it outright in the future. We can structure things just about any way needed as nothing is in writing yet. Do you have any suggestions so we don't make mistakes.
Thanks ----------------------------------------------------------------------
david ingram replies:
If the idea is to keep any thought of the CRA attacking an eventual transfer of the title to your son, you should justhave it in his name in the first place and you have loaned or given him the money for the purchase.
If you intend to share in any profit, then that profit would be subject to Capital gains tax whether in his name or yours because he is just holding your share in trust.
On the other hans, if your name is on it and you do not intend to share in any profit and that is in writing and you do not share inany profit, then it is tax free as well, because you are just holding it in in trust for him. Make sure this agreement is in writing.
But logically, if your name is on it, there is more chance of the CRA attacking the deal sometime in the future than if only his name is on it and he is occupying the property as his persoanl residence.
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This older Q & A will help as well
from: xxxxxxxxxxxxxxxxxxxxxxx
QUESTION: Me and my husband own a second house, title and mortgage is in our names. My mother lives there for free, thus we do not declare any rental income. We want to sell the house. What's the best way to pay less tax or avoid it? Do I have to pay tax even if it's my mom's primary residence? Can I transfer a title in her name, she sells it as her primary residence and pays no tax?---------------------------------------------------------------------
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