SOURCE: Mew & Company

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February 27, 2017 13:15 ET

Vancouver Chartered Professional Accountants Caution Taxpayers on Inheritance

Chartered professional accountants point out that gifts come with obligations

VANCOUVER, BC--(Marketwired - February 27, 2017) - The chartered professional accounts at Mew + Company have some advice for anyone receiving an inheritance. With great gifts come great obligations. In this case, while inheritances are non-taxable for Canadian taxpayers, any offshore assets and certain foreign assets may still need to be reported to the Canadian Revenue Agency (CRA). For more, go to: http://www.mewco.ca/blog/inheritance-canadian-tax-vancouver-accountants/

Inheritances are non-taxable regardless of the source (Canadian or foreign), or the form (a summer house, a rental building, shares of a company, or cold hard cash), but a completed T1135 Foreign Income Verification Statement may be required in specific cases.

The T1135 Foreign Income Verification Statement is an information return that Canadians are required to file when they own specified foreign property with a cost base of more than $100,000 Canadian dollars. The form must be submitted, along with personal tax returns, for the tax year the inheritance was received. For example, if a taxpayer's grandparents left them $1,000,000 worth of US cash in a US bank account, the Canadian beneficiary may be required to file a T1135, depending on how and when they took over legal ownership of the funds.

The general rule is that even if an inheritance is non-taxable, all the interest or revenue generated from it is, even outside of Canada. To learn more about Trust and Estate Planning in Vancouver, contact the Vancouver Chartered Professional Accountants at Mew + Company.

About the Company

Mew + Company, Vancouver, is an ideal solution to the taxation problem. With a 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 + Company and discuss their services, log on to http://mewco.ca/.

Contact Information

  • Lilly Woo, CPA, CA, CFE, CFP
    Mew + Company Chartered Professional Accountants
    604 688 9198
    Company Website: http://www.mewco.ca