# Canadian citizen receiving an inheritance from a foreign house



## magcsd (Oct 10, 2011)

Good Day All;

I'm a Canadian citizen and will be receiving my share of selling our family (parent) house which works to be over $100K, my 2 questions are:

1- Do I have to report that to CRA, and will I be charged taxes on this money? I could not find the info on CRA site (send me the link if you find it please).

2- What is the best (I mean secure and less fees) way to get this money to Canada, the money will be in US Fund?

I appreciate any advise


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## OhGreatGuru (May 24, 2009)

There is no tax on inheritances in Canada. However, there is capital gains tax tax if the property has increased in value since you inherited it. 

You are deemed to have inherited your share of the property at its market value at the time your parents passed away. If your net proceeds are more than this, than you have incurred a capital gain, and must declare it on Schedule 3 when you file your income tax return for 2011.

Be aware that a transfer of this size has to be reported by the receiving financial institution to FINTRAC. This is not for taxes, it is for anti-money-laundering legislation. If you advise your institution ahead of time, and provide them with a copy of the will and estate settlement papers, that will usually satisfy their requirements.

How to get it here depends on where the money is coming from. If it is in a country where banks can make electronic deposits to North American accounts, you might consider opening a US$ account at any Canadian bank, then provide the 16 digit account code to whoever is making the deposit on your behalf.


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## magcsd (Oct 10, 2011)

Thank you for the information.
I think that I have to contact CRA to find out what kind of paper work they will need from me. the value of the house did not change, but how to provie that I don't know


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## kcowan (Jul 1, 2010)

You mentioned US funds. Is the house in the US? If so, it is subject to estate taxes. If it is below their current limits, you still need to declare the income in the US and pay tax on it. Gifts and inheritances are not taxfree in the US. You can apply for an ITIN in the US before you file. Check with an accountant.

Otherwise 30% of the amount needs to be withheld. When you complete the necessary forms, then only 15% tax is withheld. This will be credited to your Canadian tax payable.


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