Buttonwood Property Management
May 18th, 2024
In Canada, there are no inheritance taxes or inheritance tax exemptions. However, there are several scenarios where a person might be required to pay taxes on the property or properties they may have inherited.
Key Takeaways:
- In Canada there are no inheritance taxes or inheritance tax exemptions, although certain criteria may apply to the property.
- When selling a primary residence, capital gains are not taxable.
- Inheriting property as a form of secondary place of residence will be required to pay capital gains taxes
- A secondary place of residence, such as a vacation home, which is still part of an estate, may be subject to capital gains taxes.
- Selling an inherited property, or those received as a gift may be subject to 50% capital gains taxes as part of personal income tax.
Figuring out the basics of Canadian inheritance tax laws can be overwhelming. It is important to understand the tax consequences of inheriting property and how to navigate Canada’s rigorous tax system.
Inheritance taxes are the last thing anyone wants to think about when coming to terms with the loss of a loved one. Nonetheless, there are several important components to know about Canadian inheritance taxes. Although this guide covers some of the basic principles of property inheritance and taxes in Canada, individuals are encouraged to reach out to an experienced accountant, estate planner, financial advisor or tax professional.
