Rights or things are amounts that had not been paid to the deceased at the time of their death and that, had the person not died, would have been included in their income when received. Rights or things can come from employment and other sources.

You can file a return for rights or things to report the value of the rights or things at the time of death. However, if you file a return for rights or things, you have to report all rights or things on that return, except those transferred to beneficiaries. You cannot split rights or things between the final return and the return for rights or things.

If you transfer rights or things to a beneficiary, you have to do so within the time limit for filing a return for rights or things. The beneficiary must report the income from the transferred rights or things on their return.

Employment rights or things
Employment rights or things are salary, commissions, and vacation pay, as long as both of these conditions are met:

• The employer owed them to the deceased on the date of death
• They are for a pay period that ended before the date of death

Other rights or things
Other rights or things include:

• old age security (OAS) benefits that were due and payable before the date of death
• uncashed matured bond coupons
• bond interest earned to a payment date before death, but not paid and not reported in previous years
• unpaid dividends declared before the date of death
• supplies on hand, inventory, and accounts receivable if the deceased was a farmer or fisher and used the cash method
• inventory of an artist who has elected to value their inventory at nil
• livestock that is not part of the basic herd and harvested farm crops, if the deceased was using the cash method
• work in progress, if the deceased was a sole proprietor and a professional (an accountant, a dentist, a lawyer [in Quebec an advocate or notary], a medical doctor, a veterinarian, or a chiropractor) who had elected to exclude work in progress when calculating their total income

For more information about rights or things, see interpretation bulletins IT212R3, Income of Deceased Persons - Rights or Things, and its Special Release, IT234 , Income of Deceased Persons - Farm Crops, and IT427R, Livestock of Farmers.

Some items that are not rights or things include:

• elected split-pension amounts
• amounts that accumulate periodically, such as interest from a bank account
• bond interest accumulated between the last interest payment date before the person died and the date of death
• registered retirement savings plan (RRSP) income
• amounts withdrawn from the AgriInvest Fund 2
• property included in capital cost allowance Class 14.1 (formerly eligible capital property) and capital property
• Canadian or foreign resource properties
• land in the deceased's business inventory
• income from an income-averaging annuity contract

How to file - If you decide to file a return for rights or things, you will need to:

1. Get an Income Tax and Benefit Return

2. Write "70(2)" in the top right corner of page 1 of the return

3. For instructions on completing a return, see How to complete the final return

You have to file this return by the later of:

• 90 days after the CRA sends the notice of assessment or reassessment for the final return
• one year after the date of death

However, the due date for any balance of tax owing on a rights or things return depends on the date of death. See Due date for a balance owing.

Election to delay payment of income tax
In some cases, you can delay paying part of the amount owing from rights or things. However, the CRA still charges interest on any unpaid amount from the day after the due date to the date you pay the amount in full.

If you want to delay payment, you will have to give the CRA security for the amount owing. You also have to complete Form T2075, Election to Defer Payment of Income Tax, under subsection 159(5) of the Income Tax Act by a Deceased Taxpayer's Legal Representative or Trustee. For more information, call 1-888-863-8657.

How to cancel a return for rights or things
If you file a return for rights or things before the due date, but later want to cancel it, the CRA will cancel the return if, on or before the filing due date for the rights or things return, you send the CRA a note asking them to cancel the return.

Forms and publications

• Federal Income Tax and Benefit Guide
• Guide T4011, Preparing Returns for Deceased Persons
• Form T2075, Election to Defer Payment of Income Tax, under subsection 159(5) of the Income Tax Act by a Deceased Taxpayer's Legal Representative or Trustee
• Interpretation bulletin IT212R3, Income of Deceased Persons - Rights or Things
• Interpretation bulletin IT212R3SR, Special Release: Income of Deceased Persons - Rights or Things
• Interpretation bulletin IT234, Income of Deceased Persons - Farm Crops
• Interpretation bulletin IT427R, Livestock of Farmers