I have a client who inherited a condo in Florida jointly with his sister. Two years later, he gifted his share to his sister. Does he report the Capital Gain using FMV on inheriting it and FMV as of the date of the gift?
Yes. Tax on the gain in equivalent Canadian dollars (unless it was his principal residence for any of that time). But, don’t forget to fill out the T1135 if applicable.
Transfers (gifts) made to related parties are considered to be made a market value regardless of the amount or lack thereof on the contract. The T1135 might not apply if is was personal and not a commercial (rented) property.
You have to report ownership of property with a FMV of $100,000+ CAD, regardless of rental income.
Thank you!
Thank you Nezzer!
Not if it is personal use.
Well. I just looked it up, and you are correct. Don’t I feel foolish. 
All these years, I’ve been filing T1135s to report clients’ personal use properties!
Thanks for setting me straight @benoit.associes1 and @stuckinmydungeon
I learned something today.
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Actually, the T1135 is based on a cost of $100,000 (Cdn$); not fair market value.
we all learn something everyday. also, note to @kevin Kevin, the FMV is used on option 7 on the T1135 for assets in CAnadian brokerage account.
What I was saying was that the requirement to file a T1135 is based on having $100K (Cdn$) COST of foreign investment assets, not $100K of FMV.
Hi Kevin,
i was just pointing out on the post that category 7 required entry of the FMV of the assests held in a canadian brokerage account. It can catch some off guard if they enter the cost numbers. category 1-6 do enter the Cost.
Yes, that’s true.