Deemed Disposition At Death Calculator

Every capital property is treated as sold at fair market value immediately before death, whether or not anything actually changed hands. The terminal return picks up the whole bill at once.

Reading This Tool

How To Use This Calculator

Enter the total fair market value and cost base of capital property held at death, and whether a spousal rollover applies.

Property passing to a surviving spouse or spousal trust generally rolls over at cost, deferring the gain entirely until the spouse's own death or an earlier disposition. Everything else is deemed disposed at fair market value on the terminal return, all in one tax year.

Your Inputs

Total FMV Of Capital Property At Death $3,400,000

Total Adjusted Cost Base $650,000

Does Property Pass To A Surviving Spouse Or Spousal Trust?

Terminal Return Marginal Tax Rate 53.0%

A partial rollover is also possible, some property to a spouse and some to other beneficiaries, this models an all-or-nothing scenario for clarity. Registered accounts like RRSPs and RRIFs have their own separate deemed disposition rules, not modeled here.

Terminal Return Tax Liability

Tax Liability On The Terminal Return

Total Capital Gain

Taxable Capital Gain (50%)

Estate Value: Tax vs. Net To Beneficiaries

Private company shares may qualify for the Lifetime Capital Gains Exemption on the terminal return, and post-mortem planning strategies can further reduce or eliminate double taxation on private corporation shares, neither modeled in this simplified estimate.

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