how or if to declare inheritance of soleshareholder corporation on trust return
I found your website while searching for the Estate Law on corporation sadly I didn't find
the answer I was looking for. My niece is the Executrix of her mom's will and only
beneficiary with her 5 years old daughter. I have been doing all the work for her, I am
now at the T3 Trust Income Tax return and uncertain how to deal with the corporation.
To start the estate wasn't worth much, my sister's principal residence had a mortgage of
almost the full fair market value and by the time we sold it with all disbursements I had to
advance the estate over $1,000 to pay all fees.
The corporation was first started in 2000 by my sister's late husband, at the time, he was
the sole shareholder, after his death in 2004 my sister retained all his shares, which now
our passed on to her daughter. However, the corporation has been operating in the red for
years, inactive since my sister's death, we just sold the only building under the corp.'s
name at a capital loss. It took 14 months to sell, therefore, we had financed all expenses
such as property tax, insurance, utilities, plus settled a loan against the corporation. After
repaying all of the advances & expenses there is no money left from the sell, but the
corporation had $10,000 in GIC which just matured, this to say it's the only thing left
along with $15,000 remaining in unused CCA.
My question is how do or do I declare anything about the corporation of the T3 since the
corp. is an entity on it's own and I did all income tax returns from 2005 to 2008 since my
sister was behind when she died in 2008? The only taxable amount is her CPP death
benefit for $992.76, unless the $10,000 GIC requires to pay tax on, and on the T3 they do
asked for a list of assets at death.
I would truly appreciate any guidance or referals to another website, thank you!
Dianne
