Mr T would like guidance with his dilemma. He owns a house in Toronto, which is in his name. He purchased the house in 2006 for $170,000. The house is now worth $450,000. His wife owns a cottage in Muskoka, which is in her name. She purchased the cottage in 2008 for $50,000. The cottage is now worth $200,000. Prior to 2006, neither Mr or Mrs T owned any properties. Mr and Mrs T were married in 2011. Mr T is being transferred to Vancouver BC. Therefore, he and his wife have decided to sell both the home and the cottage in December 2020.

Please explain the rules to Mr and Mrs T with respect to the tax implications arising from the disposal of the properties.

Question

Mr T would like guidance with his dilemma. He owns a house in Toronto, which is in his name. He purchased the house in 2006 for $170,000. The house is now worth $450,000. His wife owns a cottage in Muskoka, which is in her name. She purchased the cottage in 2008 for $50,000. The cottage is now worth $200,000. Prior to 2006, neither Mr or Mrs T owned any properties. Mr and Mrs T were married in 2011. Mr T is being transferred to Vancouver BC. Therefore, he and his wife have decided to sell both the home and the cottage in December 2020.

Please explain the rules to Mr and Mrs T with respect to the tax implications arising from the disposal of the properties.

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Mr T would like guidance with his dilemma. He owns a house in Toronto, which is in his name. He purchased the house in 2006

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