Joel DyckReal Broker SK Ltd.
Saskatoon · From the topic map

Do I have to pay capital gains tax on an inherited home?

It depends on who and when. The Income Tax Act treats the deceased as having sold the home at death, so the estate, not you, is responsible for any gain up to that point, often sheltered anyway by the principal residence exemption; you owe capital gains tax only if the home grows in value before you sell.

In Saskatchewan, the executor cannot act on the property until the Court of King's Bench grants Letters Probate and Information Services Corporation transmits title, so there is often a real gap, weeks to months, between the date-of-death value and the date the home is actually marketed and sold.

If you keep the inherited home as a rental instead of selling right away, that changes the answer: probate fees, charged per $1,000 of estate value, already applied at death, and the gain from the date of death forward becomes fully taxable once it is no longer anyone's principal residence.

Whether you sell quickly or hold on, the number that protects you is the home's real value on the date you inherited it. Get your hand-reviewed valuation from Joel Dyck.

Get your hand-reviewed valuation from Joel Dyck.

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