Other con­sid­er­a­tions

The Prince George Citizen - - SPORTS -

It is crit­i­cal that the ex­change be made at fair mar­ket value. There­fore, it is highly rec­om­mended that a pro­fes­sional ap­praiser be re­tained to de­ter­mine the fair mar­ket value of the par­tic­u­lar non-in­come pro­duc­ing as­set be­ing and doc­u­ment this value. It is also ad­vis­able that the pay­ment for the non-in­come­pro­duc­ing as­set be­tween you and your spouse be doc­u­mented to pro­vide a pa­per trail for the Canada Rev­enue Agency, should they ever au­dit your tax re­turns.

It is very im­por­tant that the non-in­come­pro­duc­ing as­set sold by your lower in­come spouse did not orig­i­nate as a re­sult of a gift from you. If this is the case, this strat­egy will not work be­cause the at­tri­bu­tion rules will ap­ply. Due to this, you and your spouse should both be pre­pared to prove how and from whom your lower in­come spouse orig­i­nally ac­quired the non-in­come pro­duc­ing as­set.

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