A clearance certificate certifies that all amounts for what the deceased is liable to CRA have been paid. As legal representative you may want to get a clearance certificate before you distribute any property under your control
If you do not get a clearance certificate you can be liable for any amount the deceased owes.
Phone us and we can help you obtain a clearance certificate.
Deemed Disposition This is a term often used but not understood
When a person dies it is normally considered that the person has disposed of all capital property right before death. This is called deemed disposition.
Right before death it is considered that the person has received the deemed proceeds of disposition even though there was not an actual sale. There can be a capital gain or capital loss.
There could be a recapture of capital cost allowance if proceeds of disposition are more than the undepreciated capital cost. If proceeds of disposition is less than cost there could be a terminal loss.
