Do capitol gains apply? My wife has joint tenancy on her mother's property. Joint tenancy was entered in 2015 and a her mother passed away in 2015 after the joint tenancy agreement was put in place. My wife lived in the property for a couple of months in 2015. Can this property be designated principle residence for 2015? If not would the adjusted cost base be calculated from the date my wife became a joint tenant in 2015 or when the property was originally purchased in 2001 (significant difference in property value)?
I'm assuming the following in answering your question:
1) Prior to moving in with her mother, your wife occupied a residence with you, which is the principle residence for yourself and your wife.
If the foregoing is correct, then it is unlikely that your wife could claim her mother's residence as principle residence. As such, her portion of the capital gain on the property will be calculated as of the time she joined as joint tenant until the time her mother passed. Given that this all happened in 2015, the gain (IF ANY) would be minimal.
There would be no capital gain for the mother, as the house was the mother's principle residence.
I'm assuming the following in answering your question:
1) Prior to moving in with her mother, your wife occupied a residence with you, which is the principle residence for yourself and your wife.
If the foregoing is correct, then it is unlikely that your wife could claim her mother's residence as principle residence. As such, her portion of the capital gain on the property will be calculated as of the time she joined as joint tenant until the time her mother passed. Given that this all happened in 2015, the gain (IF ANY) would be minimal.
There would be no capital gain for the mother, as the house was the mother's principle residence.