Estate Tax on Death Calculator
Estimate the income tax that arises on death from the deemed disposition of capital property, for one spouse or both, then turn the result into a client-ready letter, not just a number on screen.
The calculation is only half the work. CodaraFlow finishes the explanation, the tables, and the client-ready letter.
The Key Amounts Used in the Estimate
This is one of the built-in calculations in CodaraFlow. Enter the client’s property, registered plans, and available balances, and it revalues capital property to fair market value and works the tax through, applying the relief that fits the file.
- Deemed Disposition on DeathGenerally, capital property is deemed disposed of at fair market value immediately before death, subject to available rollovers and other exceptions.
- One Spouse or BothModel each estate on its own, so a couple sees the picture for the first death and the second.
- Every Relief and Inclusion That AppliesEach relief and income inclusion the file qualifies for is applied automatically. The provision behind each is listed under The Basis below.
- The Estimated TaxThe bottom-line income tax on the final return, the figure the whole letter is built around.
- Liquidity CheckLiquid assets measured against the estimated tax, so a shortfall is flagged before the family is surprised by it.
From the Calculation to a Client-Ready Letter
The number is not the deliverable. In CodaraFlow the result drops straight into a letter section: the firm’s approved wording, the computation tables, and the statutory notes that actually apply to this client, written in for you. Exported as an editable Word document on your letterhead.
The same reviewed explanation, not whatever the preparer types today.
Spousal rollover, principal residence, exemption, losses, registered plans: each note appears only when the file triggers it.
The property-by-property computation is laid out and footed automatically.
Finish it in Word, on your firm’s letterhead. No proprietary format.
Grounded in the Provisions You Cite
Each part of the estimate ties to the section a reviewer would expect. The wording is firm-editable; the sections are fixed by the Act.
Property is deemed disposed at fair market value immediately before death.
Qualifying capital property may transfer on a tax-deferred basis to a surviving spouse, common-law partner or qualifying spousal trust, provided the statutory conditions are met.
May shelter some or all of the gain for qualifying years designated by the deceased’s family unit.
Applied to the available balance against qualifying property.
Unused net capital losses may be applied in computing taxable income for the year of death and the immediately preceding year, subject to the statutory adjustments.
The fair market value of an RRSP or RRIF is generally included in income on death, subject to deductions or tax-deferred transfers available for qualifying beneficiaries.
Available non-capital losses from other years may be deducted on the final return, subject to the normal carryover rules.
It estimates federal and provincial income tax arising on death based on the information entered. It excludes probate or estate administration tax, foreign estate taxes and items not specifically included in the calculation.
Calculations Firms Reach For Alongside It
Get a working demo account, run this calculation on a real file, and export the letter it produces.
Everything is computed from the figures you enter and assembled from your firm’s approved wording. The app never connects to AI.
Editable Word documents on your firm’s letterhead. Monthly pricing, no long-term contracts.
Questions About This Calculation
Is this a standalone calculator?
No. It’s one of the built-in calculations inside CodaraFlow. The result becomes part of a client letter, complete with the tables and the statutory notes that apply, not just a figure you copy out by hand.
Does it prepare or file the final return?
No. It estimates the tax so you can advise the client and plan around it. The return itself is filed in your tax software.
Can we change the wording and which notes appear?
Yes. Every sentence and every statutory note is firm-editable, and can be overridden on an individual letter.
Does any client data go to an AI?
No. The app never connects to AI. Deliverables are assembled from structured facts and your firm’s approved wording.