In Ontario, there may be tax implications if you transfer title to a property to your spouse, depending on the circumstances of the transfer.
If the transfer is made as a gift, meaning no money changes hands and no consideration is received, there will generally be no immediate tax implications for either spouse. However, there may be potential tax consequences down the road, such as when the property is sold, as the Canada Revenue Agency (CRA) may consider the transfer to be a “spousal rollover” for tax purposes.
If the transfer is made for consideration, such as the payment of money or the assumption of a mortgage, there may be immediate tax implications. For example, if you transfer the property to your spouse for less than its fair market value, the CRA may consider this to be a “deemed disposition” for tax purposes, and you may be required to pay capital gains tax on the difference between the fair market value of the property and the amount for which it was transferred.
It’s important to note that tax laws and regulations are complex and subject to change, and the above information is general in nature. It’s always a good idea to consult with a tax professional or accountant to determine the specific tax implications of any property transfer.