Information about income taxes for Ontario estates
We help prepare and file income tax returns for Ontario estates.
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The important deadlines for filing tax returns for Ontario estates and for paying the taxes due
8 steps for estate income taxes
Step 1: Get recognized by CRA as the legal representative of the deceased for income tax
Step 2: Appoint a tax professional to be your authorized representative with CRA
Step 3: Gather information about income and assets on death, last filings, and possible claims for medical expenses, disability tax credits, etc.
Step 4: Prepare and file all necessary income tax returns for the deceased, surviving spouse, and estate with CRA
Step 5: Pay all taxes. Receive and review Notices of Assessment. If required object to CRA's assessment of the taxes due
Step 6: Determine a proper holdback. Provide accounts, get releases, make an interim distribution if possible. Deal with non-resident beneficiary issues.
Step 7: Determine if compensation will be paid and how much. Prepare and file all tax filings required for both the estate and the trustee
Step 8: Apply to CRA for all clearance certificates. On receipt, pay trustee compensation and make the final distribution.
Specific income tax issues for Ontario estates
The tax issues when the deceased owned a house, as sole owner or with their spouse
A simple and clear summary of key issues in income tax for Ontario estates
Receive fair compensation for being the trustee. We help with calculation, taxes, payment, communication with beneficiaries
Trustee compensation is taxable income requiring action by both the estate and the trustee personally for proper CRA filings and payments
Full, accurate accounts for the estate are required, both for beneficiaries and CRA. Proper accounts should be provided before releases are signed
A clearance certificate from CRA is key to finalizing an estate. You are not done without certificates that cover up to final distribution
EAT: Estate Administration Tax
EAT (Ontario probate tax) is not income tax
Estate administration tax: we help calculate and pay, including adjustments, re-filings and refunds
The Estate Information Return must be filed 180 days after probate. We can help.
EAT is an Ontario tax, payable to estate assets. It is very different from income tax.
