Upon death, a taxpayer is deemed under paragraph 70(5)(a) of the Income Tax Act to have disposed of all property for proceeds equal to their fair market value at the time of death. Any resulting capital gain must be reported in the taxpayer’s income tax return for the year of death (terminal return). Included in income at death is the net capital gain recognized under the deemed disposition rules.The deemed disposition rules treat capital property owned by the deceased as … Continue reading What happens to your assets when you pass away?