My_question_is: Applicable to both US and Canada Subject: Changing title of a rental house to include my wife Expert: taxman at centa.com Date: Thursday November 17, 2005 Time: 11:34 AM -0800 QUESTION: I have a house in North Van that I have owned, in my name only, for around 24 years. Its purchase pre-dated my marriage, and it has been a rental for most of that time. But my wife and I now intend to return and live in the house. My understanding is that tax on any gain during the rental can be defered until I eventually sell. However, my wife and I would like to put the house in both our names. Would this be a deemed disposition, and would we have to pay the tax immediately? Is there any way around this? If we set up a post-nuptual agreement to 'share' the house, would the Canadian tax authorities consider this also a deemed disposition, with the same result? Since we are both US citizens, how would the IRS react to our puting the house in two names? -------------------------------------------------------------- david ingram replies: If the CRA OR the IRS taxed husbands and wives when they put each other's names on their family homes, you would know about it. Come back to Canada and move into the house. File an election under Section 45(2) of the Canadian Income tax act and you will not have to pay the income tax on the 24 years of profits until you actually sell the property. Putting your wife's name on the property will NOT create a problem in either country because you are US citizens. However, that is the clue here. If you, a US citizen put more than $100,000 US worth of house in a non citizen wife's name all at once, it could trigger a US gift tax. Glad to help you with your returning tax returns in this matter. Also, if any other readers wish to comment, I am interested in any other opinions on this. ingram ---------------------------- Answers to this and other similar questions can be obtained free on Air every Sunday morning. Every Sunday at 9:00 AM on 600AM in Vancouver, I, david ingram am a regular guest on Fred Snyder of Dundee Wealth Managers' LIVE talk show called "ITS YOUR MONEY" Those outside of the Lower Mainland will be able to listen on the internet at www.600AM.com <http://www.600am.com/> Call (604) 280-0600 to have your question answered. BC listeners can also call 1-866-778-0600. Callers to the show and questioners on this board can also attend the Thursday Night seminars on finance and making your Canadian Mortgage Interest deductible. 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