What are the tax implications of transferring the property from our
daughter's to our name?
Q.
In 1997, after a failed business, we put our house in my
daughters name to get a loan to pay our debts. My daughter would
like us to transfer it back to us. What would this cost in
taxes?
A.
Capital gains tax will be payable by your daughter and will be
the difference in the price she paid for it and its market value
now. This assumes it was transferred to her at market value. She
will be eligible for the 50% discount. It will be calculated by
adding 50% of the net gain to her income in the year the contract
is signed.
Each week financial advisor Noel Whittaker answers your
questions.
