My mother passed away last week, I have sent a request for the book value and market value of the stock certificates,hopefully to the correct transfer agents addresses-some of this was confusing and will need advices re what to do next and the income tax for her small estate. We had joint accounts so that part is not an issue, and she had no other property.
---------------------------------------------------------
david ingram
replies:
After compiling all of the information, there
is not an awful lot that you can do today about your mnother's final tax
return.
1. You should get the application
in for the CPP death benefit if Mom was receiving Canada Pension
Plan.
2. If she was receiving CPP and
the OAS, you should notify the Payers of her date of death.
3. If she was receiving any other
pensions, you should notify those payers as well.
----------------------------
Then, you have to be aware that eveything that your
mother owned on the date of death is considered to have been sold and reacquired
on that date.
So, if your mother had a stock she paid $1,000 for
and it was worth $1,300 on her date of death, her final 2007 tax return will
have to account for that $300 profit as a capital gain.
Conversely, if she paid $2,000 for a stock and it
was worth $1,500 on her date of death, her final return will have to account for
the $500.00 loss.
If she owned a RRIF or RRSP at the date of death,
the entire amount will go on the final return as taxable income
----------------------------------
Her final return (dur April 30, 2008) will then
include:
* Any interest paid to her up to
the date of death
* Any dividends paid to her up to
the date of death
* Any capital gains or capital
losses incurred up to the date of death (if she sold anything
herslf)
* Any capital gains or losses
created by the deemed sales of the stock (or a second property as an
example)
* any pensions paid to her until
the date of death.
-------------------------------
If she had bond interest, dividends or rents that
were due to her but not paid at the date of death, it is also possible to
prepare a second return to report these "rights and things".
-------------------------------------------------------
The good part is that with everything in joint
tenancy, there will be no need to probate a will or file an estate tax
return,
-------------------------
But, because of this, the CPP death benefit (if there is one) will be taxable on your return
In the meantime, getting the value of the shares on
her datre of death is exaclty what you should have done. The
purchase price is also important and that may be different than the book value
at the broker she was dealing with if she moved her account after
purchasing the shares.
please use [email protected] - this is a personal list
used mainly for jokes and not connected to my tax database which means that i
can't access what I generally use to answer or reply to tax
questions.
If you have any questions, my contact numbers are
below.
If you need to phone, 10 AM to 9 PM 7 days a week
(Vancouver time) is generally okay. There are no answering machines
-- if there is no answer, you will have to call back.
If you do happen to leave a number because someone
else answers and I have not called bak within 4 hours, the message is lost in
space and you have to call back again.
If i do not respond to an email within 24 hours, it
is also lost in antiquity and should be resent with your name and paying
customer in the subject as above,
The above may seem a little silly but with the
number of phone calls (30 to 50 a day is not unusual and my record recorded
number was 142 on April 30th 2005) and emails I get, I have clients in every
time zone and it is the only way I can handle them as explained
next.
---------------------------------------------------------------------------------------------------------------
It is very unlikely that blind or unexpected email to me will
be answered. I receive anywhere from 100 to 700 unsolicited emails a
day and usually answer anywhere from 2 to 20 if they are not from existing
clients. Existing clients are advised to put their 'name and PAYING
CUSTOMER' in the subject and get answered first. I also refuse to be a
slave to email and do not look at it every day and have never ever looked at it
when i am out of town.
If an email is not answered in 24 to 36 hours, it is lost in space. You will have to phone to make an appointment. Gillian Bryan generally accepts appointment requests for me between 10:30 AM and 4:00 PM Monday to Friday VANCOUVER (Seattle, Portland, Los Angeles) time at (604) 980-0321
David Ingram's US / Canada Services
US / Canada / Mexico tax, Immigration and working Visa Specialists
US / Canada Real Estate Specialists
My Home office is at:
If an email is not answered in 24 to 36 hours, it is lost in space. You will have to phone to make an appointment. Gillian Bryan generally accepts appointment requests for me between 10:30 AM and 4:00 PM Monday to Friday VANCOUVER (Seattle, Portland, Los Angeles) time at (604) 980-0321
David Ingram's US / Canada Services
US / Canada / Mexico tax, Immigration and working Visa Specialists
US / Canada Real Estate Specialists
My Home office is at:
4466 Prospect Road
North Vancouver, BC, CANADA, V7N 3L7
Cell (604) 657-8451 -
(604) 980-0321 Fax (604) 980-0325
North Vancouver, BC, CANADA, V7N 3L7
Cell (604) 657-8451 -
(604) 980-0321 Fax (604) 980-0325
Calls welcomed from 10 AM to 9 PM 7 days a week Vancouver (LA) time - (please do not fax or phone outside of those hours as this is a home office)
Disclaimer: This question has been answered without detailed
information or consultation and is to be regarded only as general
comment. Nothing in this message is or should be construed as advice
in any particular circumstances. No contract exists between the reader and the
author and any and all non-contractual duties are expressly denied. All
readers should obtain formal advice from a competent and
appropriately qualified legal practitioner or tax specialist
for expert help, assistance, preparation,
or consultation in connection with personal or
business affairs such as at www.centa.com. If you forward this message,
this disclaimer must be included."
David Ingram gives expert income
tax & immigration help to non-resident Americans & Canadians from
New York to California to Mexico family,
estate, income trust trusts Cross border, dual citizen - out of
country investments are all handled with competence &
authority.
Phone consultations are $400 for 15 minutes to 50
minutes (professional hour). Please note that GST is added if product remains in
Canada or a phone consultation is in Canada.
This is not intended to be definitive but in
general I am quoting $800 to $2,800 for a dual country tax return.
$800 would be one T4 slip one W2 slip one or two
interest slips and you lived in one country only - no self employment or rentals
or capital gains - you did not move into or out of the country in this
year.
$1,000 would be the same with one rental
$1,200 would be the same with one business no
rental
$1,200 would be the minimum with a move in or out
of the country. These are complicated because of the back and forth foreign tax
credits. - The IRS says a foreign tax credit takes 1 hour and 53
minutes.
$1,500 would be the minimum with a rental or two in
the country you do not live in or a rental and a business and foreign tax
credits no move in or out
$1,600 would be for two people with income from two countries
$2,800 would be all of the above and you moved in
and out of the country.
This is just a guideline for US / Canadian
returns
We will still prepare Canadian only (lives in
Canada, no US connection period) with two or three slips and no capital
gains, etc. for $150.00 up.
With a Rental for $350
A Business for $350 - Rental and business likely
$450
And an American only (lives in the US with no
Canadian income or filing period) with about the same things in the same range
with a little bit more if there is a state return.
Moving in or out of the country or part year
earnings in the US will ALWAYS be $800 and up.
TDF 90-22.1 forms are $50 for the first and $25.00
each after that when part of a tax return.
8891 forms are generally $50.00 to $100.00
each.
18 RRSPs would be $900.00 - (maybe amalgamate a
couple)
Capital gains *sales) are likely $50.00 for
the first and $20.00 each after that.
Just a guideline not etched in
stone.
This from "ask an income trusts tax and immigration expert"
from www.centa.com or www.jurock.com or www.featureweb.com. David Ingram deals on a daily
basis with expatriate tax returns with multi jurisdictional cross and
trans border expatriate problems for the United States, Canada, Mexico,
Great Britain, United Kingdom, Kuwait, Dubai, Saudi Arabia, Thailand,
Indonesia, Japan, China, New Zealand, France, Germany, Spain, Italy, Russia,
Georgia, Brazil, Peru, Ecuador, Bolivia, Scotland, Ireland, Hawaii, Florida,
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Grenada,, Virgin Islands, US, UK, GB, and any of the 43 states with state tax
returns, etc. Rockwall, Dallas, San Antonio Houston, Denmark, Finland,
Sweden Norway Bulgaria Croatia Income Tax and Immigration Tips, Income Tax
Immigration Wizard Antarctica
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FINTRAC E677 E667 105 106 TDF-90 Reporting $10,000 cross border
transactions Grand Cayman Aruba Zimbabwe South Africa Namibia help USA US Income
Tax Convention
David Ingram expert income tax help and preparation of US Canada Mexico non-resident and cross border returns with rental dividend wages self-employed and royalty foreign tax credits family estate trust trusts income tax convention treaty
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