PART II - read further on for the original question and answer Dear Mr. Ingram, Thank you for your reply. My boyfriend however is not a resident of Canada, he does not lie with me , nor does he work in Canada. He resides and works permanently in the US as a US citizen. If I did decide to add him to title how would the CCRA view him and what tax implications are there to him and I assuming we were 50/50 joint ownership on the title ( with right of survivorship ) . Kind regards LXXXXXXXXXXX P.S. you are not the first to advise me that this in not a good idea and I can understand why . I just want to know if I did what it would mean in tax terms etc . ================= david ingram replies: If you give him half the house and it goes up in value, he will have to pay tax on the profit in both countries. We have a progressive rate of tax and his tax to Canada on his share would run from a low of about 24% to a high of 44% of 50 % of his half of the profit. The US would tax him again at their rates but the Foreign tax credit should be enough to suggest that there would be NO more tax payable to the US. If you put him on the title and he signs a document that ihis name is just there for estate and probate purposes and that he does not own any part ofthe house and will not pledge it as security and that you are to receive 100% of any cash that comes from the sale of the house, then there would be no tax consequences but he would have to file returns in both countries to report the sale. ----- Original Message ----- From: David Ingram at home - bus at taxman at centa.com To: Sent: Tuesday, October 19, 2004 10:41 AM Subject: Surrey, BC, Canada resident wants to put US boyfriend on title to her house when he will not live in it. - Ask an International real estate mutual funds immigration Divorce income tax expert experts - David Ingram 's Services North Vancouver BC Canada Name: L the_email: My question is: Applicable to both US and Canada QUESTION: I am a canadian citizen who own a home in Surrey B.C. I am currently the sole title owner. I am also the only one on title of the mortage against the purchase of the home. I want to add another name to the title of the home. Not the mortgage . Just the home. The person I wish to add on title is a US citizen who resides and works only in the US. This person will not be moving to Canada or using this as a rental property . They are simply being added on title. This person is my boyfriend and eventually I plan on moving to the US to reside there with him but also plan to keep my home in Surrey . What is involved with adding his name on title to my home ? Thank you L --------------------------------------------------------------------------- david ingram replies: Any lawyer or Notary public can add his (your boyfriend's) name to the title. If he is a boyfriend as in conjugal partner, it can be done without paying BC's Property Purchase Tax. You can transfer it to him in as Tenants in Common for 1%, 2% 10%, 50% or 90% - your choice. With tenants in Common, he will own that portion of the house set out in the title. If he dies, his portion goes to whomever he leaves it to in his will. If you die, your portion goes to whomever you leave your portion to. The other choice is Joint Tenants with Right of Survivorship. This implies that you own it equally but if you die, he automatically gets your half and if he dies you get his half back. Joint tenancy does NOT have to be 50/50 however. You can have a side agreement registered against the title which says that it is in joint tenancy for the purposes of estate and probate and that if you die, he gets it, but that he admits and accepts that he has NO ownership and will not try and sell it or pledge it as security and that he will sign it and give you "ALL" the money if and when "you" decide to sell it. I have to say, however, that I see no reason fro doing what you intend to do and recommend strongly against it. You might want to come out to one of Fred Snyder's seminars. Fred Snyder and I are giving free seminars on making your CANADIAN mortgage interest tax deductible at his office at 1764 West 7th Vancouver. This is in the Spence Diamond Building at the corner of 7th and Burrard and is very easy to find. When: Just about " Every" Thursday Night Time: 7 to 9 PM RSVP: phone (604) 731-8900 to reserve (limited to 15 people) david ingram OR Answers to this and other similar questions can be obtained free on Air every Sunday morning. Every Sunday at 9:00 AM on 600AM in Vancouver, Fred Snyder of Cartier Partners and I will be hosting an INFOMERCIAL but LIVE talk show called "ITS YOUR MONEY" Those outside of the Lower Mainland will be able to listen on the internet at www.600AM.com Local phone calls to (604) 280-0600 - Long distance calls to 1-866-778-0600. Old shows are archived at the site. This from ask an income tax immigration planning and bankruptcy expert consultant guru or preparer from www.centa.com or www.jurock.com or www.featureweb.com. Canadian David Ingram deals daily with tax returns dealing with expatriate: multi jurisdictional cross and trans border expatriate gambling refunds for the United States, Canada Mexico Great Britain the United Kingdom, Kuwait, Dubai, Saudi Arabia, South Africa, Thailand, Indonesia, Egypt, Antarctica, Japan, China, New Zealand, France, Germany, Spain, Italy, Russia, Georgia, Brazil, Peru, Ecuador, Bolivia, Scotland, Ireland, Hawaii, Florida, Montana, Morocco, Israel, Iraq, Iran, India, Pakistan, Afghanistan, Mali, Bangkok, Greenland, Iceland, Cuba, Bahamas, Bermuda, Barbados, St Vincent, Grenada,, Virgin Islands, US, UK, GB, American and Canadian and Mexican and any of the 43 states with state tax returns, etc. income tax wizard wizzard guru advisor advisors experts specialist specialists consultants taxmen taxman tax woman planner planning preparer of Alaska, Alabama, Arkansas, Arizona, California Denver Colorado, Connecticut, Delaware District of Columbia Miami Florida, Garland Georgia, Honolulu Hawaii, Idaho, Illinois, Indiana Des Moines Iowa Kansas Kentucky, Louisiana Bangor Maine Maryland Boston, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico,New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon. Paris, Rome, Sydney, Australia Hilton Pennsylvania, Rhode Island, Rockwall, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, West Virginia, Wisconsin, Wyoming, British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec City, New Brunswick, Prince Edward Island, Nova Scotia, Newfoundland, Yukon and Northwest and Nunavit Territories, Mount Vernon, Eumenclaw, Coos Bay and Dallas Houston Rockwall Garland Texas Taxman and Tax Guru and wizzard wizard - David Ingram's US/Canada Services US/Canada/Mexico Tax Immigration & working Visa Specialists US / Canada Real Estate Specialists 4466 Prospect Road North Vancouver, BC, CANADA, V7N 3L7 Calls accepted from 10 AM to 10 PM 7 days a week Res (604) 980-3578 Cell (604) 657-8451 Bus (604) 980-0321 davidingram at shaw.ca www.centa.com www.david-ingram.com Disclaimer: This question has been answered without detailed information or consultation and is to be regarded only as general comment. Nothing in this message is or should be construed as advice in any particular circumstances. No contract exists between the reader & the author and any and all non-contractual duties are expressly denied. All readers should obtain formal advice from a competent financial, or real estate planner or advisor & appropriately qualified legal practitioner, tax or immigration specialist in connection with personal or business affairs such as at www.centa.com. If you forward this message, this disclaimer must be included." -------------- next part -------------- An HTML attachment was scrubbed... URL: http://www.centa.com/CEN-TAPEDE/centapede/attachments/20041021/54fb1bb3/attachment.htm
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