How To Buy Your Kids a House in Canada

Three Generation Family Many Baby Boomers have paid-for homes, while their grown children are contemplating entering the housing market. Instead of letting them rent during their first foray after leaving the nest, it’s tempting to buy a second “investment” property with Junior as the main tenant.

Fully 10% of Canadian parents are considering this, according to TD Canada Trust, but you need to be aware of the full tax and estate-planning consequences.

There are at least four options, according to chartered accountants Kathy Munro and Caryn Walt, who wrote an insightful analysis in the Winter 2011 edition of PricewaterhouseCoopers’ Wealth and Tax Matters.  Read full article.

Great article. Because Candian taxes are so high and the tax laws so complicated, it’s worth paying an expert to sort out the best approach to helping your kids up that first rung on the real estate ladder. Not getting it right can cost many thousands of dollars in unneccessary taxes!