20 June 2023 STEP Roundtable Q. 1, 2023-0961341C6 - Personal-Use Property -- summary under Personal-Use Property

CRA confirmed that since an estate is a separate taxpayer from the deceased, items that were personal-use property (PUP) of the deceased and, thus, deemed on death to be disposed of for minimum proceeds and ACB of $1,000 per item pursuant to s. 46(1), could potentially not be PUP to the estate (e.g., they could be put in storage). If not PUP to the estate, they would be deemed pursuant to s. 70(5)(b) to have an ACB equal to their FMV immediately before death (without regard to the $1,000 rule) and any subsequent sale would generally give rise to a capital gain or loss computed in the normal way.