CRA Rules on Gifting Property to Children in Canada Explained

Описание: Many Canadians believe adding a child to their home title, gifting the house, or selling it for a dollar avoids taxes. Under Canadian tax law, all three are treated the same.

The CRA considers this a deemed disposition under Section 69(1)(b) of the Income Tax Act, meaning the property is treated as sold at fair market value - even if no money changes hands. This can trigger capital gains tax immediately.

There’s also a legal risk. Once a home is in your child’s name, it may become exposed to divorce settlements, creditor claims, or lawsuits.

A smarter approach is planning ownership and transfers properly. For married couples, Section 70(6) allows a spousal rollover at death, deferring taxes. For children, advanced planning using alter ego trusts, joint partner trusts, or testamentary trusts can help control timing, taxes, and protection.

All relevant tax sections are listed below. This isn’t opinion — it’s written into the tax code.

00:00 – Why Gifting a House Isn’t Tax-Free in Canada
00:35 – CRA Deemed Disposition Explained
01:10 – Section 69(1)(b): How CRA Treats Home Transfers
01:55 – Capital Gains Tax on Gifted Property
02:35 – Legal Risks of Putting a Home in a Child’s Name
03:15 – Spousal Rollover Rule (Section 70(6))
04:05 – Using Trusts to Pass a Home to Children
05:00 – Planning on Your Terms, Not CRA’s

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