Do you have a Will and a Power of Attorney (POA)?
Will, no POA
POA, no Will
Do not know

Link exchange
Are you interested in link exchange? Contact Us
Home » Taxation
Deductibility of Executor Expenses
Category :- Taxation

Author :- Steven Frye 
* Please rate and share the article if you find it interesting *

Posted on June 17, 2014, 6:04 pm
(1 Rating)

Generally speaking, an executor who earns fees in the course of carrying on a business may deduct the expenses net of any estate reimbursement against the fees in computing net income for tax purposes. An executor who is not performing their duties in the course of carrying on a business is considered to have received the fee for acting as executor as income from an office.

The Income Tax Act (ITA) limits the deductible expenses from income from an office or employment. Generally, The ITA allows a taxpayer to deduct travel (including meals) and motor vehicle expenses, if the following conditions are met:

1. The taxpayer was ordinarily required to carry on the duties of the office or employment away from the employer’s place of business or in different places;
2. The taxpayer was required under the contract of employment to pay the travel and motor vehicle expenses incurred in performing the duties of the office or employment; and
3. The taxpayer did not receive a reasonable allowance for the travel and motor vehicle expenses.

In a recent technical interpretation, the Canada Revenue Agency(CRA) took the view that the executor’s appointment to administer an estate does not typically require the executor to bear the cost of estate administration as an estate is generally obliged to reimburse an executor’s properly incurred out-of-pocket expenses. Accordingly, in the CRA’s opinion, the second condition above cannot generally be met therefore an executor who receives their fee as income from an office or employment cannot deduct non-reimbursed expenses.


Source: http://www.allaboutestates.ca/estate-planning/deductibility-executor-expenses/

Rate this article   

Ways to find the cheapest car insurance quote in Ontario
Car insurance is a hot topic in Ontario because car insuranc....
(1 Rating)
How Home Insurance in Calgary Works
There are many reasons to get home insurance in Calgary. Fir....
(1 Rating)
Comparing Term Life, Whole Life, and Universal Life Insurance
When looking for life insurance, determining which type best....
(1 Rating)
Home Insurance in Edmonton – How to Find the Cheapest Rates
There are so many insurance companies on the Canadian market....
(1 Rating)
5 Things You Must Be Ready to Pay for When Submitting a Home Insurance Claim
Risks associated with your home come in all possible shapes ....
(1 Rating)
We do not like ads, banners, Google ads or any other kind of promotion. We promise to never put such ads on our site.
Greengeeks.com-Leading Web Host Provider
Our web provider, has very reliable support (: 2013)

Contact us for more details

Keywords: Financial podcasts, investment podcasts, canadian financial news, insurance articles 2013, best insurance articles, minimize taxes article, information about, how to save, how to minimize, how submit article, post your article, tax returns, T4011 guide, how to T4011, tax credits, child tax benefits