My parents and I are looking into buying a vacation home…

Essentially as a Canadian resident you have to declare income world wide.

So if the house is in your name and it appreciates in value over the years until you sell it you will have to pay capital gains tax.

If you inherit the property then you don't pay tax.

But there is a deemed disposition at fair market value so the estate would pay the tax based on fair market value when the parent/parents on title die.

If you are the sole beneficiary then it may not make much difference.

And if you are thinking you may want to hold onto this home or your kids one day then having it start out in your name may make the most sense.

If properties don't really appreciate in Georgia then this may be a non-issue.

Does that help?

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It's not sales tax but capital gains tax which is a tax on the increase in value of the property.

It is not declare unless you earn income from it or income when you sell it.

That is all correct except for the last part. You would not pay the tax. The estate would.

And the tax is based on the increase in value so if the house is bought for $500K and sold for $600K then the capital gains is $100K and so $50 K would count as income for tax purposes.

OK

When someone dies their assets are all part of their estate.

And the estate has to pay taxes and also probate fees (this is a fee paid to the court) and then all the debts of the deceased.

In Canada there is no inheritance tax so you get your inheritance without having to pay any tax on it. Any taxes owing by the deceased or that must be paid at their death are all paid by the estate. It comes off ahead of what you would inherit.

You are very welcome.