Mother has just passed away - what next? -

My mother passed away last week,  I have sent a request for the book value and market value of the stock certificates,hopefully to the correct transfer agents addresses-some of this was confusing and will need advices re what to do next and the income tax for her small estate.  We had joint accounts so that part is not an issue, and she had no other property.

david ingram replies:
After compiling all of the information, there is not an awful lot that you can do today about your mnother's final tax return.
1.    You should get the application in for the CPP death benefit if Mom was receiving Canada Pension Plan.
2.    If she was receiving CPP and the OAS, you should notify the Payers of her date of death.
3.    If she was receiving any other pensions, you should notify those payers as well.
Then, you have to be aware that eveything that your mother owned on the date of death is considered to have been sold and reacquired on that date.
So, if your mother had a stock she paid $1,000 for and it was worth $1,300 on her date of death, her final 2007 tax return will have to account for that $300 profit as a capital gain.
Conversely, if she paid $2,000 for a stock and it was worth $1,500 on her date of death, her final return will have to account for the $500.00 loss.
If she owned a RRIF or RRSP at the date of death, the entire amount will go on the final return as taxable income
Her final return (dur April 30, 2008) will then include:
*    Any interest paid to her up to the date of death
*    Any dividends paid to her up to the date of death
*    Any capital gains or capital losses incurred up to the date of death (if she sold anything herslf)
*    Any capital gains or losses created by the deemed sales of the stock (or a second property as an example)
*    any pensions paid to her until the date of death.
If she had bond interest, dividends or rents that were due to her but not paid at the date of death, it is also possible to prepare a second return to report these "rights and things".
The good part is that with everything in joint tenancy, there will be no need to probate a will or file an estate tax return,
But, because of this,  the CPP death benefit (if there is one) will be taxable on your return
In the meantime, getting the value of the shares on her datre of death is exaclty what you should have done.  The  purchase price is also important and that may be different than the book value at the broker she was dealing with if she moved her account after purchasing the shares. 
please use - this is a personal list used mainly for jokes and not connected to my tax database which means that i can't access what I generally use to answer or reply to tax questions.
If you have any questions, my contact numbers are below.
If you need to phone, 10 AM to 9 PM 7 days a week (Vancouver time) is generally okay.  There are no answering machines --  if there is no answer, you will have to call back.
If you do happen to leave a number because someone else answers and I have not called bak within 4 hours, the message is lost in space and you have to call back again.
If i do not respond to an email within 24 hours, it is also lost in antiquity and should be resent with your name and paying customer in the subject as above,
The above may seem a little silly but with the number of phone calls (30 to 50 a day is not unusual and my record recorded number was 142 on April 30th 2005) and emails I get, I have clients in every time zone and it is the only way I can handle them as explained next.
It is very unlikely that blind or unexpected email to me will be answered.  I receive anywhere from 100 to 700  unsolicited emails a day and usually answer anywhere from 2 to 20 if they are not from existing clients.  Existing clients are advised to put their 'name and PAYING CUSTOMER' in the subject and get answered first.  I also refuse to be a slave to email and do not look at it every day and have never ever looked at it when i am out of town. 

If an email is not answered in 24 to 36 hours, it is lost in space.  You will have to phone to make an appointment.  Gillian Bryan generally accepts appointment requests for me between 10:30 AM and 4:00 PM Monday to Friday VANCOUVER (Seattle, Portland, Los Angeles) time at (604) 980-0321

David Ingram's US / Canada Services
US / Canada / Mexico tax, Immigration and working Visa Specialists
US / Canada Real Estate Specialists
My Home office is at:
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Calls welcomed from 10 AM to 9 PM 7 days a week  Vancouver (LA) time -  (please do not fax or phone outside of those hours as this is a home office)
Disclaimer:  This question has been answered without detailed information or consultation and is to be regarded only as general comment.   Nothing in this message is or should be construed as advice in any particular circumstances. No contract exists between the reader and the author and any and all non-contractual duties are expressly denied. All readers should obtain formal advice from a competent and appropriately qualified legal practitioner or tax specialist for expert help, assistance, preparation, or consultation  in connection with personal or business affairs such as at If you forward this message, this disclaimer must be included."
David Ingram gives expert income tax & immigration help to non-resident Americans & Canadians from New York to California to Mexico  family, estate, income trust trusts Cross border, dual citizen - out of country investments are all handled with competence & authority.
Phone consultations are $400 for 15 minutes to 50 minutes (professional hour). Please note that GST is added if product remains in Canada or a phone consultation is in Canada.
This is not intended to be definitive but in general I am quoting $800 to $2,800 for a dual country tax return.
$800 would be one T4 slip one W2 slip one or two interest slips and you lived in one country only - no self employment or rentals or capital gains - you did not move into or out of the country in this year.
$1,000 would be the same with one rental
$1,200 would be the same with one business no rental
$1,200 would be the minimum with a move in or out of the country. These are complicated because of the back and forth foreign tax credits. - The IRS says a foreign tax credit takes 1 hour and 53 minutes.
$1,500 would be the minimum with a rental or two in the country you do not live in or a rental and a business and foreign tax credits  no move in or out

$1,600 would be for two people with income from two countries

$2,800 would be all of the above and you moved in and out of the country.
This is just a guideline for US / Canadian returns
We will still prepare Canadian only (lives in Canada, no US connection period) with two or three slips and no capital gains, etc. for $150.00 up.
With a Rental for $350
A Business for $350 - Rental and business likely $450
And an American only (lives in the US with no Canadian income or filing period) with about the same things in the same range with a little bit more if there is a state return.
Moving in or out of the country or part year earnings in the US will ALWAYS be $800 and up.
TDF 90-22.1 forms are $50 for the first and $25.00 each after that when part of a tax return.
8891 forms are generally $50.00 to $100.00 each.
18 RRSPs would be $900.00 - (maybe amalgamate a couple)
Capital gains *sales)  are likely $50.00 for the first and $20.00 each after that.
Just a guideline not etched in stone. 
This from "ask an income trusts tax and immigration expert" from or or David Ingram deals on a daily basis with expatriate tax returns with multi jurisdictional cross and trans border expatriate problems  for the United States, Canada, Mexico, Great Britain, United Kingdom, Kuwait, Dubai, Saudi Arabia, Thailand, Indonesia, Japan, China, New Zealand, France, Germany, Spain, Italy, Russia, Georgia, Brazil, Peru, Ecuador, Bolivia, Scotland, Ireland, Hawaii, Florida, Montana, Morocco, Israel, Iraq, Iran, India, Pakistan, Afghanistan, Mali, Bangkok, Greenland, Iceland, Cuba, Bahamas, Bermuda, Barbados, St Vincent, Grenada,, Virgin Islands, US, UK, GB, and any of the 43 states with state tax returns, etc. Rockwall, Dallas, San Antonio Houston, Denmark, Finland, Sweden Norway Bulgaria Croatia Income Tax and Immigration Tips, Income Tax  Immigration Wizard Antarctica Rwanda Guru  Consultant Specialist Section 216(4) 216(1) NR6 NR-6 NR 6 Non-Resident Real Estate tax specialist expert preparer expatriate anti money laundering money seasoning FINTRAC E677 E667 105 106 TDF-90 Reporting $10,000 cross border transactions Grand Cayman Aruba Zimbabwe South Africa Namibia help USA US Income Tax Convention

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