Personal Finance

Removing my name from properties

  • Last Updated:
  • May 12th, 2020 11:00 pm
[OP]
Jr. Member
May 29, 2012
116 posts
18 upvotes
NORTH YORK

Removing my name from properties

I am preparing to file my income tax return. Due to family issues last year, I had to remove my name from one condo that was under my parents' and my name, and then I had to transfer another condo to my parents as a gift by having them paid me $2. So my question is how much taxes do I need to pay for the two transfers?
6 replies
Deal Addict
May 16, 2017
2170 posts
2821 upvotes
Was one of the properties your principal residence? Was either property rented out (i.e. income generating intent)?

Did you receive any funds for the condo you removed your name from?

All impacts what, if any, capital gains exemption and/or gain/loss may be applicable.

https://www.canada.ca/en/revenue-agency ... state.html

Particularly the section on Sale of a Principle Residence.


Also good article here on "deemed" disposition, capital gains, and non-arms-length transactions:

https://www.taxtips.ca/personaltax/gift ... tances.htm
Deal Guru
User avatar
Mar 23, 2008
13002 posts
9929 upvotes
Edmonton
Houfes wrote: I am preparing to file my income tax return. Due to family issues last year, I had to remove my name from one condo that was under my parents' and my name, and then I had to transfer another condo to my parents as a gift by having them paid me $2. So my question is how much taxes do I need to pay for the two transfers?
You really should sit down with an accountant and the actual numbers.

C
Deal Addict
User avatar
Mar 10, 2018
4762 posts
1310 upvotes
does it matter?
Houfes wrote: I am preparing to file my income tax return. Due to family issues last year, I had to remove my name from one condo that was under my parents' and my name, and then I had to transfer another condo to my parents as a gift by having them paid me $2. So my question is how much taxes do I need to pay for the two transfers?
Your task is not like selling a car or cell phone.as said above talk to Tax consultant and lawyers. RFD is not really good answer. If you are in mess you need good legal help and not RFD help.
To be honest I have frustration old users with very few posts ask such questions here in RFD.
Tried new coffee and doughnut. Found same old stale thing. expected bill of six bucks but it was 600 million. Big mistake so the guy said don't worry it is on the house. going back to McD.
Deal Addict
Sep 2, 2009
2153 posts
2152 upvotes
Ottawa
As others have said: get an accountant / lawyer.

This can get very costly and full of headaches quickly.

You can't "gift" a property without paying the appropriate taxes that apply (capital gains, land transfer tax -this may be on your parents-, declaring the 'sale' properly to avoid penalties and losing primary residence exemption, mortgages/loans that may still be associated with the properties, etc...). As you can see: can get very complicated fast (especially if "Due to family issues last year" means your parents are not friendly to whatever you end up declaring - as in, *you* need to declare everything, which means that on top of what happens on your end, things may happen on your parents' end)

To say again: get a good accountant and / or lawyer for this. The $2 gift means pretty much nothing here. Almost less than nothing. It possibly even created a situation where money exchanged hands (get an accountant and / or lawyer) which created a buy/sell transaction (which existed without the money changing hands but adds an extra layer of headache).
Sr. Member
Feb 18, 2019
569 posts
782 upvotes
Question related to OP's, but not quite the same:

If person A is on title for 99% of a property, and person B is on title for 1%, what is the easiest / cheapest way to remove person B and transfer 100% ownership to person A? For person A this is a principal residence, person B lives else ware in their own principal residence. There is no mortgage on said property, value is probably around 150K higher than when bought, so gains on the 1% would be around $1500.
Deal Addict
May 16, 2017
2170 posts
2821 upvotes
DonkeyDoo wrote: Question related to OP's, but not quite the same:

If person A is on title for 99% of a property, and person B is on title for 1%, what is the easiest / cheapest way to remove person B and transfer 100% ownership to person A? For person A this is a principal residence, person B lives else ware in their own principal residence. There is no mortgage on said property, value is probably around 150K higher than when bought, so gains on the 1% would be around $1500.
Which Province? Although it probably matters little. You can a very simple legal agreement of sale, which has to go through the same land title registration process as any other property sale to change the registered owners on the title. A notary can do this in BC.

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