For many Canadians the majority of their wealth is held in personally owned real estate. For most this will be limited to their principal residence however, investment in recreational and real estate investment property also form a substantial part of estates. Due to the nature of real estate, it is important to do estate planning to realize optimum gain and minimize tax implications.
Key Considerations for Real Estate Investment
- Real estate is not a qualifying investment for the purposes of the Lifetime Capital Gains Exemption
- Leaving taxable property to a spouse through a spousal rollover in the will defers the tax until the spouse sells the property or dies