Personal Finance

Can my wife gift me shares from non-reg account?

  • Last Updated:
  • Feb 12th, 2019 1:24 pm
[OP]
Penalty Box
Apr 27, 2015
1330 posts
255 upvotes

Can my wife gift me shares from non-reg account?

My wife is still working and in the highest tax bracket, I'm retired and in the lowest tax bracket.
My wife holds US stock in non-reg account (RSU and ESPP) . Can she gift me her shares to lessen taxes? or she should report capital gain while gifting?
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4 replies
Sr. Member
User avatar
Mar 3, 2005
944 posts
607 upvotes
Mississauga
wouldn't the gift be a disposition for her (and therefore require her to account for the capital gain?)
[OP]
Penalty Box
Apr 27, 2015
1330 posts
255 upvotes
hopetindall wrote:
Feb 12th, 2019 12:18 pm
wouldn't the gift be a disposition for her (and therefore require her to account for the capital gain?)
That's what I want to understand, I googled the topic and found that
Gifts between spouses and civil partners are normally free of any capital gains tax.


but it looks like from UK website .... not sure about CRA rules (probably much more strict :))
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Sr. Member
Dec 4, 2004
589 posts
289 upvotes
GTA
Read here: Transfers of property to a spouse or common-law partner or to a trust for a spouse or common-law partner

From what I see (I may be totally wrong), there are two ways to do this.
1. You are deemed to buy from your spouse at the ACB, there is no capital gains is reported by your spouse now, however any capital gains in the future are attributed back to your spouse.
2. You are deemed to buy from your spouse at fair market value. Capital gain is reported now by your spouse and any future capital gains are attributed to you.
Sr. Member
Nov 12, 2014
769 posts
496 upvotes
Kingston, ON
Sure - she can gift you shares but she'd still pay the income tax on the dividends/gains from those shares in the future....you can't just "Gift" stuff to your spouse to avoid paying tax on the income.

Gifting between spouses is at cost unless you elect out of it, but there are attribution rules to consider. Get professional advice.

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