Any issues with joint tenancy, then inherited cottage

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fangle
Posts: 13
Joined: Tue Feb 18, 2014 1:00 pm

Any issues with joint tenancy, then inherited cottage

Post by fangle »

Hello,

I'm a dual citizen, resident of Canada, lower income.

My aunt and uncle have asked me if I would like to be added to the title of their cottage (in Canada) with an eye to willing the rest to me later. (I will make sure they are getting professional advice if that makes sense for them as from what I've read I think that will trigger cap gains tax on the share they give me now and I'm not sure if that's their intention.)

However, I was wondering if there are issues I should look for in terms of US taxes if we move forward either as suggested or if they simply will the cottage to me? The property is one I would like hold and enjoy; its current value would be under $100k but it is not something I would be able to buy. But I also can't afford to stumble into complex tax situations.

From what I've read thus far, I would have to report an inheritance to the IRS if it's over a certain value. And I'm guessing that if I sold the property, there would be cap gains tax from both Canada and US? Down the road, is there a potential advantage to a Canadian spouse holding property instead of me?

I appreciate any pointers.
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