Asked
Clint Cole ...re capital gains tax in Canada.
Upon the sale of a house in Mexico, when the title on the house is only in one spouse's name, can the tax on capital gains be split between the spouses as it is community property? For income tax purposes, both spouses file as married. Thanks for any help you can provide or guidance on where to find this info.
Clint’s answer
Hi. It depends on the beneficial ownership of the property.
For instance, was it being rented out for income, and has that income been reported on both spouses income consistently in the past? If so, then the argument for a capital gains split is fairly solid, if not, you may have a little bit of a tough row to hoe unless both spouses can prove they split the original investment by tracking where a down payment or loan came from exactly.
Does this help answer your question?
November 8, 2024
From Ask Clint: real questions from a Canadian public finance forum, answered by Clint Cole. Names are changed. This is general information, not advice for your situation, and rules and dollar figures may have changed since Clint answered. Terms