Canada does not tax beneficiaries on the money as an inheritance. There is no inheritance tax in Canada. However any income subsequently derived from those monies such as from investments can be taxed as it is income. The tax withheld in the US may or may not be claimed back based on the US/Canada tax treaty and possible filing of US tax return but that is a complex issue best left for US tax professionals. Hope that helps.
Tax treaties between the US & Canada exist that are meant to prevent double taxation. But there are certain cases when income from the US can be taxed in Canada. We would recommend that you consult with someone knowledgeable in cross-border taxation to see how this income will impact your taxes. You can also ask the Canada Revenue Agency (CRA). If you are in Canada or the United States, you can call the CRA at 1-800-959-8281. If you are elsewhere, you can call 613-940-8495. This page has more ways to contact the CRA: Contact the Canada Revenue Agency
Thank you for choosing TurboTax.
Thank You,
Sending people to other tax expert or the CRA to search for answer is not useful.
Canada does not tax beneficiaries on the money as an inheritance. There is no inheritance tax in Canada. However any income subsequently derived from those monies such as from investments can be taxed as it is income. The tax withheld in the US may or may not be claimed back based on the US/Canada tax treaty and possible filing of US tax return but that is a complex issue best left for US tax professionals. Hope that helps.