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Hi Allan,
When my wife and I emigrated from Canada 20 years ago, our principal residence in Canada became a rental property. Title to the house is held jointly. Will the death of either my wife or myself trigger a deemed disposition of the property? My understanding is that there is no spousal roll-over for non-residents. Also, approximately how much tax would be payable on a gain of $800,000?
Thank you for your help.
Hi There,
A spousal rollover is not available for non-residents and so your spouse's death will result in a deemed disposition of the property to the extent of your spouse's ownership interest. If your spouse owned 50% of the property at the time of her death and the total gain is $800,000, then her share of the gain will be $400,000. She will owe capital gains tax for approximately $100,000.
Note that her estate must file an Application for a Certificate of Compliance with the CRA. Our office can help you with this.