  Preparing a trust (T3) return |
When adding a new client, tick all relevant sections from the SmartStart client profile screen and click Continue. A set of keywords will appear on the screen from the permanent sections Identification and Income, and from all the other sections that were ticked in the SmartStart client profile screen. (Please refer to the document titled The DT Max SmartStart input assistant for detailed information about this feature.)
There is a minimum of keywords required in order to calculate a Trust return. These keywords are referred to as permanent keywords and are required for all clients. These same keywords will be carried forward from year to year in order to minimize the data entry in the following year.
The following data entries will be required to complete a basic trust return with DtMax:
The next two keywords will be automatically populated based on the information entered in the User's defaults (Alt+F2) in the preferences menu. However, if this information does not apply to the client, simply override this choice by clicking on the arrow to view the other possible options.
| Language : | This keyword allows you to specify the language in which to print the tax
return. This only applies to the production copy of the tax return. You still
have the option to work and view the displayed tax return in one language
while designating another for printing.
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| Trust : | Testamentary or Inter vivos can be selected from the drop-down menu.
Trust is the main keyword heading a group. Other keywords pertaining
to the trust information will open within the group. Enter all necessary
information.
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| Trust-Type : | A menu is provided for this keyword thus allowing the tax preparer to identify
the particular type of trust, for tax purposes.
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| Residence : | province or territory of residence of the trust. This information will used
to determine which provincial forms and tax to calculate.
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| Date.t : | date of death (testamentary) or the date of creation of the trust (inter vivos).
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The next important information to enter is that of the Trustee. All information pertaining to the trustee should be entered in the Trustee group. However, the main keywords that should be entered in this group are the following:
| Trustee : |
last name or business name of the trustee.
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| First-Name : |
first name of the trustee (if an individual).
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| Title : |
position or title (ex: Trustee, executor, custodian, etc).
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| Address : |
the trustee's address will automatically appear both as the mailing address
on the return and as the issuer's address on the information slips generated
by DT Max. If you wish to have a different address than that of the
trustee's appear as the mailing address on page one of the return, use the
Address keyword in the Trustee group and select the option Mailing
address (if different than trustee's).
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| Sign-Date : |
signing date of the return.
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The Trustee information, as well as the beneficiary information, which follows, will be carried forward to future years. A separate Beneficiary group should be entered for each beneficiary.
| Beneficiary : |
enter the status of the recipient of income from the trust. It is
important to choose the proper type of beneficiary as DtMax will use
this information to properly calculate and allocate certain types of
income and/or credits. If no income is to be allocated, the
beneficiary.
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| Last-Name : |
last name of the beneficiary (if an individual).
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| First-Name : |
first name of the beneficiary (if an individual).
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| Allocation : |
specify how the income of the trust is to be allocated to each
beneficiary.
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| Allocation-Type : |
enter the type of allocation to the beneficiaries (either a percentage or fixed amount).
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| Income-Type : |
specify the type (income, capital gains, or income AND capital gains) and percentage or amount of income to be allocated.
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The following example illustrates how DT Max allocates the income of the trust in the case of multiple beneficiaries:
Beneficiary A is to receive a fixed amount of $ from all sources of income, while beneficiary B is to receive a % of only the residual income of the trust.
Method
Enter beneficiary A using Allocation-Type and Fixed amount, then Income-Type and Income and capital gains, and enter the ($) amount to be allocated.
Enter beneficiary B using Allocation-Type and Percentage, then Income-Type and Income, and enter the (%) value to be allocated.
The tax liability generated by the unallocated income of the trust, which is remaining in the trust, will then be calculated as payable by the trust.
Entering Income and/or Capital gains (losses) Information
| IncomeSource : |
select the appropriate type of income of the trust (pension, foreign pension,
dividends, other investment, foreign investment, limited partnership (loss),
other). If none of the options available apply, leave this keyword blank.
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| T-Slip : |
information slip received by the trust.
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| Partnership : |
statement of partnership income received by the trust.
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| CapitalProp : |
enter the relevant type of capital property.
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| Business : |
enter the business type and prepare a statement of business income and
expenses.
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Entering information to arrive at taxable income
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Total-Inc-Ded : |
deductions and expenses used to arrive at net income.
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Donations : |
charitable donations made in the course of the year.
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Amount-CF : |
carry forward of donations amounts not claimed in prior years.
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Tax-Benefit : |
type and amount of taxable benefits.
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Loss-CF : |
to enter the type, year, and unused amount of losses carried forward from prior years. Note that for existing clients, this information is automatically carried forward by DT Max.
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Loss-CB : |
type, year, and amount of losses to carry back.
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Entering information on tax and credits
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Instal-Paid : |
if you want the trust to claim a deduction for instalments already paid.
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Other-FIT |
and Other-PIT enable you to enter other federal or other provincial income tax deducted at source.
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Tax-Credits : |
select the jurisdiction of the tax credit, then select applicable credit(s) for that jurisdiction.
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Historical information
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Cap-History : |
allows you to enter the capital gains (losses) historical information from prior years. Note that for existing clients, this information is automatically carried forward by DT Max.
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Trust-Hist : |
historical information of the trust from prior years. Note that for existing clients, this information is automatically carried forward by DT Max.
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Other keywords
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Apply-TrustAcct# : |
application for a trust account number.
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Clearance : |
request for a clearance certificate.
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DirectDeposit : |
request for direct deposit.
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T3-Adjust : |
request for a federal or provincial adjustment to the trust income tax return.
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Notes : |
enter any notes or reminders to be kept for future reference.
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Note:
The words "Estate of" will precede the name of the trust by default on the T3 and RL-16 slips if the trust is a testamentary trust.
September 8, 2016
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