Question: My mother died Jan 07, and left her house/estate to me in her will. My name was added to the house deed just before her death in Oct 06. This was her primary residence, but not mine. House was sold to 3rd party 13 months after her death Mar 08. Value of the property at time of death & at sale of house & in Oct 06 did not change (according to real estate agent) . How do I report this property on income tax. Is it on her estate income tax or mine?
Given that the house value did not change between the death and sale, there should not be any capital gains. I have searched the net for any guidance on this, can you help me. Probate was not necessary as all documents were in my name as well as hers.
Technically your mother would have been deemed to have sold 50% of her home to you in Oct and you would have acquired 50% of the home at that time.
Given the above you may have a capital loss or gain from October until sale and your mom’s estate would have a taxable gain or loss from death until sale.
Now the property should have been valued at the time of transfer to joint ownership, death, and subsequent sale to determine the gains or losses. The CRA may look at comparable property in the area to assess value.
If the intent was to transfer to joint ownership for convenience then there is no capital gain or loss to either you your mom or her estate. But probate should have been paid.
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Dear Tax Guy,
My mother passed away in Ontario, July 21/09, leaving me, her only child all her property consisting of 90 acres and a large home. My wife and I have lived in that home, in order to care for her, for approximately the last 10 years. We have no other principal residence as we sold it in order to live with and care for her. Are we entitled to any tax exemptions because this is currently our principal residence.
Thankyou……..Bill
@ Bill:
If the home was your mom’s principal residence before her death and the home was left to you and you ordinarily occupy it, then it is your principal residence.
In this case it appears there are no tax consequences.