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Foreign Inheritance - ACB

Mswalleye

Newbie
Jul 17, 2019
3
0
US Expat living in Canada nherited $$ from USA, it was put in a bank account in the USA. When this money is ether spent or moved to Canada what do I use as the initial value .. adjusted cost base. Is it the value in Canadian .. when I received the funds ....or the value at time of death? thanks
 

canuck_in_uk

VIP Member
May 4, 2012
31,558
7,195
Visa Office......
London
App. Filed.......
06/12
US Expat living in Canada nherited $$ from USA, it was put in a bank account in the USA. When this money is ether spent or moved to Canada what do I use as the initial value .. adjusted cost base. Is it the value in Canadian .. when I received the funds ....or the value at time of death? thanks
There is no inheritance tax in Canada and no need for an ACB.
 

Mswalleye

Newbie
Jul 17, 2019
3
0
I understand that there is no inheritance tax but having left the money in my account in the usa, when I either spend that money or transfer it to Canada it will incur a gain or loss. I need to know the value of the funds in Canadian so that when the money is either spent or transferred to Canada I know what this gain or loss is. I am thinking the exchange I would use for the cash would be when I received it? I also was beneficiary of an annuity and am thinking the value of that would be at the time of death? ... not certain though.
 

mad_hatter

Hero Member
Jul 16, 2016
362
65
You use the exchange rate on the date you received the fund as the ACB. You do not incur a capital gain or loss if you transfer the fund to Canada in US dollars, you only incur a gain or loss when you convert the fund into Canadian dollars.