Tax returns of a deceased individual

Question 1

Tax returns of a deceased individual

Answer 1

A representative of the deceased individual will need to file a final (terminal year) tax return for the taxation year starting January 1, and ending at the date of death.
* The terminal return includes all amounts realized up to the date of death on which the deceased would have paid tax had he or she lived.
* When a person dies, they are deemed to have disposed of all of their assets at the time of death.
* Filing deadline for the final tax return is the later of the normal filing date (April 30
of the following year), or six months after the date of death.
An election may be made to file a separate tax return for certain “rights and things”. These amounts include:
* amounts received on a periodic basis that were accruing but were not due at the time of death, such as employment income, interest, rent, royalties, certain annuities, and other amounts;
* certain investment tax credits;

Reference: ITA 111(2), 70(1), 70(2), 70(5)