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Debra, Lawyer
Category: Canada Law
Satisfied Customers: 100035
Experience:  Lawyer
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My mom died leaving me and my brother as the beneficiaries,

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My mom died leaving me and my brother as the beneficiaries, our mom had 180000 in Rrif. It was liquidated and we received 90000 each ,from what I understand the estate must pay the taxes which probably means us or we will get less.Would it be wise for us to buy the max allowed and buy rrsp before the years end to offset paying on the full amount.We live in quebec will this amount be added to my year income,roughly how much tax will one pay on 90000 thanks

Thank you for your question.

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Buying an RRSP has nothing to do with this tax issue.

This is not your tax liability.

The estate has to pay the tax.

If there is no other money in the estate then you do.

But the tax that is payable is based on the calculation of the estate earning the income and not you.

So this does not go into your tax return at all.

Let me know if you need any further clarification.
Customer: replied 3 years ago.

Okay if the estate must pay the taxes we have been issued 90000 each can this money be used, I would think that possibly it would be added to the deceased income and her estate would pay but if we have all her assets wouldn't the cra come after the beneficiaries.

Yes they would.

If the estate cannot pay then the beneficiaries must pay.

But you are paying the estate's taxes and not your own.

You do not declare this as income on your own tax returns.

You declare on your mother's Terminal Return.

Then you two pay the taxes if the estate cannot.
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