When is &quot;at the time of the gift or inheritance&quot;?
<p>"Similarly, if you received specified foreign property as a gift, or inheritance, the cost amount is its fair market value at the time of the gift or inheritance"</p>

<p>Question:
If I am the beneficiary of a foreign non qualified annuity and I opt to leave the annuity in place for a few years (five year rule) and take out a distribution here and there.....</p>

<p>What is the timing of this gift?  would I be in receipt, time of death, time of reporting death to insurance company, time of receipt of distributions?</p>

<p>Would the full amount of the annuity be a part of my calculation of ACB for currency gains/losses or just the distribution?</p>

<p>That would be the moment you came into the possession of the item.   Specific to the clause, it's looking for the fair market value of the item (if it's not a specific dollar sum) when you received it (once upon a time, during the Ming Dynasty, you could get Ming Vases for a lot cheaper than you can today, since that Dynasty ended in 1644 and by default any Made in China Vase you can buy today isn't going to be a Ming Dynasty vase).</p>

<p>Basically put, when the item was given to you for free, how much would you have had to pay for an identical item at the same time?</p>

tax-law