Can a One-Dollar Property Transfer Avoid Tax?

Reviewed October 2026. A transfer for one dollar or another amount below fair market value does not automatically avoid tax. Treatment depends on the parties, property use, relationship, residency and applicable rules.

Get advice before transferring

A transfer may be treated as a gift or a disposition at fair market value for tax purposes. Obtain an independent valuation and ask a tax professional about capital gains, principal-residence rules, rental use, land-title costs, GST or other consequences.

Non-resident and family transfers

Non-resident sellers may have additional reporting and withholding requirements. A lawyer should document whether funds are a gift, loan or sale and explain title and family-law consequences.

This article is general information, not tax or legal advice. Official source: https://www.canada.ca/en/revenue-agency.html