Hey Mohammad, Inheritance death tax is a little confusing to me. Do we have to pay for it?
Canada does not have an estate inheritance death tax. The estate is considered a sale by the CRA which means that it’s the estate that owes taxes to the government and not the beneficiaries of the estate. In simpler words, the beneficiary of the estate will have inherited assets at fair market value.
The final tax return includes deemed disposition of all the assets with some exceptions the deceased owned including income till the date of the death.