Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
Level 2
posted Apr 30, 2024 2:35:07 PM

If I add my wife to the title of my house, are there tax consequences?

Hi All! 
I own my house outright. No mortgage.  I am the sole owner, living in Alberta.  In the event of my death I want my wife to avoid the cost and hassle of probate.  If I add her to the land title would there be disposition or capital gains tax issues? 

Many Thanks! 

0 1 1642
1 Replies
Returning Member
Apr 30, 2024 3:04:19 PM

Hi @vincej 
Adding a spouse to the title of a house generally does not have immediate tax consequences, but can affect capital gains tax if the property were to be sold in the future. The cost basis of the property is split between both spouses if the title is added, so both would be responsible for paying capital gains tax on their share of any gain if the property was sold. However, transferring the property to a spouse's name due to death can often be done on a tax-deferred basis and results in a step-up in the adjusted cost basis to the fair market value of the property at the time of death. We recommend seek advice from tax expert  before making any changes to the title of your house. To contact them, please follow this link: Contact Us.