My question is: Canadian-specific QUESTION: A couple of years ago I bought a house in Calgary, Alberta for my daughter, who couldn't qualify for a mortgage at the time. I have never lived in the house, but she has. She paid the mortgage payments and all other costs associated with the house. In other words, I was just the mortgage company.In April of this year she (I)sold the house for a profit (which she used to buy another house and move to another province. Her real estate agent told her we wouldn't have to pay capital gains, because she is my daughter, but I understood from the tax laws that you had to pay capital gains if the property wasn't your principal residence. My daughter was told that I didn't even have to report it on my income tax. Although I like nothing better, I feel uncomfortable with that. Can you help me? --------------------------------------------------------------------------- david ingram replies: You were holding the house in trust for your daughter - You either had a real trust where you did the paperwork or it was a constructive trust where your daughter treated it as her own by paying all payments and maintenance, etc. It is sort of like a first car where mom or dad has a car that belongs to their child registered in the parent's name for insurance or financing purposes. It "is" possible that you may get a call from the CRA but not likely. If you do, it would be handy to have some paperwork in your files stating what you have just told me. It would also be handy if your daughter filled out and submitted form T2091 and submitted it and gave you a copy for your records. The form says it does NOT "have to" be submitted but I like sending it in. http://www.cra-arc.gc.ca/E/pbg/tf/t2091_ind/t2091-ind-04e.pdf -------------------------- David Ingram's US / Canada Services US / Canada / Mexico tax, Immigration and working Visa Specialists US / Canada Real Estate Specialists My Home office is at: 4466 Prospect Road North Vancouver, BC, CANADA, V7N 3L7 Cell (604) 657-8451 - (604) 980-0321 Fax (604) 980-0325 Calls welcomed from 10 AM to 9 PM 7 days a week Vancouver (LA) time - (please do not fax or phone outside of those hours as this is a home office) email to taxman at centa.com <mailto:taxman at centa.com> www.centa.com <http://www.centa.com/> www.david-ingram.com <http://www.david-ingram.com/> Disclaimer: This question has been answered without detailed information or consultation and is to be regarded only as general comment. Nothing in this message is or should be construed as advice in any particular circumstances. 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