tag:blogger.com,1999:blog-436024129575354145.post8533684075941832271..comments2024-03-28T12:41:21.857-07:00Comments on Estate Law Canada: Capital gains tax on the principal residence? Yes, if the tax is incurred while the house is in the estateLynne Butler, BA LLBhttp://www.blogger.com/profile/09790353197833765108noreply@blogger.comBlogger15125tag:blogger.com,1999:blog-436024129575354145.post-52301552363914898412018-12-15T21:45:03.888-08:002018-12-15T21:45:03.888-08:00I'm not an accountant, but I believe the capit...I'm not an accountant, but I believe the capital gains tax will NOT be waived. "Principal residence" does not mean "where you live". There has to be ownership as well. Since the beneficiary does not own it, he cannot declare as his principal residence. The estate owns the house and the estate doesn't get to own an exempt principal residence. As I said, I'm not an Lynne Butler, BA LLBhttps://www.blogger.com/profile/09790353197833765108noreply@blogger.comtag:blogger.com,1999:blog-436024129575354145.post-26793253677927502602018-12-13T22:25:01.200-08:002018-12-13T22:25:01.200-08:00Greetings Lynne,
Thank you for the time and effor...Greetings Lynne,<br /><br />Thank you for the time and effort that you take to make this an excellent information portal for the general public.<br /><br />My related question involves a single widowed elderly woman who lived in her principle residence for 60 years and passed away while living there. In her will she left her principle residence to her only child, who had no principle residence, Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-436024129575354145.post-69733651152840499402018-07-02T12:26:02.771-07:002018-07-02T12:26:02.771-07:00Your best bet would be to ask an accountant.
Lynn...Your best bet would be to ask an accountant.<br /><br />LynneLynne Butler, BA LLBhttps://www.blogger.com/profile/09790353197833765108noreply@blogger.comtag:blogger.com,1999:blog-436024129575354145.post-67702522648023590532018-07-01T12:51:06.420-07:002018-07-01T12:51:06.420-07:00Thank you for this very useful blog. Perhaps you c...Thank you for this very useful blog. Perhaps you can help with a question: While the residence is in the hands of the Estate, and fees are incurred (property tax, condo fees, routine maintenance), can those fees be used to reduce the amount of the capital gain? (Similar to how a gain in stocks can be reduced by investment fees.) Thank you.Anonymoushttps://www.blogger.com/profile/00374335648834822970noreply@blogger.comtag:blogger.com,1999:blog-436024129575354145.post-89886209800539044042018-06-23T05:02:10.818-07:002018-06-23T05:02:10.818-07:00Thank you for sharing this information. It has hel...Thank you for sharing this information. It has helped me to know more about<br /><a href="https://www.bajajallianzlife.com/save-tax.jsp/" rel="nofollow">what is capital gain</a>Anonymoushttps://www.blogger.com/profile/05348633905764451859noreply@blogger.comtag:blogger.com,1999:blog-436024129575354145.post-45257168897333773092018-02-27T23:20:05.144-08:002018-02-27T23:20:05.144-08:00Thank you for the inspiration. This article is ver...Thank you for the inspiration. This article is very helpful and informative. <br /><br />Small Business Taxhttp://www.parisfinancial.com.au/small-business-tax-servicesnoreply@blogger.comtag:blogger.com,1999:blog-436024129575354145.post-35888216391145767372016-05-16T09:28:51.926-07:002016-05-16T09:28:51.926-07:00Lynne thank you for your reply. First off I made a...Lynne thank you for your reply. First off I made a mistake. They had it as joint tenants. I always get that part confused as to which is which. Second there is no conflict over the proceeds when the house sells. She has no issues with giving us the money as per the will. It is mostly the tax situation that is a concern. Thanks again.Anonimoushttps://www.blogger.com/profile/02764358940984300804noreply@blogger.comtag:blogger.com,1999:blog-436024129575354145.post-57528038682889976292016-05-15T14:53:30.815-07:002016-05-15T14:53:30.815-07:00If the house is not her principal residence, she w...If the house is not her principal residence, she will pay capital gains tax on it when she disposes of it, either by selling it or by leaving it to you. The tax is paid by her estate, not by you personally. If there is not enough money in her estate to pay the tax, the house will have to be sold to cover the tax.<br /><br />LynneLynne Butler, BA LLBhttps://www.blogger.com/profile/09790353197833765108noreply@blogger.comtag:blogger.com,1999:blog-436024129575354145.post-84190815667575874372016-05-15T14:50:41.034-07:002016-05-15T14:50:41.034-07:00I would suggest that you take the title to your fa...I would suggest that you take the title to your father's house to a lawyer for clarification. Here's why. First, if he and his spouse and tenants in common, the house does NOT go to her. That only happens if they are joint tenants. Second, if she owns the house outright, she doesn't have to give you anything, no matter what your father's will says. The only way he can control the Lynne Butler, BA LLBhttps://www.blogger.com/profile/09790353197833765108noreply@blogger.comtag:blogger.com,1999:blog-436024129575354145.post-34483522563577986862016-05-15T11:22:18.803-07:002016-05-15T11:22:18.803-07:00I have a question. First I am a co-executor of my ...I have a question. First I am a co-executor of my fathers estate. When he passed away the title of his principal residence goes to his spouse as tenants in common as I understand it. In the will it states that when the property is sold 33.33% of the proceeds pass to my brother and I. As we are not on title and it is solely in my stepmothers name what are our tax implications. Either income or Anonimoushttps://www.blogger.com/profile/02764358940984300804noreply@blogger.comtag:blogger.com,1999:blog-436024129575354145.post-71032159651116361172016-03-19T16:06:48.276-07:002016-03-19T16:06:48.276-07:00Hi if my mother leaves me her non principal house ...Hi if my mother leaves me her non principal house in her will and I'm currently living in it will I have to pay any capital gains? Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-436024129575354145.post-14684697762004696092016-03-09T12:16:58.431-08:002016-03-09T12:16:58.431-08:00Hi Lynn, Excellent blog.
A few years ago my mom pu...Hi Lynn, Excellent blog.<br />A few years ago my mom put my name and my sister's name on her condo in Surrey, BC (it's fully paid off). She is in a nursing home now. We just sold the condo (still in the 3 names). Do I have to pay capital gains on my portion since my name was added to the title? Also, how do I find out when my name was added? I have been living in the condo off and on Anonymoushttps://www.blogger.com/profile/00518969137787991848noreply@blogger.comtag:blogger.com,1999:blog-436024129575354145.post-82288787034713492732016-03-03T08:51:31.165-08:002016-03-03T08:51:31.165-08:00Excellent post.
There are excellent Executors out ...Excellent post.<br />There are excellent Executors out there who are being 'stonewalled' by a Beneficiary or Beneficiaries and their Lawyer's.<br />webeyehttps://www.blogger.com/profile/10591157930288427778noreply@blogger.comtag:blogger.com,1999:blog-436024129575354145.post-45453818096395967632016-03-03T05:34:15.116-08:002016-03-03T05:34:15.116-08:00Yes, it does to some extent. That particular power...Yes, it does to some extent. That particular power you mention avoids an executor having to take fire sale prices for assets. However, it's not permission for the executor to take years to wrap up an estate if there is no good reason for it, because the executor's authority must always be balanced against the beneficiaries' right to receive their inheritance in reasonable time.<br /><Lynne Butler, BA LLBhttps://www.blogger.com/profile/09790353197833765108noreply@blogger.comtag:blogger.com,1999:blog-436024129575354145.post-67448251354665597812016-03-03T05:25:57.024-08:002016-03-03T05:25:57.024-08:00Lynne
You write "An executor is always poten...Lynne<br /><br />You write "An executor is always potentially liable for any financial loss to the estate he or she is administering."<br /><br />Is it not common practice for the will to authorize the executor to use their discretion regarding conversion or sale? <br /><br />Doesn't that "protect" the executor from liability (in the absence of criminal behaviour)?<br /><Anonymousnoreply@blogger.com