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Gifted Foreign Property Taxes

S

sj1234567

Star Member
Aug 11, 2016
168
45
Hi All,

I am asking a question on behalf of a friend. Before coming to Canada, her parents have gifted their house to my friend. Then she came to Canada as a student, later transferred to a work permit and recently became a PR. She usually files her taxes through HR Block. Currently, her parents live in the said house.

Now her questions are as follows.

1. Does she have to pay property taxes to Canada on the above property?
2. Should she have declared the information of that property at any point?

My friend thanks in advance for all the help!

Best,
 
T

torontosm

Champion Member
Apr 3, 2013
1,677
261
sj1234567 said:
Hi All,

I am asking a question on behalf of a friend. Before coming to Canada, her parents have gifted their house to my friend. Then she came to Canada as a student, later transferred to a work permit and recently became a PR. She usually files her taxes through HR Block. Currently, her parents live in the said house.

Now her questions are as follows.

1. Does she have to pay property taxes to Canada on the above property?
2. Should she have declared the information of that property at any point?

My friend thanks in advance for all the help!

Best,
Click to expand...
If your friend owns the house (which it sounds like she does), and the house is worth > $100,000, then yes, she needs to report it on her annual tax filings. She won't have to pay any property tax, and will only have to pay income tax if her parents are paying her rent to live in it.
 
canuck_in_uk

canuck_in_uk

VIP Member
May 4, 2012
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torontosm said:
If your friend owns the house (which it sounds like she does), and the house is worth > $100,000, then yes, she needs to report it on her annual tax filings. She won't have to pay any property tax, and will only have to pay income tax if her parents are paying her rent to live in it.
Click to expand...
As her parents live there, the property likely falls under personal use and does not need to be reported. I doubt she is making a profit off of her parents.
 
T

torontosm

Champion Member
Apr 3, 2013
1,677
261
canuck_in_uk said:
As her parents live there, the property likely falls under personal use and does not need to be reported. I doubt she is making a profit off of her parents.
Click to expand...
Even if the parents are living rent free, the asset still needs to be reported if it is worth more than $100k
 
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