February 2, 2009
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.
Filed under Estates & Wills