When disposing of any property including real estate, investments, expensive personal property (e.g. fine art collection), and bank accounts you need to make sure the rules for tax on disposal of property are followed. Many people try and avoid probate on disposition but instead open up the possibility of capital gains being applied which can potentially cost much more. Probate may or may not apply in your situation and more information on both what is probate and how the capital gain may be applied will be discussed in our episode below.
How To Minimize Tax On Disposal Of Property?
In order to minimize tax on disposal of property your affairs need to be structured in a way that follows the rules, and also doesn’t put the person receiving the property in a situation that large sums of monies may be owed. A will can also go very far in minimizing tax on disposal of property. Another option is to name beneficiaries of your specific assets like a registered retirement savings plan, registered retirement income fund, and death benefits like insurance policies.
This is why it’s extremely important to plan ahead of time and understand all the rules. Sitting down with your financial planner, accountant, and most importantly your lawyer yearly is essential in order to properly prepare, and to make changes in the event they are needed.
Watch this episode with real estate tax lawyer Eldad Gerb of Devry Smith Frank where he will discuss tax on disposal of property, probate and some of the rules associated with it.
For more information on real estate taxes, or if you’re looking for a tax lawyer contact:
Eldad Gerb, B.B.A., J.D.
Tax Lawyer / Devry Smith Frank LLP
Looking to Buy or Sell Real Estate in the GTA?
Buy, Sell, & Invest In Condos in the GTA!