Inherited property overseas - proceeds of sale

[pgc]

Hi there,

I inherited property from my grandfather which was bequeathed to my mother, sister and me (and aunts) upon his death. The property is currently registered in the name of my mother in india.

We plan to sell this property sometime this year.

My question is - if the capital gains taxes are paid in India, would the net proceeds that are shared with me be taxable in Canada? I am a PR, and my sister is a Canadian citizen.

 

[steaky]

Assume your mother is not a tax resident of Canada, the proceeds would only be taxable in India.

 

[indiabusinesspr]

to sell property in india your mother will receive payment hence income is her and she will pay capital gain in india ... it must be long term(@20%) tax after giving indexation benefit. and the proceed is gifted to you by your mother. hence it is gift which is not taxable in canada.
If before selling part of property get transferred in your name (after will probation ) or after relinquishment deed .. as the case may be than it might be taxed in canada. (50% of capital gain) if the sale happen later than transfer (at least an year) but you will get the benefit of tax paid in india . In either case i believe you won't be taxed but you need to declare this income in your federal form.

 

[prashant1965]

Hello. I am a Canadian citizen living in US. I am trying to transfer money (proceeds from selling an inherited property) from India to Canada, I have paid the long term capital gains and filed the tax return in India. Do I owe any taxes in Canada (or just declare in the return)? Any information on this would be sincerely appreciated. Thank you for the assistance.