Deceased’s Principal Residence – But I thought it wasn’t taxable!

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.

Tax on RRSP/RRIF’s at Death – Does the Estate or RRSP/RRIF beneficiary pay?

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?

Are Executor Fees Taxable?

If you have been named as an Executor, you are most likely a family member, friend, or trusted advisor to the deceased. It may be your first time acting as Executor or maybe you have fulfilled this role several times over the years. If this is your first time, then I hope you are not […]