Search found 5 matches
- Mon May 25, 2020 11:42 am
- Forum: Canada / United States Tax & Accounting
- Topic: American citizen gifting real estate to Canadian spouse: Tax implications in Canada
- Replies: 9
- Views: 3011
Re: American citizen gifting real estate to Canadian spouse: Tax implications in Canada
I see. So to help facilitate my understanding, here's an example: Let's say the deemed disposition is done and the adjusted cost base is now 500K (Husband was a tax resident and had the property under primary residence prior to deemed disposition). Husband transfer to wife 2 years after this deemed ...
- Mon May 25, 2020 10:30 am
- Forum: Canada / United States Tax & Accounting
- Topic: American citizen gifting real estate to Canadian spouse: Tax implications in Canada
- Replies: 9
- Views: 3011
Re: American citizen gifting real estate to Canadian spouse: Tax implications in Canada
Also, they are thinking about declaring deemed disposition at the point of emigration. The fair market value will be the new adjusted cost base. When the American spouse transfers the real estate property to the Canadian wife, the adjusted cost base will be the stepped-up cost (fair market value at ...
- Mon May 25, 2020 10:26 am
- Forum: Canada / United States Tax & Accounting
- Topic: American citizen gifting real estate to Canadian spouse: Tax implications in Canada
- Replies: 9
- Views: 3011
Re: American citizen gifting real estate to Canadian spouse: Tax implications in Canada
Thanks for the clarification! I'll pass this down.
- Mon May 25, 2020 9:46 am
- Forum: Canada / United States Tax & Accounting
- Topic: American citizen gifting real estate to Canadian spouse: Tax implications in Canada
- Replies: 9
- Views: 3011
Re: American citizen gifting real estate to Canadian spouse: Tax implications in Canada
Thanks for the reply! They are doing this mainly because when the Canadian spouse sells in the future she should be able to apply principle residence exemption since she’ll be a tax resident at the time they sell. But if the American spouse attempts to sell the property in Canada as a non resident a...
- Sun May 24, 2020 10:41 pm
- Forum: Canada / United States Tax & Accounting
- Topic: American citizen gifting real estate to Canadian spouse: Tax implications in Canada
- Replies: 9
- Views: 3011
American citizen gifting real estate to Canadian spouse: Tax implications in Canada
Asking for a friend When an American citizen (who's not a Canadian citizen or tax resident) who owns a real estate property in Canada tries to gift his spouse who is a Canadian citizen and tax resident in Canada, would this generate a capital gain for the American spouse (i.e. need to pay tax to the...