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Legal Ease
Legal Ease, Lawyer
Category: Canada Tax
Satisfied Customers: 100067
Experience:  Lawyer
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I had a question about canadian capital gains on excluded property

Customer Question

hi i had a question about canadian capital gains on excluded property being taken by a spouse in case of separation /div. Can a deemed disposal date instead of marriage date be used for a non resident in this case?
1. non-resident canadian who had property in canada separates is the gain on value part of family asset or excluded property.
2. a non-resident sells property gain in value in country of origin later buys from these funds in canada after sep/div is the gain added to fam. property or excluded
3. A resident canadian sells overseas property and uses the funds to buy in canada (gain in valu in country of origin) after sep/ div is the gain added to family property or excluded
If the aim of the law is having each spouse be able to retain the property they brought into the relationship "excluded property" and the allow any other thing bought from this also to remain excluded ie "trace-ability" then the aim is obviously to benefit the individual to remain in possession of
Submitted: 2 years ago.
Category: Canada Tax
Expert:  Legal Ease replied 2 years ago.
Are you asking about capital gains tax or about how to valuate family assets for separation purposes?What province are you in?
Customer: replied 2 years ago.
British Columbia. Not tax but valuation for FAM issue
Expert:  Legal Ease replied 2 years ago.
OKAre you saying the assets were brought into the marriage and that is why they are excluded?Was there a common law relationship before the marriage?
Customer: replied 2 years ago.
Yes. They were brought into the marriage bought pre marriage. No common law before. After marriage other assets were bought from this pre marriage property though.
Expert:  Legal Ease replied 2 years ago.
The way this tends to work is that you valuate the property at the date of the marriage and of the date of the separation and that increase in value is considered a marital asset. The assets that are sold are not traced in most cases (but the family law Act that apply are still quite new and still developing in terms of what the court does with it). So it is generally a simpler calculation than you think. You value all your assets at the time of separation, taking half for jointly held assets, subtract all debts in your name, again taking half for jointly held debts and then you subtract the value of all gifts, inheritances and the value at the time of the marriage of all assets brought into the marriage.