Canadian Mortgage FX Gain

[unluckyguy]

Hi,

Looking into buying my first house with my spouse and have some questions regarding the potential mortgage phanthom FX gain upon refinancing or repayment of the mortgage.

If my spouse obtains the mortgage and I co-sign, would that protect me from having to pay taxes on any potential phantom fx gain (as i would be a guarantor and not the debtor)?

And also, want to confirm that if i do not co-sign the mortgage, and my wife obtains the mortgage on her own, that it is not attributed to me somehow?

Thanks

[nelsona]

I'm pretty sure you would be on the hook for half of any of these FX gains as well as cap gains when you sell. You said that you are buying "my first house with my spouse", and "co-sign[ing]" the mortgage. How is that different than any other couple that buy a house together?

I wouldn't be worrying much about the FX gains, the CAD and USD are back where it should be historically. The FX problem came when USD dropped so bad in 2008.

[unluckyguy]

Thanks for the response.

The house is going to be my spouses (her downpayment and name on deed, without my name on it). I therefore assumed that i could avoid the capital gains as it is not my house in any way. Would seem unfair to get hit with any capital gains on something that isn't mine!

However, having me co-sign the mortgage would significantly help with the mortgage (amount and rate). Would like to help there without having any potential issues in the future.

[nelsona]

"The house is going to be my spouses (her downpayment and name on deed, without my name on it)" is significantly different than what you originally said.

Isn't this "community property"? IRS Pub 555 discusses how to report income when you live in such a state OR COUNTRY.

let me know what you conclude.

[Feduk]

Don't co-sign if you don't want to pay for the loans.

[Feduk]

Don't co-sign if you don't want to pay for the loans. I had a friend, Amanda, and she co-signed with her partner for a mortgage. Her boyfriend was a nice guy, but he was really broke. She wanted to help him out and co-signed for a lot of loans. I told her that was the worst idea and she would regret everything. Now she is broke and doesn't know how to repay everyone. Just don't co-sign if you don't want to be involved in paying. I took a mortgage from https://doncastermoneyman.comMortgage Advisor Doncaster and my mom co-signed with me to help me out, so yes, you also have to pay.