Are Gifts Given to Family Members Taxable to Them? Watch Video
Allan Madan, CPA, CA
Taxation on gifts to family members can be tricky. Usually the recipient Read More…
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The information provided on this page is intended to provide general information. The information does not take into account your personal situation and is not intended to be used without consultation from accounting and financial professionals. Allan Madan and Madan Chartered Accountant will not be held liable for any problems that arise from the usage of the information provided on this page.
ABOUT THE AUTHOR
ALLAN MADAN
CPA, CA
Allan Madan is a CPA, CA and the founder of Madan Chartered Accountant Professional Corporation. Allan provides valuable tax planning, accounting and income tax preparation services in the Greater Toronto Area.
If I am joint owner of a Mobile home with my mother, and she dies, I am now sole owner (right of survivorship)…
1. When I sell said Mobile,
Is ANY or ALL of INCOME from sale called Capital Gain ???
2. This home is my mother’s PRINCIPAL resident,
Does that mean : 1/2 of Sale is Capital Gain to me ??
3. The Pad rent, Hydro, Insurance premiums paid, Sewer and Property Tax , all need to be PAID until property (Mobile) sells.
Are these items DEDUCTIONS off of the Capital Gain ??
Since the mobile home was your mother’s principal residence, you do not have to pay capital gains tax if you sell the home for what it was worth (market value) on the date of her death. If you sell it for more, then the difference (i.e. sales proceeds less market value on date of death) will be treated as a capital gain. One half of the capital gain will be included in your income in the year of sale.
The carrying costs for the home that you paid for are non-deductible.