Tax-Free Transfer
A gift of property to a close relative (spouse, parent, child, sibling, grandparent, grandchild) is exempt from capital gains tax. The recipient inherits the giver's cost basis and purchase date. For real estate, purchase tax is reduced to 1/3 of the normal rate. For all other assets (shares, investments, cash), the transfer is completely tax-free.
Definition of 'Close Relative'
The tax definition of close relative includes: spouse, parent, parent of spouse, descendant, descendant of spouse, sibling, and the spouse of any of these. Cousins, uncles/aunts, and friends do not qualify.
Important Note: The information on this website is for general informational purposes only and does not constitute professional tax advice. Consult a qualified tax advisor before making financial decisions.