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Debra, Lawyer
Category: Canada Law
Satisfied Customers: 100964
Experience:  Lawyer
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A husband and wife are listed on the deed to a property in

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A husband and wife are listed on the deed to a property in Ontario as joint tenants. They purchased the property about 20 years ago. The husband died about 3 months ago in a foreign country which was also his birthplace. Is the wife required to report the husbands death? Are there particular tax implications now that the husband has died? Must the deed be "updated" to reflect that the wife has become the sole owner of the property before it can be sold?
Was this their principal residence?
Customer: replied 4 years ago.

This was husbands principal residence for about 1 year. It was the wife's principle residence ("off and on") for about 5 years. Currently it is one of their children's principle residence.

There will be tax consequences as there will be capital gains tax to pay on the property assuming it increased in value since it was acquired.

There is a deemed disposition at fair market value of all assets at death.

So one half of the property will be taxed for capital gains now and the other when the property is sold.

The real estate lawyer will be able to do both steps at once if the house is going to be sold shortly.
Customer: replied 4 years ago.

Something else I would like to know: sometime in 2005 both the husband and wife gave up their Canada Immigration cards. What effect does this have on taxes due at the time of the husbands death and when/if the property is sold at some future date?

As a non-resident there will be an automatic 25% withholding tax but when the estate or the wife file returns if that is too high they will get a refund.
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