All Forum Posts by: Mitchell P.

@Mitchell P.

If it is a bungalow with an accessory apartment is it even classified as a duplex?  What does it say in the land registry?

A question I forgot to ask above:  Is your Dad by any chance a guarantor on the mortgage note?

You could "gift" half to your father, but there will still be a disposition.

Mitchell:

Whether you can sell (easily) half the interest is going to depend a couple things:

• is the duplex registered as a single structure on a single property number with a single tax account, or does each half have a separate parcel and tax account?
• do you own the entire building?

If you own the entire building, you could sell a 50% interest to your father (as a tenant in common), but you would trip the due on sale clause of your mortgage and the lender may accelerate repayment of the note.

Since the building has appreciated, you will also be looking at a taxable event and will owe capital gains on the sale and, potentially, a CRA recapture.

It might be best to review with your accountant before pursuing this plan.