Hi,
My husband and I own a small condo as a rental property. We are planning to sale it in the summer. The property value has increased considerably during the short time we've owning it (2 years), and so we would like to arrange for the best situation with respect to paying tax on capital gain after we sell the place.
Since I will be going on materning leave in a couple of months and will not be getting my salary for this leave, we thought that it would be the best to do a transfer of land for the condo entirely into my name, so when the place gets sold, basically I would be the only seller since only my name would be on the tile, and so I would be paying the tax which would most likely be lower because I would not be earing my salary on mat leave.
Both of our name would still appear on the morgage though.
We though of this idea since we would want to avoid doing a so-called $1 sale transaction or such going through a laywer and paying legal fees for the sale/buy transaction.
Can you please advise if that sounds like a good idea? Any recommendation would be greatly appreciated.
Thanks,
Jan
My husband and I own a small condo as a rental property. We are planning to sale it in the summer. The property value has increased considerably during the short time we've owning it (2 years), and so we would like to arrange for the best situation with respect to paying tax on capital gain after we sell the place.
Since I will be going on materning leave in a couple of months and will not be getting my salary for this leave, we thought that it would be the best to do a transfer of land for the condo entirely into my name, so when the place gets sold, basically I would be the only seller since only my name would be on the tile, and so I would be paying the tax which would most likely be lower because I would not be earing my salary on mat leave.
Both of our name would still appear on the morgage though.
We though of this idea since we would want to avoid doing a so-called $1 sale transaction or such going through a laywer and paying legal fees for the sale/buy transaction.
Can you please advise if that sounds like a good idea? Any recommendation would be greatly appreciated.
Thanks,
Jan
