Can I split capital gains, with my spouse, on the sale of a cottage that I co-owned with my father?

[arsharora]

Thank you for choosing TurboTax. You can’t split a capital gain 50/50 with your spouse.

This is because of the Attribution Rules, tax rules which have been especially created to limit income splitting (shifting income from a family member with a higher income to a family member with a lower income to reduce the overall tax a family has to pay). You can read the details about the Attribution Rules in the Canada Revenue Agency’s IT511R – Interspousal and Certain Other Transfers and Loans of Property.

Please check out our blog: Can I Split My Capital Gain With My Spouse?

Your capital gains must be reported separately on each of your own returns in the year they were incurred. In your case, gains will be reported on yours and your father's return only. 

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