Beneficial Ownership – Change of Title on Property

A recent technical interpretation by CRA notes that were there is a change in legal title on a property – in this case where the parent has title to an adult childs property (the beneficial ownership was with the child) – when the property title is transferred to the child no capital gain would be triggered.  It is important that the facts show that benefical ownership rests with the child – that is they have the right of possession, right to collect rents, right to call for the mortgaging of the property, right to transfer title by sale or will, the obligation to repair, pay property taxes and so on.

Categories
Category Groups

Leave a Reply

Your email address will not be published. Required fields are marked *