Cap gains on transfer to spouse

toad · Post by **toad** » Mon Apr 23, 2012 10:30 am

Hi,

Wife and I have rental ( in canada) owned by both of us (USA residents), although I have always claimed income. Would like her to claim income from now on an future
Capital gains. It looks like I should get appraisal and claim cap gains and Cca recapture on FMV at time of transfer - in canada. For USA there is no tax implications when transferring house to spouse which is nice.

Do I have to show/keep record of a payment going from wife to me for the house?

It looks like t776 calcs the Cca recapture and schedule 3 is for cap gains?

Thanks

nelsona · Post by **nelsona** » Mon Apr 23, 2012 12:00 pm

Be wary of non-resident disposition. You need to comply with T2062A.

having US view this as non-event is not the best situation, as you are creating Cdn tx without comparable US tax, for foreign tax creit purposes.

toad · Post by **toad** » Mon Apr 23, 2012 1:01 pm

Good point about t2602a. Do you think it applies if no actual sale took place? Wife was always 50/50 co-owner, I just always took rental income since I did the work and I had low income at the time.

nelsona · Post by **nelsona** » Mon Apr 23, 2012 2:04 pm

A disposition is a disposition. If you are going to try and take credit for selling your portion, and pay cap gains, then you are a non-resident selling Cdn property. If not, then its a non-event all around.