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New Member

I inherited my father's primary residence in 2014 and sold it for less than the value listed in probate. How do I record the acquisition? Can I claim the capital loss?

 
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New Member

I inherited my father's primary residence in 2014 and sold it for less than the value listed in probate. How do I record the acquisition? Can I claim the capital loss?

The acquisition itself wouldn't have tax implications. The final taxes of your fathers estate should have dealt with the tax implications of the property. 

I'm not very familiar with the probate process but I assume that it involves an updating of the values of the assets. If that's the case then you certainly can claim the capital loss on the property since it depreciated from when you inherited it til when you sold it. I would use a bit of judgement here as well. Does it pass the sniff test? If you sold the property a week after acquisition and claim a substantial loss, then the initial value is probably not very accurate. If the loss that you would be claiming is somewhat in the realm of realistic for the length of time you owned it, then it should be alright should the CRA come asking about it.

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New Member

I inherited my father's primary residence in 2014 and sold it for less than the value listed in probate. How do I record the acquisition? Can I claim the capital loss?

The acquisition itself wouldn't have tax implications. The final taxes of your fathers estate should have dealt with the tax implications of the property. 

I'm not very familiar with the probate process but I assume that it involves an updating of the values of the assets. If that's the case then you certainly can claim the capital loss on the property since it depreciated from when you inherited it til when you sold it. I would use a bit of judgement here as well. Does it pass the sniff test? If you sold the property a week after acquisition and claim a substantial loss, then the initial value is probably not very accurate. If the loss that you would be claiming is somewhat in the realm of realistic for the length of time you owned it, then it should be alright should the CRA come asking about it.

View solution in original post

New Member

I inherited my father's primary residence in 2014 and sold it for less than the value listed in probate. How do I record the acquisition? Can I claim the capital loss?

Thank you Warren.