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Canadian law. Can you tell me how the Canadian Government…

Canadian law. Can you tell...
Canadian law. Can you tell me how the Canadian Government figures Capital gains on property sold from an estate?
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Answered in 2 hours by:
3/16/2018
Legal Ease
Legal Ease, Lawyer
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The way this works is there is a deemed disposition at fair market value for all assets when someone dies.

If the property is not the testator's principle residence the estate pays capital gains tax if the asset appreciated in value from the time the testator acquired it until their death.

The capital gain is the fair market value of the asset at death less what was paid to acquire it less any capital improvements, legal fees, closing fees etc.

1/2 of the gain is included as income for tax purposes in the year of death.

If the estate holds onto the property and it appreciates then when it is sold the gain is the sale price less the price used at the time of death, which is fair market value.

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