22 Dec 2021 11:38 AM:
GuyT, that is oK for inheritance tax since there will be no transfer of assets upon death of the grantor.
However, as I said much earlier, the imputed tax is levied on all real estate property that is used by the owners, so having a wife or family member living in one and the husband or family member living in the other one does NOT avoid the imputed income being added to the tax base of the owner. This applied to both residents and non-residents and to all property used by the owners, primary residence, holiday residence or any other residence available for owner use whether it is used or not.
The strategy mentioned by Kavanagh does not work.
The only possibility might be by signing a rental contract with a family member, but there needs to be proof that the family member is paying actual rent at market price. If the family member is the wife, even this does not work if like, most couples, the tax is paid by the family unit, because there are tax advantages iin doing so, although not for the imputed part of the income.
This message was last edited by lobin on 12/22/2021.
Thread:
Non res tax- ouch!!
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