If a property is inherited and the inheritor has a...

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
EnglishEN

Pick a language

Français English
Announcements
For information related to Covid-19 and how to get help if you lost your job, please see The Covid-19 Tax Info Center
cancel
Showing results for 
Search instead for 
Did you mean: 
Highlighted
New Member

If a property is inherited and the inheritor has and still intends to live in said property, does the capital gains tax still apply?

The property has been the inheritors principal residence for many years.

1 Reply
Highlighted
New Member

If a property is inherited and the inheritor has and still intends to live in said property, does the capital gains tax still apply?

Capital Gains taxes apply to all properties subject to the owners ability to qualify for the Principal Residence Designation. The inherited property will be transferred to the beneficiary at an Adjusted Cost Base (often the fair market value on the date of death) for the purposes of determining future Capital Gains.  The ACB should be determined by the Estate and reported on the final return or optional tax return of the deceased.