Canada Spousal Loan Agreement

– the interest rate which would have been agreed, having regard to all the circumstances, at the time of granting the loan between the parties which remained under the conditions. If you transfer existing non-registered assets in kind, so that your shares, bonds, ETFs or investment funds are transferred to your wife as part of the procedure, you must acknowledge any resulting capital gains or losses in your tax return. The market value of the investments at the time of transfer can be used to determine the amount of the spouse`s loan and the loan is considered a payment (consideration) that triggers deferred capital gains or losses for you. A lawyer could certainly be called upon to prepare the credit agreement, Ralph, but the main considerations are that the loan is a debt note at the current interest rate, the payments of which are made every year no later than 30 years. The maturity of 1 January, including the first year in which the loan is made (probably a partial year, on a pro rata basis). . . .

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