Quote:
Originally Posted by lazypucker
Is it true that there is no inheritance tax in Canada. But let's say you inherit a house from your parents, you pay 0 tax, but when you sell it later, you will get taxed for capital gain?
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Houses are a special case because of the principal residence exemption. So if you inherit it from your parents and you live there, then no, you wouldn't be taxed on that sale. If you inherit it, keep your current residence and sell your parents' home, you would get taxed, but only on the increase in value between when you got it and when you sold it. If you inherit it one day and sell it the next, there should be no tax bill.