Death and taxes: What you need to know

Posted by Ravi Gulati | Posted in Financial Planning | Posted on 20-04-2014

Two rules govern taxation in the year of death. First, worldwide income earned and accrued from January 1 to the date of death is reportable on the final (terminal) T1 tax return……………

Second, a deceased taxpayer is deemed to have disposed of capital property immediately prior to death for proceeds equal to fair market value. Capital gains and losses must also be reported on the terminal T1. To determine the gain (or loss), you have to know the adjusted cost base and fair market value of each capital asset.

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