Précis: Ms. Ashworth’s husband transferred his half of the family home to her at a time when he had outstanding tax liability. The Crown agreed that Ms. Ashworth had provided consideration in the form of assuming 50% of the mortgage on the property. The issue was whether paying down the line of credit of her husband’s corporation was also consideration. The Crown argued that since she was a signatory on that line of credit only 50% (i.e., her husband’s share) was consideration for the transfer of the home. The Tax Court rejected the Crown’s position and allowed the appeal except to the extent of $6,730 (relating to some credit card transactions). There was no order as to costs.
Ashworth v. R. – TCC: Taxpayer paid down husband’s corporate line of credit thus providing consideration for transfer of husband’s share of home to her – Subsection 160(1)Plus >