The daughter is an employee and is entitled to a salary or wage. This is a deduction from rental income. If the daughter incurs expenses on behalf of the mother for the rental property, your mother can reimburse her directly for the expenses and then mom can claim them. Alternatively, the daughter can deduct them only if mom will not reimburse. In this case the T2200 must be completed.

Thanks.

Mother is the named beneficiary/executor. Father passed away last year and we’re concerned about the capital gains.
There are 2 rental properties in his name and a Joint is principle residence.
Another property is joint with mother, and has a mortgage, but was meant to be sister’s and done to avoid claims from a divorce.
There is no intention to sell the properties.

Does that mean the 2 rental properties will be taxed to father’s final return up to date of death using original purchase price as the cost base?
And mother does not need to claim tax yet? And when she does sell, the base cost would be from the value as of date of death?

For the joint resident residing as primary resident of sister…does that mean since there is already a primary resident, this property is still subject to capital gain for father’s half?

The gains distributed by the fund do not affect the gains or losses from selling the fund. In other words, the fund holds stocks and bonds and it sells them to meet redemptions or for portfolio rebalancing. The gains are distributed to the unit holders and taxable to the unit holder when received. These distributions affect the value of the units, but do not affect its adjusted cost base.

Only question- without getting into the specifics of mutual funds, she got T-slips from the funds over the years with a Taxable amount for Capital Gains (I assume as a result of the funds realization of gains through stock sales).

Would the total gains of the portfolio (at the date of death) then take into account the taxes paid over the life of the funds?

Thanks again for the great info!

J