We’re sorry for your loss and we want to be of the greatest help we can in order to help you tidy up the tax affairs of your late loved one. We’re going to show you some of the things you need to be aware of, to do just that.
After your loved one has died, you have to ensure that their final and optional returns have the report of all the income from the 1st January of the year of death, to the day that they died. You must report the income earned after that date, in the estate’s return.
If there were any periodic amounts (like interest, salary, rent, etc.) earned before the date of death, they should be reported in the final return, despite the fact that your loved one may not have gotten them before death. If the accounts were not payable before death or if they weren’t ready then, the rule does not apply to them and you can report them in an optional return.
There are certain “rights” or certain “things” which are income amounts that are necessary for the deceased to receive before death, but were not yet paid to them. They many include the following:
Accumulated unpaid bond interest
Employment income (like salaries, commissions, vacation pay) owing by the employer
OAS, EI and CPP benefits which were not yet received for a period ended before the date of death or for the month of death
RRSP or RRIF payments and Pension plan payments for the month of death that had not been received at the date of death
Retroactive payment of a disability annuity or EI benefit paid after the date of death, but to which the deceased was entitled prior to that date
Work-in-progress (which is attainable if the deceased carried on a business and had elected to exclude work-in-progress when calculating income)
If you are looking for a professional accountant to do your taxes in Canada, then you have come to the right place as we are tax experts in Kingston Ontario and we can help process your income tax return quickly while maximizing the tax return you will receive. Our decades of income tax filing experience can help you with your personal and business taxes in Kingston. Remove the headache from taxes and let our skilled tax consultants handle your accounting and bookkeeping to process smooth tax returns for you. Precise, Accurate Instant Tax Refunds Since 2002.
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