Dear Sir:
I understand that there is no " Inheritance Tax " in Canada,- but also believe that the government CAN claim a percentage of the value anyway, via different guises.
My aged father owns two properties, one valued at about $100,000 and the other at about $10,000.
He is not comfortable in giving up sole ownership of these properties and in having me as a co-owner,- and I respect his feelings on the matter,- so just how much money do I stand to lose upon inheriting the two properties?
Thank you
Taxes on Inherited Property
Moderator: Mark T Serbinski CA CPA
Whether he 'gives' them to you now, or wills them to you later, the moment they pass to you they are 'deemed' to have been sold to you (either all or half), at the fair market value of that moment and subject to capital gains tax to be paid either by him (now) or by his estate (at death).
The capiatl gains he pays will be based on (a) what he paid for the properties, (b) their value when he gives them up, (c) the province in which he resides/dies, (d) what other income he has that year.
Something that might reduce said taxes, his if one of the properties is/was his principal residence, and if either property had any capital gains exemption back from the Mulroney years.
Phone up an accountant with the details I liosted an they can tell you.
<i>nelsona non grata... and non pro</i>
The capiatl gains he pays will be based on (a) what he paid for the properties, (b) their value when he gives them up, (c) the province in which he resides/dies, (d) what other income he has that year.
Something that might reduce said taxes, his if one of the properties is/was his principal residence, and if either property had any capital gains exemption back from the Mulroney years.
Phone up an accountant with the details I liosted an they can tell you.
<i>nelsona non grata... and non pro</i>