Capital Gains Tax Guidance

Summary

In Ontario, inheriting a home does not immediately incur capital gains tax. However, if the property is sold, tax may apply based on its value increase since inheritance. If the home was the deceaseds principal residence, it might be exempt from capital gains tax. When a child moves in and the home becomes their principal residence, they may qualify for an exemption when selling. Capital gains are calculated by subtracting the homes value at inheritance from its sale price and must be reported on the annual tax return. Consider consulting a tax professional for personalized advice.

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inheringting a house
To help with your question about inheriting a house, could you please clarify what specific information or assistance you need regarding the inheritance process? For example, are you looking for details on the legal process, taxes, or responsibilities involved?
gains tax on inherited home
In Ontario, when you inherit a home, you generally don't pay capital gains tax at the time of inheritance. However, if you decide to sell the property, capital gains tax may apply based on the increase in value since the date of inheritance.
- If the property was the deceased's principal residence, it might be exempt from capital gains tax.
- Capital gains are calculated by subtracting the home's value at inheritance from its sale price.
- You report capital gains on your annual tax return.
Would you like more information on calculating capital gains or exemptions?
what if child moves in
If a child moves into the inherited home and it becomes their principal residence, they may be exempt from capital gains tax when they eventually sell it. To qualify, the home must remain their principal residence throughout the ownership period. Would you like more information on principal residence exemptions?