Inheriting a Building: Will There Be Taxes Payable?

Updated on May 4, 2023

Did you know that an individual inheriting a building could have to pay GST and QST upon receiving the inherited property?

In fact, the transmission of estate property to heirs constitutes a sale and as a result, can be subject to the Goods and Services Sales Tax (GST) and the Québec Sales Tax (QST). Therefore, when transmitting a commercial building, the estate (i.e. the seller) will have to collect and remit GST and QST.

There are exceptions

There are however situations where the estate does not have to collect sales tax. For example, when the heir (or acquirer) is registered for GST and QST, the estate is not required to collect taxes that are otherwise applicable.

Before transmitting estate property, make sure you properly understand your obligations and comply with commodity tax rules.

The Raymond Chabot Grant Thornton’s tax advisors can guide you in this type of tax planning. Contact our professionals for assistance with this process.