We own our home which we purchased in 2013 and a small investment property which we purchased in June 2018 for $750k. My partner wants me to take the smaller investment property which is valued at about $800k, and he will take our current home. I'm worried about tax though.
With the new rules, will I have to pay tax on the property when it is transferred to me? Also, my partner wants our accountant to calculate the income tax we owe before we divide our property. It seems like a waste of money since we will each need to do this again in six months at the end of the financial year. Is this what most people do when they separate?
A. Accepting a rental property as part of your settlement
You're talking about the bright-line test – a tax on the profits (or capital gains) from a property sale. The tax applies only to