09 arctic cat m8
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Heard from a friend truedope put in an inheritance tax anyone hear about this!?
Canada’s inheritance tax
- Thread starter 09 arctic cat m8
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pipes
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morerpmfred
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Double dipping. We already have capital gains tax. The goal is to have our kids/grandkids inherit our stuff. We leave our house to the kids. They have to sell it to pay the tax because they can not get a mortgage to buy it out from the estate. Capital gains is what %40 now?
What is the inheritance tax going to be? Another 40% ?
What is the inheritance tax going to be? Another 40% ?
52weekbreak
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Doesn't anybody look anything up anymore? First thing that came up on Google:
https://turbotax.intuit.ca/tips/canada-inheritance-tax-laws-information-463
https://turbotax.intuit.ca/tips/canada-inheritance-tax-laws-information-463
Bnorth
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It's 50% of the gain taxed at whatever tax bracket you're in when you claim it and it's not applicable to primary residences. Sell it before you kick and divide the cash as you see fit.
there's no fact checking on S&M bud
DaveB
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from the first line:
Sounds like a cleverly worded way to say, YES there is an inheritance tax.
Example...say I, a poor slob inherit my fictitious multi-billionaire uncle's house. OK...treat it like a sale and I get charged GST on a 7 million dollar house. Newsflash: I can't afford that.
Last edited:
retiredpop
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If the uncle called it his principal residence and lived there for at least 2 of the last 5 years there is no capital gains when he dies so there wouldn't be a big tax hit on his estate. There is no GST on a used home and even if there was you're not buying it anyway. But if you chose to sell the house then you will get hammered for capital gains because you didn't live there for 2 years out of the last five. At least that's my understanding of how it works but I'm not a lawyer. I guess if you have a rich uncle and he is going to leave you his house tell him you're moving in right now. Maybe that would get you around the principal residence thing.
Stompin Tom
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do what the rednecks do, if your dad dies, marry your mom, then no inheritance tax.
52weekbreak
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In Canada, there is no inheritance tax. Instead the CRA treats the estate as a sale, unless the estate is inherited by the surviving spouse or common-law partner, where certain exceptions are possible. This means that the estate pays the taxes owed to the government, rather than the beneficiaries paying. By the time the estate is settled, the beneficiary should not have to worry about taxes.
If a portion of the estate is in RRSP's which is income that has been put aside tax free until it is withdrawn as income, the tax on that has to be paid when it is withdrawn. Basically, the estate needs to wrap up and pay any outstanding taxes before it goes to the beneficiary to which it is transfered tax free. In th case of an asset you receive, if you choose to liquidate it, you would have to pay the applicable taxes. In the house example, all you would have to do is sell your principle residence and move there for the required time. It might be two years but that seems longer than it used to be.
https://turbotax.intuit.ca/tips/do-you-have-to-pay-capital-gains-when-you-sell-your-home-2357
Nothing has changed in any meaningful way since we sold my mother's condo and an investment property she owned at a substantial profit in 2012. She paid capital gains on the investment property which seem reasonable at the time given the amounts involved and paid nothing on the doubling in value of her principal residence. It would make no difference if it was part of her estate. You still have to file the deceased's taxes but are free and clear after those are paid.
If a portion of the estate is in RRSP's which is income that has been put aside tax free until it is withdrawn as income, the tax on that has to be paid when it is withdrawn. Basically, the estate needs to wrap up and pay any outstanding taxes before it goes to the beneficiary to which it is transfered tax free. In th case of an asset you receive, if you choose to liquidate it, you would have to pay the applicable taxes. In the house example, all you would have to do is sell your principle residence and move there for the required time. It might be two years but that seems longer than it used to be.
https://turbotax.intuit.ca/tips/do-you-have-to-pay-capital-gains-when-you-sell-your-home-2357
Nothing has changed in any meaningful way since we sold my mother's condo and an investment property she owned at a substantial profit in 2012. She paid capital gains on the investment property which seem reasonable at the time given the amounts involved and paid nothing on the doubling in value of her principal residence. It would make no difference if it was part of her estate. You still have to file the deceased's taxes but are free and clear after those are paid.
whoDEANie
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It doesn't affect him now, so what would he care? If he still had substantial inheritance coming, we'd be safe for sure.
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