SOURCE: Mew & Company

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December 02, 2015 14:50 ET

Vancouver Accountants Mew & Company Caution Canadian Taxpayers About Obligations of Inheritance

Vancouver Accountants at Mew and Company Publish Article to Help Canadians Understand How Inheritances Are Handled by Revenue Canada

VANCOUVER, BC--(Marketwired - December 02, 2015) - Mew and Company, a team of Vancouver-based accountants, understand the subject of inheritance can be confusing when it comes to taxation. To help Canadians understand their duties when reporting to the Canada Revenue Agency ("CRA"), the company has published a helpful blog on their company website. For more information, go to: http://www.mewco.ca/tax/blog/inheritance-canadian-tax-vancouver-accountants/

The article points out that inheritances are non-taxable for Canadian taxpayers, regardless of whether the inheritance comes from a Canadian or a foreign resident, It doesn't matter if the inheritance is cash, property, or company shares. However, this doesn't mean there are no information reporting obligations to the CRA.

If your inheritance is coming from a foreign source, a completed T1135 Foreign Income Verification Statement may be required with the personal tax return for the tax year the inheritance was received.

The T1135 Foreign Income Verification Statement is something Canadians are required to file when they own foreign assets that cost more than $100,000 dollars Canadian. For example, if a taxpayer's grandparents left them $1,000,000 worth of US currency, the beneficiary may be required to file a T1135, depending on how and when they took legal ownership of the funds.

Furthermore, the blog specifies that while the inherited assets are not taxable, there will be taxes if assets are sold. This happens whether or not the assets are immovable and located outside of Canada or publicly traded shares transferred into a Canadian account.

Another important reminder is that any interest or dividends received during the period of ownership must be included on the beneficiary's tax return, even if the investment income was earned outside of Canada.

The general rule is while inheritance is not taxable, any revenue generated from inherited property is. To learn what taxes may be owed and how you can minimize the expense generated from inherited assets, it is advisable to consult an accounting professional.

About the Company

Mew and Company, Vancouver, is an ideal solution to the taxation problem. With their simple philosophy of building long-lasting customer relationships, the company has been serving corporate clients in a variety of fields-including restaurants, real estate, retail and the service industry. Investing in their specialist services will undoubtedly be fruitful for all kinds of clients.

To learn more about Mew and Company and discuss their accounting services, log on to http://mewco.ca/

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