I would appreciate your help with the scenario below:
Mother died April 2019. Before her death she added her 6 children name to the deed of the vacant property, resulting in her owning 1/7 of the property. It is my understanding the children has filed Mother final tax return and obtain the clearance certificate. However, the vacant property was not disclosed on the Tl neither the list of asset to obtain the clearance. Minimal income was reported on Mother T1.
Mother has an estate account. Now the children wants to sell the property and would like to know how much the estate will be taxed on Mother 1/7 of the capital gain. The property is value $45K , ACB $5,000.
Should the final T1 be amended to include the disposal of the property to the children, since the gift is taxable. The clearance certificate was issued, is it possible to amend the T1? Will the estate pay taxes on Mother portion of the capital gain.