Can you donate a house to a family member as a gift without being taxed?

Question

I'd like to donate our 2nd house to my daughter and allow her to sell it to repurchase. Can I do that so that I don't have to pay capital gains on the property?

Answer 1

the property you are transferring must have a value, that value is to determine the captial gain.

1) When you transferr to your daughter, that ASSUMED price must be at market value, or if under, there will be a CG gain on the donator on the different from the time you buy the house, and the market value of the house ( you can look at your house at MPAC http://www.mpac.ca/) for your market value of your house.
But if you house is current on mortgage, the transferr price must be the higher of the market value or the mortgage amount.

Some one has to paid the CG, either yourself or your daugther.

Answer 2

In some places you can be taxed on gifts but if you were to try and donate it to her...I wonder if she has to be something other than just an individual to get a donation like that and no taxes or whatnot be involved.

I would call you local tax collector and see if they can offer you some info or at least tell you who to speak to.

Have you considered selling it to her for like $1? I wonder if that would be a way around it...?

Answer 3

Tax will be charged and it will be charged on fair market value I believe . Phone a tax specialist ,they will usually answer 1 question at least free. You can contact revenue Canada for info as well.

Answer 4

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Answer 5

Depending on where you are, it can be taxed.