# Tax Implications for Name Removal from Title



## james_graydon (Feb 15, 2013)

Currently I'm living in a house with my wife where my myself and my father are both on the title in joint tenancy. I'm wondering if there were any tax implications are by removing his naming and adding my wife's name... OR simply removing his name from the title and just leaving mine on. My father is currently retired and living in condo with my mom so the house isn't his principal residence.

The reason why we want to remove his name is because my wife and I want to do a major renovation to the house where we would be taking out a mortgage against the house to finance it. This way we wouldn't include my dad in the financing.

We're looking into consulting with an accountant but thought I'd float this question to you all knowledgable folks as well!


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## AltaRed (Jun 8, 2009)

How much of the house does your father own? And do you/he have the records to show how much money each put in, and who has been making the mortgage payments, etc.? If his name comes off title, he will be deemed to have sold his interest in the house at fair market value (whether any money changes hands or not)and will pay capital gains tax on any gain.

The other issue to check out is whether changes in title that you are contemplating might trigger land transfer taxes. Sometimes, other than between spouses such as in BC, title changes can trigger land transfer taxes.


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## james_graydon (Feb 15, 2013)

He owns 50% of it I'm assuming since it's just me and him on the title. There no mortgage on the house currently. Originally it was my grandparents and my father and my name was added on in 2000, my grandfather passed on in 2006 and a survivorship application was done in 2008 when I took out a small mortgage to do renovations (which I paid off in full a few months back).

Guess there's no way to avoid the tax-man eh?


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