Selling a Parent’s House in Georgetown? Here’s If You’ll Owe Taxes (Fast, Clear Answer)

do i have to pay taxes when i sell my parents house

“Do I have to pay taxes when I sell my parents’ house?” — You want a straight, fast answer. Read this first.

Quick, direct answer

Most of the time you do NOT pay new capital gains tax when you sell a home you inherited — as long as the sale price is close to the house’s value when your parent died. Here’s why.

What really happens (simple steps)

• When a person dies, Canada treats their assets as if they were sold at fair market value right before death. This is called a “deemed disposition.”
• Any capital gain up to that date is reported on the parent’s final tax return. The tax bill, if any, is handled in the estate.
• If you inherit the house, your tax cost base becomes the fair market value at the time of death.
• If you sell later, you only pay tax on the price increase that happened AFTER your parent died.

Example: Parent’s home was worth $600,000 when they died. You inherit it. You sell it for $610,000 one month later. Your taxable gain is $10,000. Canada includes 50% of capital gains in income, so you report $5,000 as income. That’s the tax math.

When you might owe taxes when selling your parents’ house

• The parent gifted the house to you while alive. Gifts trigger the same deemed disposition rule at the time of gift. So tax may have applied then.
• The parent did not claim the principal residence exemption for the years they lived there. If the home gained value from purchase to death, the parent might owe tax on part of that gain on their final return — not you.
• You held the house for years after inheritance and it rose in value. You’ll owe tax on the gain that happened after the date of death.
• The house was not a regular residential property (big rental property, commercial use, or major renovations making it inventory). Then sale could be business income, taxed differently.

How this works in Georgetown, Ontario — local things you must know

• Georgetown is part of Halton Hills. Local market moves fast. Houses often sell at or above fair market value. If you sell soon after inheriting, you likely pay little or no tax on capital gains.
• Ontario has an Estate Administration Tax (often called probate fees). If the executor needs probate to transfer title, the estate may pay this fee. The executor can confirm with the Halton court or an estate lawyer.
• Ontario property transfer tax is not charged to heirs in the same way as a regular sale. When you sell the house on the open market, normal selling rules apply — no HST on the resale of used residential housing.
• Municipal property taxes, final utility bills, and outstanding liens must be cleared by the estate before transfer or sale. These affect your net proceeds.

Steps to sell a parent’s house in Georgetown the smart way

1. Confirm you are the owner or executor. Get the will and any legal documents. If no will, get legal help.
2. Get a local appraisal or market evaluation. In Georgetown, property value varies block by block. Use a Halton Hills or Georgetown appraisal.
3. Talk to an accountant experienced in estate and capital gains tax in Ontario. They will confirm if tax was triggered on the parent’s final return and how much you might owe if you sell later.
4. Talk to an estate lawyer about probate (Estate Administration Tax). They handle title transfers and paperwork in Halton County.
5. Prep the home for sale. Fix safety issues. Small repairs and staging bring better offers fast in Georgetown.
6. List with an experienced local realtor who sells estate properties. They handle showings, offers, and closing details.

Ways to reduce or avoid tax legally

• Sell soon after inheritance. If sale price ≈ value at date of death, taxable gain is near zero.
• Keep clear records: appraisal done near date of death proves cost base.
• If the property was a principal residence for your parent, the principal residence exemption may have already removed past gains on their final return. Confirm with the accountant.
• If you inherit and move into the house and make it your principal residence for years, future capital gains on that period could be sheltered when you sell. This can be complex; ask an accountant.

Pricing and timing tips for Georgetown sellers

• Get a local CMA (comparative market analysis). Georgetown buyers watch school zones, commute to Toronto, and neighbourhood character.
• Spring and early fall get more buyers in Halton Hills. But good homes sell year-round if priced right.
• If the house needs work, consider the costs vs net proceeds. Small updates often pay back.

What to expect at closing in Ontario

• The estate pays final bills, property taxes, and any estate administration tax required.
• The sale closes like any Ontario residential sale. The buyer’s lawyer does title work. You get proceeds after debts and fees are paid.
• Any capital gains tax owed (from gains after the date of death) is paid by the person reporting the sale — usually the beneficiary who sold.

Local resources in Georgetown, ON

• Halton Hills municipal office for property tax info.
• Local estate lawyers in Halton for probate help.
• Local accountants who handle personal and estate tax returns.
• Local realtors who know Georgetown market and buyers.

Short checklist before you list

• Confirm ownership or executor status.
• Get a market value appraisal near date of death.
• Talk to an accountant about the parent’s final return.
• Confirm whether probate is needed and cost.
• Clean, repair, stage, and photograph the house professionally.

Why work with a local expert

A local expert knows Georgetown values. They know where buyers come from, what features sell fast, and how to move an estate sale smoothly. They save money by pricing right and avoiding long hold times that can increase costs.

If you need direct help in Georgetown, contact a local realtor who focuses on estate sales and tax-smart moves. Call or email: tony@sousasells.ca | 416-477-2620 | https://www.sousasells.ca

FAQ — Selling a parent’s house in Georgetown

Do I pay capital gains tax when I inherit and sell the house?

Usually you only pay tax on gains after the parent’s death. The cost base is the fair market value at the date of death. If you sell at or near that value, little or no tax is due.

What if my parent gifted the house to me before they died?

Gifts are treated as deemed dispositions at the time of gift. That can trigger capital gains for the parent then. You would get the adjusted cost base at that gift date. Talk to an accountant.

Does Ontario charge estate tax when transferring the home?

Ontario has an Estate Administration Tax (probate fee). It applies when probate is required. The executor pays it from the estate. Get a lawyer to confirm if your estate needs probate.

Is HST charged when I sell a used house in Georgetown?

Resale of used residential housing is generally exempt from HST. HST might apply to new builds or certain major rebuilds. Your Realtor and lawyer confirm.

What paperwork proves the value at date of death?

Get a professional appraisal or a certified market evaluation dated close to the date of death. This helps set the cost base.

Can I avoid all tax by making the house my principal residence after I inherit it?

You can make it your principal residence. Future gains while it is your principal residence may be sheltered. Rules are complex. Get an accountant.

Who pays outstanding property taxes and utility bills?

The estate pays them before closing. Ensure municipal arrears are cleared.

How long does it take to sell in Georgetown?

It depends on price and condition. Ready homes priced right can sell in weeks in Halton Hills. Estate sales with repairs can take longer.

Do I need a realtor who knows estate sales?

Yes. Estate sales require extra paperwork and coordination. Choose a Realtor experienced in Halton Hills and estate work.

What other costs cut into my proceeds?

Legal fees, realtor commission, estate admin costs, probate fees (if any), clearing liens or debts, repairs, and property taxes.

Final, simple plan

1. Confirm legal status and get the appraisal at date of death.
2. Talk to an accountant and estate lawyer in Halton.
3. Prep and list with a local realtor who knows Georgetown.
4. Sell at market. Pay any taxes on gains after the date of death.

Clear, local, fast. If you want a market valuation for your parent’s home in Georgetown or help with the sale, call or email: tony@sousasells.ca | 416-477-2620 | https://www.sousasells.ca

Sale questions? I’ll answer straight.