Inheritance tax laws

harley · Post by **harley** » Wed Jun 12, 2013 11:13 am

I am a Canadian living in the USA. I am a deemed Canadian non-resident according to Revenue Canada. I will eventually be receiving a Canadian inheritance from an elderly Canadian relative. What are the tax ramifications, US and Canada, for me as a beneficiary of this inheritance? I.e., tax rate, US & Canada, etc. Thanks for your input!

nelsona · Post by **nelsona** » Wed Jun 12, 2013 1:35 pm

Canada has no inheritance tax, regardless of what your residency status. Everything they have will be deemed sold the day they die, and the estate pays whatever cap gains tax might arise from such dispositions.

US has no inheritance tax either. It has estate tax. Since your Cdn relative is not a US person, there will be no estate tax for them to pay (unless possibly they hold some US property at death).

harley · Post by **harley** » Sat Jul 06, 2013 11:21 pm

Could I have the inheritance deposited into a Canadian bank account or would I have to have it deposited into a bank account in the USA? Since I am a non-resident, are there taxes or penalties if I leave the inheritance in Canada?

JGCA · Post by **JGCA** » Sun Jul 07, 2013 10:37 am

It does not matter where the funds are deposited as long as you report the bank accounts to the IRS as foreign controlled bank account and report any interest income earned on this account to the IRS, as explaine the capital you received from the estate is tax free its may be subject to reporting and disclosure however if you foreign bank accounts exceed $ 10,000.

harley · Post by **harley** » Mon Jul 08, 2013 6:16 pm

Thanks for the info!