Canada Law
Ask a Canada Law Question, Get an Answer ASAP!
Connect one-on-one with {0} who will answer your question
Answered in 14 minutes by:
9/9/2013
VerifiedThank you for your question.
Before I begin I want to explain a bit about how the site works.
It may be that I will find that I need to gather further information from you. As well, it's quite possible that you may feel the need to ask me additional questions for further clarification.Please do not worry that you will be charged additionally if I ask you questions or if you need to ask me questions. That is not at all how the site works.
As well, please understand that as a careful lawyer I will always give you an honest answer even if the answer is sometimes not what you were hoping for.
Finally, as we go through the process please do not feel rushed if I ask you a question. You are always free to take your time to gather more information before you post back. As well, please understand that even after you rate me the post will not lock and you could always come back for further clarification if you think of something a bit later on down the road.
Are you saying you are going to live in the your own home and your friend will live in the condo.
Is your friend going to gain any interest in the condo?
Before I begin I want to explain a bit about how the site works.
It may be that I will find that I need to gather further information from you. As well, it's quite possible that you may feel the need to ask me additional questions for further clarification.Please do not worry that you will be charged additionally if I ask you questions or if you need to ask me questions. That is not at all how the site works.
As well, please understand that as a careful lawyer I will always give you an honest answer even if the answer is sometimes not what you were hoping for.
Finally, as we go through the process please do not feel rushed if I ask you a question. You are always free to take your time to gather more information before you post back. As well, please understand that even after you rate me the post will not lock and you could always come back for further clarification if you think of something a bit later on down the road.
Are you saying you are going to live in the your own home and your friend will live in the condo.
Is your friend going to gain any interest in the condo?
Yes it is.
So essentially, it is fair and honest to say that you are holding title in trust for your friend.
And if that's the case you should not have to worry about taxes.
As the title is in your name when you/she go to sell the condo you will have to show that you were holding title in trust for her and as this was her principle residence no capital gains tax should be paid.
There is no concern about having to pay tax on the payments she is making toward the mortgage.
I suggest that you do two things.
First I suggest you run this by your accountant to confirm the accountant thinks you will be OK down the road.
Second, I suggest you have a lawyer (your friend should pay) draft an brief indemnity agreement where she agrees to indemnify you if you should incur any taxes or other costs because of this arrangement including any lawsuits for damages etc and that she also agree to have sufficient insurance.
If your name is XXXXX XXXXX and someone gets hurt for example. You are the one who will be sued.
You can contact the Law Society and use their Lawyer Referral Service. You will be given the name of a lawyer and can consult with the lawyer and the first half hour will be free.
The number is:
1-800-268-8326 or(NNN) NNN-NNNN(within the GTA)
Let me know if you need any further clarification.
So essentially, it is fair and honest to say that you are holding title in trust for your friend.
And if that's the case you should not have to worry about taxes.
As the title is in your name when you/she go to sell the condo you will have to show that you were holding title in trust for her and as this was her principle residence no capital gains tax should be paid.
There is no concern about having to pay tax on the payments she is making toward the mortgage.
I suggest that you do two things.
First I suggest you run this by your accountant to confirm the accountant thinks you will be OK down the road.
Second, I suggest you have a lawyer (your friend should pay) draft an brief indemnity agreement where she agrees to indemnify you if you should incur any taxes or other costs because of this arrangement including any lawsuits for damages etc and that she also agree to have sufficient insurance.
If your name is XXXXX XXXXX and someone gets hurt for example. You are the one who will be sued.
You can contact the Law Society and use their Lawyer Referral Service. You will be given the name of a lawyer and can consult with the lawyer and the first half hour will be free.
The number is:
1-800-268-8326 or(NNN) NNN-NNNN(within the GTA)
Let me know if you need any further clarification.
VerifiedDebra and 87 other Canada Law Specialists are ready to help you
How JustAnswer works
Describe your issueThe assistant will guide you
Chat 1:1 with a lawyerLicensed Experts are available 24/7
100% satisfaction guaranteeGet all the answers you need
Related Canada Law Questions
I am new to home buying in Canada & very new permanent
I am new to home buying in Canada & very new permanent resident here. I have below questions as first timer:- 1. Any condo or townhouse I purchase most likely 3 BR 2 BA- how can i ensure that it is a … read more
Debra
Lawyer
Doctoral Degree
146,155 satisfied customers
My common law ex and I split up 2 years ago. I let him stay
My common law ex and I split up 2 years ago. I let him stay in the house and he has been paying the mortgage with no issues. We are both on mortgage and title. A year ago I tried to get the ball rolli… read more
Debra
Lawyer
Doctoral Degree
146,155 satisfied customers
Province of Ontario my wife and i are separating and leading
Province of Ontario my wife and i are separating and leading to a divorce after 20 years. She has moved out of the home we jointly own and rented an apartment on a 2 year lease both of us work and sal… read more
Debra
Lawyer
Doctoral Degree
146,155 satisfied customers
In British Columbia canada can I sell my home thats worth
In British Columbia canada can I sell my home thats worth $800,000 to my daughter for less than asking price by a substantial amount of $300,000 ? … read more
Debra
Lawyer
Doctoral Degree
146,155 satisfied customers
I bought a small one bedroom condo 9 years ago. After living
I bought a small one bedroom condo 9 years ago. After living there for two years, I moved out and rented to a bigger two bedroom apartment as my son was born and needed more space. Since I moved out o… read more
Debra
Lawyer
Doctoral Degree
146,155 satisfied customers
I separated from my spouse about 4 years ago and moved out
Hi. I separated from my spouse about 4 years ago and moved out of our matrimonial home. My ex remained and took care of both of our kids aged 7 and 4 at that time. I paid her child support and alimony… read more
Debra
Lawyer
Doctoral Degree
146,155 satisfied customers
Hello, I have a question about my property. Bought in 2006
Hello, I have a question about my property. Bought in 2006 for 180,000. In 2008 I moved into my boyfriends house and rented out the condo. I never made a profit on renting the condo, in fact it has al… read more
Debra
Lawyer
Doctoral Degree
146,155 satisfied customers
My girlfriend & I ended a 3.5 year relationship in November
My girlfriend & I ended a 3.5 year relationship in November '11. In September 2008, we purchased a condo together (she had the funds for the downpayment and the mortgage was approved based on her inco… read more
Debra
Lawyer
Doctoral Degree
146,155 satisfied customers
My mother passed away in Dec. Before she passed, she had an
My mother passed away in Dec. Before she passed, she had an agreement with my brother that he could live in her house and pay 500.00 a month as a rent to own. She needed the extra money to supplement … read more
Debra
Lawyer
Doctoral Degree
146,155 satisfied customers
My sister and I indherinted our grandmas mortgage-free condo
My sister and I indherinted our grandma's mortgage-free condo and are joint tenants of the property. Currently, I reside in the property and have been paying half of the rent, all Strata fees, Propert… read more
Debra
Lawyer
Doctoral Degree
146,155 satisfied customers
me and my wife are separating. I was the only one working when
me and my wife are separating. I was the only one working when we were married. We had overseas account that was invested as kids funds under my wife's name. She doesnt want to release the fund to be … read more
Tom B.
Lawyer
LLB Bachelor of Laws
2,264 satisfied customers
I have purchased a condo and rent it out. The transaction c&
I have purchased a condo and rent it out. The transaction concluded in 2010. We had ownership transfer from interim occupancy to permanent now. I claimed interest on the loan, insurance, property taxe… read more
Debra
Lawyer
Doctoral Degree
146,155 satisfied customers
HI I purchased a house with my parents 3years ago. We are
HI I purchased a house with my parents 3years ago. We are tenants in common. Originally my parents were to down pay $100,000, which they could not come up with on the day of the signing. So long story… read more
Debra
Lawyer
Doctoral Degree
146,155 satisfied customers
this is for real estate law, we own several properties in quebec,
this is for real estate law, we own several properties in quebec, if we now want to sell a triplex, how much on capital gains taxes will there be charged? and do we have a one time taxexcemption as we… read more
Debra
Lawyer
Doctoral Degree
146,155 satisfied customers
Ive my partner and I have lived together for 3+ years in Ontario,
I've my partner and I have lived together for 3+ years in Ontario, are we considered common law, even if the 'intent' has not been there. i.e.: I've not taken his name, we do not refer to one another … read more
Ulysses101
Litigator, Barrister and Solicitor
LLB
4,846 satisfied customers
Hi there, If my parents buy a house and rent it to me to cover
Hi there, If my parents buy a house and rent it to me to cover the basic costs (mortgage, property insurance) OR rent slightly below those costs, are they allowed to zero out the income from this rent… read more
Debra
Lawyer
Doctoral Degree
146,155 satisfied customers
My father purchased a condo for me almost 15 years ago now.
My father purchased a condo for me almost 15 years ago now. He owns his own home (no mortgage). Our condo only has about $4500 left to pay. I believe he claimed rental income from us; therefore, if he… read more
Debra
Lawyer
Doctoral Degree
146,155 satisfied customers
My daughter purchased a modular home with a friend, the mortgage
My daughter purchased a modular home with a friend, the mortgage & title are in her name, her friend and her father as he was a cosigner on the morgage. It is a Genworth mortgage, there was no down pa… read more
Debra
Lawyer
Doctoral Degree
146,155 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.
JustAnswer in the News:
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
What Customers are Saying:
Your Expert confirmed everything that I had been told, and didn't want to believe. Thank you for putting my mind at rest.
Canada
This has been very helpful. I'm glad to see that lawyers and sites like this exist. Thanks for your help.
Halifax, NS
Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises!
Edmond, OK
My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer.
Redwood City, CA
I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight.
Wichita, KS
PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent.
Houston, TX
Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!!
Atlanta, GA
< Previous | Next >
Meet the Experts:
LawyerProfessor
Lawyer
838 satisfied customers
Experienced Litigation Lawyer in Ontario since 1999 and NY since 1997
Debra
Lawyer
146,155 satisfied customers
Lawyer
Daniel Freudman
Lawyer
2,943 satisfied customers
Lawyer
ToLawyer
Lawyer
2,434 satisfied customers
Expert
JJL11
Lawyer
1,432 satisfied customers
Licensed to Practice law in Ontario for over 25 years.
Jeremie John Martin
Lawyer
1,300 satisfied customers
I'm a bilingual attorney for the province of Quebec who goes to Court often for many clients.
Counsel Creed
Lawyer
859 satisfied customers
associate at GTA law firm
< Previous | Next >
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.
