A client is getting money from an inherited property sale in India. Does he need to report this on the tax return for any reason? Or it will be considered an inherited property sale in Canada and not taxable or reportable.
I think timing plays a huge part in your question, you would think there wouldn’t be any capital gain if the property was inherited and sold immediately after, and claim it as personal use property so T1135 doesn’t apply, but proceeds from the disposition, the cash would be foreign property and if it’s over $100K, now T1135 comes in, and may also have to look at foreign exchange gains and losses
“Or it will be considered an inherited property sale in Canada and not taxable or reportable.”
Since the Income Tax Act requires “inherited property sale in Canada” to be both taxable and reportable, I suppose that whether the taxpayer is going to report any of his taxable transactions anywhere depends upon whether they are intending to be making any attempt whatsoever to be complying with the Income Tax Act…