My question is: Canadian-specific
QUESTION: 10 years ago I bought a l-bedroom condo in Whistler with a
downpayment belonging to my three underage kids (no retained paperwork on
the source of the $) with the intention that it was their property (in my
name) for their use when they became of age. Specifically to help them buy
their own homes. Now, when I come to sell it and divide the profits, I will
have to pay the capital gains. How can I minimise this?
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david ingram replies:
I have always advocated that parents buy a place for their kids instead of
an RESP. However, it should be clearly in trust for the kids and it is not
hard to do and works even if "you" put up the down payment.
At this point, it seems that the paperwork only shows the Whistler property
to be yours and subject to capital gains tax if you sell it.
Of course, you have the absolute right to maintain (assuming it is true)
that the condo was always theirs but if you have no evidence to that effect,
you will likely lose if challenged by the CRA.
If you have told a dozen people over the years (or even four) that the condo
is / was the kids, you could get everyone to sign an affidavit to that
effect and put it in with your papers for the future.
Proof it was theirs is that you actually put all the money in their name
without keeping a nickel.
I hope this helps and remember that:
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