Managing tax in a “tenancy in common” situation
Claudia wants to minimize the tax payable when selling her share of a cottage to the co-owner.
Advertisement
Claudia wants to minimize the tax payable when selling her share of a cottage to the co-owner.
Share this article Share on Facebook Share on Twitter Share on Linkedin Share on Reddit Share on Email
My ex-wife and I will probably being disposing our family home…we divorced 6 years ago and she has a new partner and they intend on cohabitating if not marrying. We build the house in 2003 and it has at increased in value by about 350% right now….there is about 25-30% total value in debt.
The question I have…my ex wife has been living there the entire time. Can we both avoid capital gains tax as it was her principle residence. I am trying to wring every dollar out of the house for both our benefits. We have done significant maintenance to protect the value of the house so how does that spell off against value? The final point is who would be stuck with the capital gains? Both of us or just me as I haven’t lived there in over 7 years but have been paying half the mortgage etc as third party spousal support.
It is a complicated and convoluted situation….I’m looking for some insight/clarity because I suspect I will get the tax bill on this which could concievably leave me outside looking in on the housing market here in the Lower Mainland of Vancouver.
We appreciate the question and invite you to email your question to [email protected], where it will be considered for a future response by one of our expert columnists. For personal advice, we suggest consulting with your financial institution or a qualified advisor.
My sister and I own a cottage as tenants in common and both also own homes. Can I transfer my share to her under a quit claim and avoid capital gains tax? My research on line indicates that I can.
A common scenario today is for a parent to be required on a mortgage in order for their child to qualify for the mortgage. My husband is on our son’s mortgage and was also required to be included on the property title. He is listed as a ‘tenant in common’ with a 1% share as he was told by the purchase lawyer that this was necessary.
My son sold his house in 2024. My husband did not benefit from the sale financially.
My husband and I own our own home which is our primary residence.
Does my husband have to declare the sale of our son’s home since he did not benefit from the sale? If so, what is the process to be followed on his tax return?