Looking for some guidance to make sure Im on the right track being the executor of fathers estate.
Father passed in Feb 2023. I am the executor. Only assests were his house, which was sold shortly after passing. Also a family cottage that was in joint tenancy with survivorship rights to me and brothers.
Thinking about filing final T1 and T3 next year. My plan is to put the cottage are pre as the increase was substantial. That leaves the house as having to pay capital gains.
On the final T1 I will list the deemed disposition of the house at fmv. On T3 the only assest is the house, once real estate and lawyers fees are included this will generate a capital loss for the house on the T3 which i will list in field 1646 on the return.
So is the oder of operations:
file the final T1 then wait for it to be assesed
Then file T3 and wait for it to be assesed
Then file an amended T1 indicating that I want the 164(6) election
How do you file an amended T1? Is it as simple as remailing it to cra with a note indicating I want the election?
Although it might stir up a shit storm on the forum here, what I would do, since you know the selling price of the home and the associated costs I would dispose of the home on the final T1 at the net amount realized and therefore no loss on the T3 and a lower gain on the T1. Gets to exactly the same place in the end with a lot less screwing around. Especially and if not a lot of time has past between date of death and the sale of the home.
In the past, I have completed an amended T1 return and indicated at the top that it was for the Election under Subsection 164(6). When you complete the T3 return, there is an area near the bottom of page 1 of the schedule 1 (line 1646) to indicate that you are going to carry back the loss. You need to paper file the amended T1 Final return and include a copy of the Schedule 1 from the T3 return as well.
