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

Do I pay capital gains tax on a house I inherited in Saskatoon?

Yes, but only on any increase in value after you inherited it, not on the full sale price. Canada Revenue Agency treats an inherited property as a deemed disposition at the date of death, so your cost base resets to the home's fair market value at that point, and capital gains tax applies only to appreciation from there forward.

If the home was the deceased's principal residence and you sell it reasonably promptly, the principal residence exemption can shelter some or all of that gain. If you hold it as a rental or a vacation property instead, only half of any gain above your reset cost base is taxable, under the standard federal inclusion rate.

The estate side of this runs through a lawyer, not a real estate agent, with legal fees typically $800 to $1,500 depending on complexity. Get the fair market value at date of death documented properly, since that number is what the whole calculation rests on.

Joel Dyck provides the kind of hand-reviewed valuation that supports a defensible fair market value figure for an inherited Saskatoon home, accounting for condition and improvements an assessment alone will not catch. Get your hand-reviewed valuation from Joel Dyck.

Get your hand-reviewed valuation from Joel Dyck.

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