Do children pay tax on the money they received after selling their mother's house?

Mother died last year.  One child lived in the house after the death.  Later they sold the property and divided the money.  Do they need to report it on their tax return?  If yes, what is the procedure to report?


Was the property transferred to their names? If not, and a significant gain from date of death to date of sales was realized, then you need to file a trust return (significant being more than $500.00). Most of the times, the house is appraised and the selling price is below appraisal, so no capital gains is deemed to have happened and the proceeds do not need to be taxed and typically we would recommend that it makes no sense to file the T3 to claim the capital loss.

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