When a person dies, the liquidator of the succession (refer to the definitions) must file the deceased’s income tax return for the year of death (refer to the definitions) and for any previous years for which the deceased has not filed. In certain cases, the liquidator has the option of filing more than one return for the year of death. Principal return In the principal return, the liquidator must report all income earned by the person up to the time of death, regardless of whether the amounts were received during his or her lifetime. This includes interest, rentals, royalties, annuities, salaries, wages and other forms of income that accumulate daily in equal amounts during the period in which they are payable. Separate returns In certain cases, the liquidator has the option of filing, in addition to the principal return, up to three other separate returns for the year of death. In this way, the income of the deceased person can be split, and the income tax payable in his or her name can be reduced or brought down to zero. A separate return can be filed to report
Deemed disposition An expression used to mean that property is considered sold or disposed of, even if no actual sale or disposition has taken place. Liquidator of the succession A person who liquidates, administers or controls a succession (that is, an estate) on behalf of the heirs. Year of death The year beginning on January 1 and ending on the date of death of the person for whom the income tax return is completed. Codicil A testamentary act that modifies, supplements or cancels a previous will. Holograph will A will that is written out entirely by hand and signed by the testator.
Persons who complete the income tax return(s) of a deceased person
Taxation Act , CQLR, chapter I-3
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