Quote:
Originally Posted by fliptuner
Ideally, one would defer their taxes and shortly before they die, sell the property to their main beneficiary (they'd have to pay the lien first, obviously), to avoid getting raped on inheritance tax.
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what inheritance tax?
when one dies, their estate is taxed (all unrealized capital gains/losses are realized and taxed). the principal residence will be tax free, as we all know.
unless you are speaking about some special tax on the deferred property tax portion, otherwise i have no idea what you're talking about.
Canada actually has one of the best tax systems for when you die. it is incredibly fair, full tax deferral (tax base carries over) when a spouse passes away, full taxation when you leave assets to non-surviving spouse.
the only time you want to do what you are suggesting is if you have a lot of pregnant taxable gains but low income in your remaining years, so you want to realize the capital gains at lower marginal rates (realize the gains little by little each year)... but even then, we really don't know when we will die, and i'd concentrate on living first.