The Government of Canada implemented the Underused Housing Tax (UHT) on June 9, 2022, which impacts certain residential property owners as of December 31, 2022. If you are a Canadian citizen or permanent resident (except in capacity as a partner or trustee*), no action is required on your part. Anyone else that owns residential property, […]
Tax treatment of a principal residence after the owner dies is discussed.
Most Canadian homeowners are aware that generally they are not taxed on the increase in value of a property that qualifies and is designated as their principal residence. There are a number of criteria to be met in order for a property to qualify as a principal residence for all years owned which I will not be going into detail here. I would specifically like to discuss how a person’s principal residence is taxed after death where the property is sold and the cash proceeds distributed to the beneficiaries.
General tax treatement of RRSP/RRIF’s upon death and the liability for those taxes is discussed.
The fair market value of your RRSP/RRIF account is included in income on your Date of Death T1. I am often asked who is responsible to pay the income taxes relating to the RRSP/RRIF – the Estate or the designated beneficiary of the RRSP/RRIF?