A deceased individual is considered to have disposed of each capital property owned by him/her immediately before death and may realize capital gains and/or losses.
If the total realized and deemed allowable capital losses for the year exceeds realized and deemed taxable capital gains for the year, the losses may be deducted in full, first against the other income of the year of death and next against other income of the three preceding years
About RRSPs and RIFFs
• If there is no surviving spouse to become the successor annuitant of an RRSP or RRIF plan, the fair market value of the plan will also be included on the decedent’s final tax return.
• A deceased individual may claim medical expenses for the 24 month period prior to death
Capital Gains, RRSPs & RIFFs: Just some of the tax issues
We are just scratching the surface of some of the other tax issues you need to be aware of. Not knowing about some of these issues could not only cause overpayment of taxes but also expose you to penalties for failure to comply with CRA and other agency requirements for properly managing an estate.
AG Tax LLP Can Help
As implied earlier, for Canadians, there are withholding tax, capital gains and estate tax ramifications related to owning, renting and selling US properties. Handling any of the critical issues incorrectly may result in significant tax problems. The remedy is effective planning and we can help you with that!
If you have any tax-related queries or need assistance with tax planning or filing please contact AG Tax. Our tax professionals are highly-experienced with US and Canadian tax laws and can provide you the right guidance to handle your tax situation.
Aylett Grant Tax LLP is a full service accounting firm with a dedicated team of experts, who are highly-qualified and experienced in handling situations related to US, Canadian, and other international tax laws. We can assist with:
- Canadian Personal and Corporate tax returns
- Cross Border Taxation and Business Planning
- US Personal and Corporate Taxation
- Disclosure of Foreign Assets and other information filings
- Retirement planning
- Estate Planning, Inheritance tax advice
To obtain a quote or to arrange for a consultation to discuss your tax related queries, please contact us at:
- 416-238-5920 (Greater Toronto Area, ON)
- 604-538-8735 (Greater Vancouver Area, BC)
- 780-702-2732 (Greater Edmonton Area, AB)
Disclaimer: The information in this publication is accurate as of the time of its publication. AG Tax assumes no responsibility for changes to tax legislation subsequent to the publication of this document. The information provided is for general information purposes only and should not be acted upon without seeking professional advice. If you would like to engage our services, please contact our staff and obtain authorization to send our firm confidential information. A client relationship is not created by the transmission of information. A client relationship is only formed with our firm when a scope and engagement letter signed by the firm and the potential client detailing the terms of engagement is present.
