Quote:
Originally Posted by supafamous
If you own a place already then DO NOT put your name on your parents house because your portion of it will become taxable unless you declare it your principal residence at which point your current place becomes taxable.
The probate tax is pretty trivial - for a $2.5m place it's $35k. ( https://westcoastwills.com/bc-probate-fee-calculator/)
As long as the house is in your parents name and it's their principal residence there's no taxes for you to pay on the value of the property up till the time they die. After they die you owe probate and taxes on any appreciation that happens between 1 year after they die and when you sell (you don't pay capital gains on any appreciation within the first year after they die). If you can sell the house in year 1 then it's just the $35k you owe (split between you and your brother).
As always, I'm not a tax advisor so do consult a tax advisor if things get serious b/c it's A LOT of money. |
How does this relate to having a will? If no will is established, does what you describe apply? Would like to read more on this