I along with my cousins just sold some real property located in in Quebec that was inherited from our grandfather to our parents, and then to us. I received a 1/8 share of the proceeds which amounts to about $40,000.00.

I live in the United States (New Jersey) and was informed that since I am a nonresident I will have to pay Capital Gains taxes to Canada before the money will be released to me.

I have no other income or ties to Canada. I would like to know what the capital gains rates are in Canada and/or Quebec and also how much the taxes would be on my share of the proceeds? Also, if it is not too cumbersome what steps are involved in the process? Thank you.

  • 5
    You will also have to pay capital gains taxes in the US. But do check what the basis of your ownership is. At least in the US, that would be the FMV when you inherited it, and I suspect same goes for Canada. That would likely to reduce significantly your taxable income from the sale.
    – littleadv
    Nov 11, 2013 at 21:35

1 Answer 1


For the USA part of the equation the "fair market value" is the value at the time you inherited it (time of death), and thus there is no capital gain.

  • 2
    More precisely, it's FMV on the day of death, not when you actually got the proceeds. Apr 10, 2014 at 2:40
  • Presumably there would be a potential capital gain if the (eventual) selling price was above the FMV (at time of death) because of rising house prices.
    – TripeHound
    Feb 2, 2018 at 9:46

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