US Expat living in Canada nherited $$ from USA, it was put in a bank account in the USA. When this money is ether spent or moved to Canada what do I use as the initial value .. adjusted cost base. Is it the value in Canadian .. when I received the funds ....or the value at time of death? thanks
Foreign Inheritance - ACB
- Thread starter Mswalleye
- Start date
I understand that there is no inheritance tax but having left the money in my account in the usa, when I either spend that money or transfer it to Canada it will incur a gain or loss. I need to know the value of the funds in Canadian so that when the money is either spent or transferred to Canada I know what this gain or loss is. I am thinking the exchange I would use for the cash would be when I received it? I also was beneficiary of an annuity and am thinking the value of that would be at the time of death? ... not certain though.
You use the exchange rate on the date you received the fund as the ACB. You do not incur a capital gain or loss if you transfer the fund to Canada in US dollars, you only incur a gain or loss when you convert the fund into Canadian dollars.