I'm a Canadian residing in the US.
I will be inheriting some money from a Canadian relative and I have read I will be hit with a 25% inheritance tax by the Canadian government as a non-resident, which my siblings living in Canada would not pay.
But I've also read that the Canadian-US tax treaty may lower this tax. Could you tell me how this would work?
Inheritance tax for Canadians in US
Moderator: Mark T Serbinski CA CPA
This is not true.
There may be 25% withholding on the gains/income after you inherit but before you take possession(The same would apply to extra income your siblings in Canada might get but they would simply include it on their return). , but any tax that is owed on death is paid by the deceased and estate.
You pay no tax, either in Canada or US on the inherited moneys/property.
There may be 25% withholding on the gains/income after you inherit but before you take possession(The same would apply to extra income your siblings in Canada might get but they would simply include it on their return). , but any tax that is owed on death is paid by the deceased and estate.
You pay no tax, either in Canada or US on the inherited moneys/property.
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No, that would be your final payment.
As I said, it would not be on the entirety of the Inheitance. It would be on the few dollars (if any) that the estate would owe you for income eraned between the death, and final receipt of the inheritance, It isn't really anything to worry about.
The income would also be reported on your uS return, and then the 25% Cdn tax coukd be used as a credit.
As I said, it would not be on the entirety of the Inheitance. It would be on the few dollars (if any) that the estate would owe you for income eraned between the death, and final receipt of the inheritance, It isn't really anything to worry about.
The income would also be reported on your uS return, and then the 25% Cdn tax coukd be used as a credit.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
What you may be thinking of is when an estate is distributed before the executor has ensured thet the deceased and estae is tax compliant. It rarely gets to this, if done preoperly.
In fact, the red tape associated with withholding, id worse that simply getting complinat, so an executor rarely disburses before being compliant.
In fact, the red tape associated with withholding, id worse that simply getting complinat, so an executor rarely disburses before being compliant.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing