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How to calculate the adjusted cost base of inherited property
– moneysense.ca
I sold a building that I inherited over 20 years ago. I don’t know the adjusted cost base (ACB) or fair market value of the building in 2003. How do I determine the value?—Bill
Reporting the sale of a property in Canada
When you sell real estate, you need to report that sale on your tax return, even if there’s no tax payable. Since 2016, this reporting requirement has also applied to a tax-free sale of a property that qualifies for the principal residence exemption.
When you inherit real estate, any accumulated tax, if applicable, is generally paid by the estate of the deceased. This is because when a taxpayer dies, they are deemed to have sold their assets on their date of death, and any tax payable is calculated on their final tax return.
Property inherited from a spouse or common-law partner
One exception is for real estate left to a surviving spouse or common-law partner. If you inherited this building from your spouse or common-law partner, Bill, it may not be the property’s 2003 value that you need to determine…
