I'm a certified financial planner, not an accountant, but I handle these kinds of inquiries for my clients. In fact, this sounds so much like a client of mine. You're not in Fort Sask., are you?
What bobblehead is telling you here is correct.
Quote:
Originally Posted by Bobblehead
If you bought the condo then it is your gain (or if you and your wife both put in money, you can split it). It sounds as if your mother is a non-factor in this; she didn't buy it, you did.
As for income vs cap gain, I would expect this to be a gain unless you have flipped another property recently.
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The cap gain is either yours or your and your wife's depending on the source of the funds. Also, if your intent was as you stated, then you should be okay with CRA. When this same thing happened to my client, they asked if they'd be okay with it being a cap gain and not taxed as income. I told them I'd make sure this was captured in my notes from our meeting and if there was ever a problem they could direct CRA to me for verification. I think you'll be okay.
Two things to be careful on: These things are open to interpretation and no one knows for sure how an auditor will rule. Even an accountant will tell you that this is how is SHOULd work, but it's not for sure. Never (and this goes for anyone in these tax situations) step over the line on these matters. I think you'll be fine if you follow the advice on this thread, but any time there is any uncertainty, check and verify and don't don anything that is in any way wrong.
For example on the last one, if anyone tries to slip a cap gain through, put through non-legit expenses or similar tactics thinking "oh, they'll never audit me anyway," that person could be in a world of trouble. I've seen it before where folks try things, get audited and CRA is able to make their life miserable for a very long time. It's not worth the risk.
However, I think you've been well advised here.