Adding Canadian Wife to Title of House

butlertl · Post by **butlertl** » Tue Feb 26, 2008 8:15 am

Are there any tax issues by adding my Canadian wife to the title of our house in the US? She has a GC.....

nelsona · Post by **nelsona** » Tue Feb 26, 2008 8:57 am

None that I can think of.

You may have estate tax issues if she dies first.

Carson · Post by **Carson** » Tue Feb 26, 2008 2:02 pm

Watch out for US gift tax, b/c your wife is not a US citizen. The fair market value of half of the house is the gift. You are limited to a gift of USD $128,000 in 2008 to a non-US spouse before gift tax is payable.

Note, the gift tax issue applies whether you are a US citizen, or just a Canadian.

Also, check the local and State rules as a transfer tax and/or fees may be applicable.

DallasBill · Post by **DallasBill** » Fri Feb 29, 2008 11:30 am

At least in Texas, there are no issues whatsoever with this. There is no "gift tax" involved in adding a spouse to a legal property title. I did it myself 3 years ago. I would advise using a lawyer, however.

nelsona · Post by **nelsona** » Fri Feb 29, 2008 12:23 pm

Gift tax is a federal issue DB.

DallasBill · Post by **DallasBill** » Fri Feb 29, 2008 12:34 pm

I know it's a federal issue. Putting another name on a title (due to marriage) is [b]not[/b] a gift.

nelsona · Post by **nelsona** » Fri Feb 29, 2008 12:39 pm

As carson sez, it is indeed a gift, but between 2 US spouses there is no limit to such a gift.

The issue is the limit of a gift bewteen spouses that are NOT US citizens, as the original poster's case is.

nelsona · Post by **nelsona** » Fri Feb 29, 2008 12:41 pm

DB if your spouse is a USC and you added HER to your deed, then there is no gift tax.

But if it was the reverse, with HER adding you, then, the limit kicks in.

DallasBill · Post by **DallasBill** » Fri Feb 29, 2008 1:53 pm

Not if I paid for 1/2 of it, there isn't.

Also, notice the the OP said "our house" and not "his house."

nelsona · Post by **nelsona** » Fri Feb 29, 2008 2:01 pm

One typically refers to "our house" as the one they are living in, regardless of who paid for it. In any event, we are talink about adding one's name to a deed, not paying for half of its value for the privilege.

So, you paid for half the house (whatever that means) but did not have your name on the deed? How did that happen?

DallasBill · Post by **DallasBill** » Tue Mar 04, 2008 11:53 am

"One typically..." is assuming unstated things.

We are talking about adding one's name to a title, not a deed. A land title indicates ownership of the land -- any house on it just happens to add an improvement value to the land's legal plat description on the title. A land title in no way describes any structure(s) on it, nor declares any value on it -- that's the county tax record that does that. Once you have a new land title, you file it with the county, who then goes in a does "marriage name edit" and it's done with (here).

So, it's very easy for 2 married people to build a house on a titled piece of land in only one person's name, and have any other name added in process. It happens all the time -- there are legal steps to do so -- its called marriage and building a house.