Are probate fees tax deductible on the final return in Saskatchewan?

This answer covers the law of Saskatchewan.

Whether a probate fee or other estate cost can be deducted on the final return or the estate's T3 return depends on the facts, so confirm it with an accountant before you file. The probate fee itself is a Local Registrar fee of $200 plus a levy of $7.00 per $1,000, or portion thereof, of Total Part 1 Assets on the Statement of Property.

The final return and the estate's return cover different things. The final return includes a deemed sale of all property at fair market value just before death, with any capital gain or loss reported on Schedule 3. Income the estate earns after death is reported on a T3 trust return, and a graduated rate estate can choose any year-end up to one year after death.

Timing also matters. A final return for a death between January 1 and October 31 is due April 30 of the following year, and late filing with a balance owing attracts 5% plus 1% per full month up to 12 months. Different filing dates can apply if the deceased or a spouse ran a business. A T3 return for the estate is due 90 days after the estate's year-end.