canada property

jalways747 · Post by **jalways747** » Sat Mar 17, 2012 2:58 pm

my wife owns rental property in canada and is non resident so does section 216 return.
if she (we)become resident then she files normal returns and no withholding ? right.
also property is in her name so if we make it joint is there any tax implications ? i am thinking joint title is better
thanks

nelsona · Post by **nelsona** » Sat Mar 17, 2012 5:17 pm

Correct. When resident, she will treat this property as an y other Cdn landlord would.

JGCA · Post by **JGCA** » Sat Mar 17, 2012 9:18 pm

CRA does not care about title, they care who put up the funds to acquire the property. So if its in your wifes name she can trf her half to you at ACB cost since its your spouse but from then on you each have to report the rental income.

jalways747 · Post by **jalways747** » Sun Mar 18, 2012 2:59 pm

thanks for info, but my thought is joint title property is easily transfered to surviving spouse without probate (at least in usa it is ) ?? true

JGCA · Post by **JGCA** » Sun Mar 18, 2012 3:21 pm

PROBATE is only on death in Canada, in Canada you have income tax when property is trf and this happens both on death or otherwise when there is a sale or trf there is capital gains. However between spouses you can elect the tff to occur at the cost (ACB) so you in effect defer teh tax till the other spouse dies ( deemed disposition) or actually sells it and their cost is the cost elected.