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Level 1
Mar 13, 2023 6:51 PM UTC
Question

T3 Tax Rates Help

Hello,

 

Completing my first T3 return for a client... I wanted to confirm that the same tax brackets and treatment of capital gains apply to an estate.

 

For example.. principle residence at time of death was valued at $1.75 million, was sold 1 year later for $2 million, capital gain for the estate is then $250,000, assuming only 50% is taxable... so $125,000 taxable capital gain? Is it taxed at the same Federal/Provincial rates as individual T1 tax returns?

 

Thanks!

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1 reply

Level 2
Mar 13, 2023 6:56 PM UTC

Yes, it is taxed the same.  Be sure to use the Graduated Rate Estate type of trust when filing estate T3 returns.