I have recently been retained by a client to complete a final T3 return for an individual who died in Oct 2018. They completed the 2018 T1 return themselves on a tax program.
On doing my complimentary review of the filed returns, I noted a couple of errors, one of which is the non-declaration of the principal residence owned at the time of death. Deemed disposition would be at FMV since the residence gets inherited by the son.
Has anyone had any experience with late filed designations of this nature and any potential penalty waivers? I am just waiting on the phone with CRA.
I was planning on filing a T1ADJ manually with a letter outlining the situation, and wait and see if a penalty gets assessed.
Thanks in advance for any wisdom.