My name is Mark Goodfield. Welcome to The Blunt Bean Counter ™, a blog that shares my thoughts on income taxes, finance and the psychology of money. I am a Chartered Professional Accountant. This blog is meant for everyone, but in particular for high net worth individuals and owners of private corporations. My posts are blunt, opinionated and even have a twist of humour/sarcasm. You've been warned. Please note the blog posts are time sensitive and subject to changes in legislation or law.

Monday, April 18, 2011

Transferring the Family Cottage-There is no Panacea-Part 2

In the second blog, of my three blog guest post for the Canadian Capitalist; I discuss the income tax implications of transferring or gifting a cottage to your children. Many people are unaware these gifts or sales, often create an immediate income tax liability.

The blogs posted on The Blunt Bean Counter provide information of a general nature. These posts should not be considered specific advice; as each reader's personal financial situation is unique and fact specific. Please contact a professional advisor prior to implementing or acting upon any of the information contained in one of the blogs.

2 comments:

  1. What happens when three siblings own a cottage and one of the siblings wants to be bought out because they are dying and they need the money but the other two refuse ? The dying sibling has no will and is married with one daughter age 21. What tax implications are there for the surviving spouse and the siblings?

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    Replies
    1. Hi McPhado

      They(you?)need to get a will urgently. In Canada,if you die without a Will you are considered to have died "intestate." Simply put, this means that your provincial government decides how your assets will be divided—and not you. Get a will or tell them to get a will ASAP.

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