A clearance certificate certifies that all amounts for what the deceased is liable to CRA have been paid. As legal representative you may want to get a clearance certificate before you distribute any property under your control<br />If you do not get a clearance certificate you can be liable for any amount the deceased owes. <br />Phone us and we can help you obtain a clearance certificate.<br />Deemed Disposition This is a term often used but not understood<br />When a person dies it is normally considered that the person has disposed of all capital property right before death. This is called deemed disposition. <br />Right before death it is considered that the person has received the deemed proceeds of disposition even though there was not an actual sale. There can be a capital gain or capital loss. <br />There could be a recapture of capital cost allowance if proceeds of disposition are more than the undepreciated capital cost. If proceeds of disposition is less than cost there could be a terminal loss.
