  Identification |
Use the keyword Trust-Name to enter the legal name of the trust, which will appear on the trust return. This is the name by which the trust will be identified.
Use the keyword Acct-Number to enter the federal account number for the trust.
This account number will be printed on the trust's federal return.
Use the keyword ID-Number to enter the trust's Quebec identification number.
This number will be printed on the trust's Quebec return.
Use the keyword Begin-Date to enter a different date on which the taxation period is to begin.
Use the keyword Year-End to enter the taxation year-end of the trust.
Use the keyword Language to choose the language in which you want the final copies of the return and all DT Max correspondence to be printed.
The following options are applicable for the keyword Language.
Use the keyword Estate-of to indicate whether it should be printed on the T3 slips followed by the trust name in the case of a testamentary trust.
DT Max will automatically default to printing "Estate-of" on the T3 slips unless otherwise indicated through the option in preferences or with this keyword.
Note that when used, this keyword takes precedence over the user's defaults.
Use the keyword # to generate the form T3APP in order to apply for a trust account number.
Use the keyword Document.app to indicate whether a signed copy of the trust document or will is attached to the T3 APP form. If the document is not attached please provide an explanation.
The following options are applicable for the keyword Document.app.
Attached
Not attached (explain)
Use the keyword NR-Elections.app to indicate whether the non-resident trust is registering solely for the purpose of filing certain special elections or returns.
Use the keyword CRA-Info.app to indicate whether there is any addition CRA information required to be entered on form T3 APP.
Use the keyword Payroll-Acct-No to enter the payroll account number in Section 6, Additional trust information, on form T3 APP.
Use the keyword Registration-No to enter the CRA registration number in Section 6, Additional trust information, on form T3 APP.
Use the keyword Plan-Number.cra to enter the plan number in Section 6, Additional trust information, on form T3 APP.
Use the keyword Multi-Sign to indicate whether there are additional trustees named in the legal document that are required to sign the application.
If there are multiple signatures required, DT Max will automatically enter all the trustees' names that have been entered in the Trustee group.
Use the keyword Trust to indicate the type of trust that was created.
A testamentary trust is a trust or estate generally started on the date a person dies. All testamentary trusts are personal trusts. The terms of the trust are established by the will or by court order in relation to the deceased individual's estate under provincial dependant's relief or support law. Generally, this type of trust does not include a trust created by a person other than a deceased individual, or a trust created after November 12, 1981, if any property was contributed to it other than by a deceased individual.
An inter vivos trust is a trust that is not a testamentary trust.
The following options are applicable for the keyword Trust.
Testamentary trust
Inter vivos trust
Use the keyword Trust-Type to select the specific type of trust that was created.
The following options are applicable for the keyword Trust-Type.
Spousal or common-law partner trust Post-1971, the spouse or common-law partner trust includes both a testamentary trust created after 1971 and an inter vivos trust created after June 17, 1971, for which the living beneficiary spouse or common-law partner is entitled to receive all the income that may arise during the lifetime of the spouse or common-law partner, and that spouse or common-law partner is the only person who can receive, or get the use of, any income or capital of the trust during their lifetime.
Pre-1972, the spouse or common-law partner trust includes both a testamentary trust created before 1972 and an inter vivos trust created before June 18, 1971, for which the beneficiary spouse was entitled to receive all the income during the spouse's lifetime, and no other person received, or got the use of, any income or capital of the trust. These conditions must be met for the period beginning on the day the trust was created, up to the earliest of the following dates:
- the day the beneficiary spouse dies;
- January 1, 1993; or
- the day on which the definition of a pre-1972 spousal trust is applied.
Graduated rate estate (GRE) A graduated rate estate, at any time, means an estate that arises on and as a consequence of an individual's death if:
- that time is no more than 36 months after that death;
- at that time the estate is a testamentary trust;
- the individual's social insurance number or other information acceptable to the Minister is provided in the estate's return;
- the estate designates itself as the graduated rate estate of the deceased individual; and
- no other estate designates itself as the graduated rate estate of that individual.
Trust for a minor
Qualified disability trust (QDT) A qualified disability trust for a tax year is a testamentary trust that makes a joint election in its T3 return to be a qualified disability trust for the year. The joint election must be made together with one or more beneficiaries of the trust (referred to as an electing beneficiary). In addition, the following must be met:
- the election must include each electing beneficiary's social insurance number;
- each electing beneficiary must be named as a beneficiary by the particular individual in the instrument under which the trust is created;
- each electing beneficiary must be eligible for the disability tax credit for the beneficiary's tax year in which the trust's year ends;
- no electing beneficiary can jointly elect with any other trust to be a qualified disability trust for the other trust's tax year that ends in the beneficiaryfs tax year;
- the trust must be resident in Canada for the year; and
- where the trust was a qualified disability trust for a preceding tax year:
- it is not the final tax year of the trust prior to the trust ceasing to be resident in Canada;
- at the end of the trust's tax year, at least one of the beneficiaries of the trust must have been an electing beneficiary of the trust in a preceding year; and
- no capital distributions can be made by the trust in the year other than to a beneficiary who was an electing beneficiary of the trust for the year or a preceding year.
Unit trust A unit trust is an inter vivos trust for which the interest of each beneficiary can be described at any time by referring to units of the trust. The trust must reside in Canada, and its only undertaking is the investing of its funds in property (other than real property, or an interest in real property), and/or acquiring, maintaining, improving, leasing, or managing real property or an interest in real property that is capital property of the trust. The trust also has to satisfy the other conditions of the Act, as outlined in subsection 108(2).
Mutual fund trust A mutual fund trust is a unit trust that resides in Canada. It also has to comply with the other conditions of the Act, as outlined in section 132 and the conditions prescribed by Regulation 4801.
Communal / Religious organization With respect to communal organizations, an inter vivos trust is deemed to exist when a congregation:
- has members who live and work together;
- does not permit its members to own property in their own right;
- requires that its members devote their working lives to the congregation's activities; and
- carries on one or more businesses directly, or manages or controls the businesses through a business agency, such as a corporation or trust, to support or sustain its members or the members of another congregation.
Employee benefit plan The employee benefit plan generally refers to any arrangement under which an employer makes contributions to a custodian, and under which one or more payments will be made to, or for the benefit of, employees, former employees, or persons related to them.
Registered segregated fund Considered to be an inter vivos trust, the registered segregated fund is a related segregated fund of a life insurer for life insurance policies. The fund's property and income are considered to be the property and income of the trust, with the life insurer as the trustee.
Partially registered segregated fund
Non-registered segregated fund
Non-profit organization The non-profit organization is an organization (for example, club, society, or association) that is usually organized and operated exclusively for social welfare, civic improvement, pleasure, recreation, or any other purpose except profit. The organization will generally be exempt from tax if no part of its income is payable to, or available for, the personal benefit of a proprietor, member, or shareholder.
Employee trust The employee trust is an inter vivos trust. Generally, it is an arrangement established after 1979, under which an employer makes payments to a trustee in trust for the sole benefit of the employees. The trustee has to elect to qualify the arrangement as an employee trust on the trust's first return. The employer can deduct contributions to the plan only if the trust has made this election and filed it no later than 90 days after the end of its first taxation year. To maintain its employee trust status, each year the trust has to allocate to its beneficiaries all non-business income for that year, and employer contributions made in the year. Business income cannot be allocated, and is taxed in the trust.
Personal trust A personal trust is either:
- a testamentary trust; or
- an inter vivos trust in which no beneficial interest was acquired for consideration payable either to the trust, or to a person who contributed to the trust.
The person or related persons who create an inter vivos trust may acquire all the interests in it without the trust losing its status as a personal trust. Unit trusts created after 1999 are not personal trusts.
Joint spousal or common-law partner The joint spousal or common-law partner trust is an inter vivos trust created after 1999 by a settlor who was 65 years of age or older at the time the trust was created, for which the settlor and the settlor's spouse or common-law partner are entitled to receive all the income that may arise from the trust before the later of their deaths, and are the only persons who can receive, or get the use of, any income or capital of the trust before the later of their deaths.
Alter ego trust The alter ego trust is an inter vivos trust created after 1999 by a settlor who was 65 years of age or older at the time the trust was created, for which the settlor is entitled to receive all the income that may arise during his or her lifetime, and is the only person who can receive, or get the use of, any income or capital of the trust during the settlor's lifetime. A trust will not be considered to be an alter ego trust if you file an election with the trust's return for its first taxation year asking not to have this provision of the Act apply.
Environmental trust
Specified investment flow-through trust The specified investment flow-through (SIFT) trust is a trust (other than a trust that is a real estate investment trust for the tax year) that meets the following conditions at any time during the tax year:
- the trust is resident in Canada;
- investments in the trust are listed or traded on a stock exchange or other public market; and
- the trust holds one or more non-portfolio properties.
TFSA - Non-Qualified Investments A trust governed by a TFSA is generally non-taxable. Where the funds in the TFSA are used in the carrying on of a business or used to acquire non-qualified investments, the trust will be taxable to the extent of the income earned from that business or those investments.
TFSA - Qualified Investments A tax free savings account (TFSA) trust under paragraph 146.2(9) of the Income Tax Act. Paragraph 146.2(9) pertains to a trust ceasing to be a TFSA due to the death of the holder. If an arrangement that governs a trust ceases to be a TFSA because of the death of the holder of the TFSA, the arrangement is deemed to continue to be a TFSA until, and to cease to be a TFSA immediately after the exemption-end time.
Tax-Free First home savings account (FHSA) The first home savings account (FHSA) is a registered plan to help individuals save for their first home. An FHSA can be opened starting April 1, 2023.
An FHSA trust has to complete and file a T3 return if the trust carried on a business or held non qualified investments during the tax year. The trust will then be taxable to the extent of the income earned from that business or those investments (Type of trust code 342 on the T3 Return).
When the last holder of an FHSA dies, and the trust still exists after the exempt period, it is deemed to dispose of all its property at fair market value and immediately reacquire it at the same value on January 1 following the end of the exempt period. The trust loses its FHSA status, becomes a taxable inter vivos trust from that point on and is subject to the normal rules for inter vivos trusts.
Employee Life and Health Trust (ELHT)
Retirement compensation arrangement (RCA) A retirement compensation arrangement (RCA) is a plan or an arrangement under which an employer, former employer, or in some cases an employee makes contributions to a person or partnership, referred to as a custodian.
The custodian holds the funds in trust with the intent of eventually distributing them to the employee (beneficiary).
Registered retirement savings plan (RRSP) An RRSP trust has to complete and file a T3 return if the trust meets one of the following conditions:
- the trust has borrowed money and paragraph 146(4)(a) or 146.3(3)(a) of the Income Tax Act applies;
- the last annuitant has died and paragraph 146(4)(c) or subsection 146.3(3.1) of the Income Tax Act applies. If this is the case, claim an amount on line 43 of the T3 return only if the allocated amounts were paid in accordance with paragraph 104(6)(a.2) of the Income Tax Act.
If the trust does not meet one of the above conditions and the trust held non-qualified investments during the tax year, you have to complete a T3 return to calculate the taxable income from non-qualified investments, determined under subsection 146(10.1) or 146.3(9) of the Income Tax Act. If the trust is reporting capital gains or losses, it has to report the full amount (that is, 100%) on line 01 of the return.
If the trust does not meet one of the above conditions and the trust carried on a business, you have to complete a T3 return to calculate the taxable income of the trust from carrying on a business. Do not include the business income earned from the disposition of qualified investments for the trust.
Registered retirement income fund (RRIF) An RRIF trust has to complete and file a T3 return if the trust meets one of the following conditions:
- the trust has borrowed money and paragraph 146(4)(a) or 146.3(3)(a) of the Income Tax Act applies;
- the RRIF trust received a gift of property and paragraph 146.3(3)(b) of the Income Tax Act applies; or
- the last annuitant has died and paragraph 146(4)(c) or subsection 146.3(3.1) of the Income Tax Act applies. If this is the case, claim an amount on line 43 of the T3 return only if the allocated amounts were paid in accordance with paragraph 104(6)(a.2) of the Income Tax Act.
If the trust does not meet one of the above conditions and the trust held non-qualified investments during the tax year, you have to complete a T3 return to calculate the taxable income from non-qualified investments, determined under subsection 146(10.1) or 146.3(9) of the Income Tax Act. If the trust is reporting capital gains or losses, it has to report the full amount (that is, 100%) on line 01 of the return.
If the trust does not meet one of the above conditions and the trust carried on a business, you have to complete a T3 return to calculate the taxable income of the trust from carrying on a business. Do not include the business income earned from the disposition of qualified investments for the trust.
Registered disability savings plan (RDSP) An RDSP trust has to complete and file a T3 return if the trust has borrowed money and subparagraph 146.4(5)(a)(i) or 146.4(5)(a)(ii) of the Income Tax Act applies. If this does not apply and the trust carried on a business or held non-qualified investments (as defined in subsection 205(1)) during the tax year, you have to complete a T3 return to calculate the taxable income from the business or non-qualified investments. If the trust is reporting capital gains or losses, it has to report the full amount (that is, 100%) on line 01 of the return.
Registered education savings plan (RESP) An RESP trust has to complete and file a T3 return if the trust meets one of the following conditions:
- the trust has borrowed money and paragraph 146(4)(a) or 146.3(3)(a) of the Income Tax Act applies;
- the last annuitant has died and paragraph 146(4)(c) or subsection 146.3(3.1) of the Income Tax Act applies. If this is the case, claim an amount on line 43 of the T3 return only if the allocated amounts were paid in accordance with paragraph 104(6)(a.2) of the Income Tax Act.
If the trust does not meet one of the above conditions and the trust held non-qualified investments during the tax year, you have to complete a T3 return to calculate the taxable income from non-qualified investments, determined under subsection 146(10.1) or 146.3(9) of the Income Tax Act. If the trust is reporting capital gains or losses, it has to report the full amount (that is, 100%) on line 01 of the return.
If the trust does not meet one of the above conditions and the trust carried on a business, you have to complete a T3 return to calculate the taxable income of the trust from carrying on a business. Do not include the business income earned from the disposition of qualified investments for the trust.
Environmental Quality Act trust A trust under paragraph 149(1)(z.1) of the Act. This is a trust that was created because of a requirement imposed by section 56 of the Environment Quality Act. The trust must meet the following conditions:
- the trust is resident in Canada; and
- the only persons that are beneficially interested are;
- Her Majesty in right of Canada,
- Her Majesty in right of a province, or
- a municipality (as defined in section 1 of that Act) that is exempt because of subsection 149(1) from tax under Part 1 on all of its taxable income.
Nuclear Fuel Waste Act trust A trust under paragraph 149(1)(z.2) of the Act. This is a trust that was created because of a requirement imposed by subsection 9(1) of the Nuclear Fuel Waste Act. The trust must meet the following conditions:
- the trust is resident in Canada; and
- the only persons that are beneficially interested are;
- (A) Her Majesty in right of Canada,
- (B) Her Majesty in right of a province,
- (C) a nuclear energy corporation (as defined in section 2 of that Act) all the shares of the capital stock of which are owned by one or more persons described in clause (A) or (B),
- (D) the waste management organization established under section 6 of that Act if all shares of its capital stock are owned by one or more nuclear energy corporations described in clause (C), or
- (E) Atomic Energy of Canada Limited, being the company incorporated or acquired in accordance with subsection 10(2) of the Atomic Energy Control Act.
Real estate investment trust (REIT) A trust is a real estate investment trust (REIT) for a taxation year, if it is resident in Canada throughout the year and meets a number of other conditions, including the requirement that the trust derives at least 75% of its revenues from rent from, and capital gains from the dispositions of, real or immovable property, and interest from mortgages on real or immovable property. A SIFT (specified investment flow through) trust does not include a real estate investment trust (REIT).
- the rent from real or immovable properties;
- interest;
- capital gains from dispositions of real or immovable properties;
- dividends; and
- royalties.
Health & Welfare trust (HWT) Health and welfare benefits for employees are sometimes provided through a trust arrangement under which the trustees receive the contributions from the employer(s), and in some cases from employees, to provide such health and welfare benefits as have been agreed to between the employer and the employees. To qualify for treatment as a HWT, the funds of the trust cannot revert to the employer or be used for any purpose other than providing health and welfare benefits for which the contributions are made. In addition, the employer's contributions to the fund must not exceed the amounts required to provide these benefits. Further, to qualify for treatment as a HWT, the payments by the employer cannot be made on a voluntary or gratuitous basis - they must be enforceable by the trustees should the employer decide not to make the payments required. This arrangement is restricted to the following:
- a group sickness or accident insurance plan;
- a private health services plan;
- a group term life insurance policy; or
- any combination of (a) to (c).
For more information, see Interpretation Bulletin IT-85R2, Health and Welfare Trusts for Employees.
Pooled Registered Pension plans Pooled Registered Pension Plans must operate through an arrangement acceptable to the Minister. Where a trust is used, the PRPP will generally be treated as a trust for tax purposes, the administrator is the trustee and the members are the beneficiaries. A pooled registered pension plan trust will be excluded for purposes of the 21 year deemed disposition rule and other specified measures. In addition, when certain criteria are met, a pooled registered pension plan trust will be exempt from Part 1 tax.
For more information, refer to Department of Finance Press Release 2011-134.
Lifetime Benefit trust This a trust that is at any particular time a lifetime benefit trust with respect to a taxpayer and the estate of a deceased individual if
- immediately before the death of the deceased individual, the taxpayer:
- (i) was both a spouse or common-law partner of the deceased individual and mentally infirm; or
- (ii) was both a child or grandchild of the deceased individual and dependent of the deceased individual for support because of mental infirmity; and
- the trust is, at the particular time, a personal trust under which:
- (i) no person other than the taxpayer may receive or otherwise obtain the use of, during the taxpayerfs lifetime, any of the income or capital of the trust; and
- (ii) the trustees:
- (A) are empowered to pay amounts from the trust to the taxpayer; and
- (B) are required in determining whether to pay, or not to pay, an amount to the taxpayer to consider the needs of the taxpayer including, without limiting the generality of the foregoing, the comfort, care and maintenance of the taxpayer.
Hepatitis C trust This is an inter vivos trust under paragraph 81(1)(g.3) of the Act and is a government funded trust. - established under;
- (A) the 1986-1990 Hepatitis C Settlement Agreement; or
- (B) the Pre-1986/Post-1990 Hepatitis C Settlement Agreement;
- As long as no contribution to the trust, other than contributions provided for under the Agreement, is made before the end of a tax year of the trust, the trustfs income is generally exempt from income tax for that tax year.
Bare Trust The term "bare trust" is not defined in the Act. A "trust" for the purposes of the Act is defined in subsection 104(1) of the Act. That subsection provides that, if the arrangement is one in which the trust can reasonably be considered to act as agent for all the beneficiaries under the trust with respect to all dealings with all of the trust's property and the trust is not a trust described in paragraphs (a) to (e.1) of the definition of "trust" in subsection 108(1) of the Act, the arrangement is deemed not to be a trust for the purposes of the Act. These arrangements are generally known as "bare trusts".
A trustee can reasonably be considered to act as agent for a beneficiary when the trustee has no significant powers or responsibilities, the trustee can take no action without instructions from that beneficiary and the trustee's only function is to hold legal title to the property. In order for the trustee to be considered as the agent for all the beneficiaries of a trust, it would generally be necessary for the trust to consult and take instructions from each and every beneficiary with respect to all dealings with all of the trust property.
Indian Residential School This is an inter vivos trust under paragraph 81(1)(g.3) of the Act and is a government funded trust.
- established under the Indian Residential Schools Settlement Agreement entered into by her Majesty in right of Canada on May 8, 2006.
- As long as no contribution to the trust, other than contributions provided for under the Agreement, is made before the end of a tax year of the trust, the trustfs income is generally exempt from income tax for that tax year.
Land Settlement Trust The term "land settlement trust" is not defined in the Act. Generally, a land settlement trust is a trust created to hold the settlement funds paid for a First Nation's land claim.
Safe Drinking Water trust The Safe Drinking Water for First Nations Act was created to enable the development of federal regulations to support First Nations' access to clean, reliable drinking water and effective treatment of wastewater. Beginning in 2023, the new trust type 340 - Safe Drinking Water Trust is available.
Other (specify)
Use the keyword Specify-Type to indicate the type of personal trust. This information is required for the Quebec TP-646 trust return.
Use the keyword Subsection to indicate the subsection that applies to the non-profit organization trust. This information is required in order to enter the correct code number for the type of trust on the T3 Trust Income Tax and Information Return.
If this keyword is not entered, DT Max T3 will default to code 180.
The following options are applicable for the keyword Subsection.
Subsection 149(5)
Subsection 149(1)(l)
Use the keyword Reorganization to indicate whether the trust is involved in a reorganization. If the trust is involved in a reorganization, it must provide the date of the reorganization and submit either the T1169 or an election document to the CRA.
This information is required for efile purposes only.
Use the keyword Reorg-Date to indicate the date of the reorganization.
This information is required for efile purposes only.
Use the keyword Filing-Extension to indicate whether the trust has been approved for a filing extension.
This information is required for efile purposes only.
Use the keyword Spousal-Election to indicate whether the trust is electing not to have the conditions of a spousal trust apply.
This information is required for efile purposes only.
Use the keyword QDT-JointElect to indicate whether the trust is jointly electing with one or more beneficiaries under the trust to be a qualified disability trust for the year. This keyword is required to produce the form T3QDT.
Use the keyword Business-Num to enter the business number of the non-profit organization.
Use the keyword Residence to enter the province or territory of residence of the trust at the end of the taxation year.
The following options are applicable for the keyword Residence.
In the keyword First-Nation, select the applicable option from the choices available.
The following options are applicable for the keyword First-Nation.
Use the keyword Electing-Trust to indicate whether the trust is an electing trust as defined in section 94.
Paragraph 94(3)(f) provides additional rules that generally have the effect, on an elective basis, of excluding from the taxable base of the trust for Canadian tax purposes any income relating to property that has been contributed to the trust otherwise than by a resident contributor to the trust or, if there is a current resident beneficiary under the trust, a connected contributor to the trust (i.e., property that is part of the non-resident portion of the trust). In effect, this is accomplished by deeming there to be a second trust in addition to the electing trust. The additional trust is deemed to hold the property that forms the trust's non-resident portion. This has the effect of removing from the taxable base of the trust any income derived from that property.
In order for an election by a trust to be an electing trust to be valid, it must be filed with the Minister of National Revenue on or before the trust's filing-due date for its first taxation year in which it holds property that is at a time in the year part of its non-resident portion and throughout which it is deemed by subsection 94(3) to be resident in Canada. Once made, the election is valid for that taxation year and for all subsequent taxation years.
Use the keyword Year-Election to indicate the year the trust elected to have paragraph 94(3)(f) apply. This information is required for question 1 on the T3 trust income tax and information return.
Use the keyword Canadian-Res to indicate whether the trust was a resident of Canada throughout the taxation year.
The following options are applicable for the keyword Canadian-Res.
Use the keyword Country.r to identify the trust's other country of residence during the taxation year. Make a selection from the alphabetical listing.
Use the keyword Estate to indicate whether or not the trust is an estate.
Use the keyword QC-SpecifiedTrust to indicate whether the trust is a specified trust.
A specified trust is an inter vivos trust that is not resident in Canada at any time during the year and is not tax-exempt.
This information is required for the TP-646 trust return. If the trust is a specified trust, the appropriate box will be ticked on the first page of the Quebec trust income tax return. This keyword must be entered in order to generate other keywords relating to specified immovables within the Partnership or the Business (rental) group.
Use the keyword GrandFathered to indicate whether the inter vivos trust is grandfathered.
A grandfathered inter vivos trust is one established before June 18, 1971, which:
- was resident in Canada without interruption from June 18, 1971, until the end of the taxation year;
- did not carry on any active business in the taxation year;
- did not receive any property as a gift since June 18, 1971;
- after June 18, 1971, did not incur any debt or obligation to pay an amount to, or guaranteed by, any person with whom any beneficiary of the trust was not dealing at arm's length;
- did not receive any property after December 17, 1999, as a transfer from another inter vivos trust, where:
. the other trust is not grandfathered; and . there is no change in the beneficial ownership of the property on its transfer; and
- for taxation years beginning agter 2002, did not receive any contributions after June 22, 2000.
The following options are applicable for the keyword GrandFathered.
Use the keyword Blind-Trust to indicate whether this is a blind trust or not. A blind trust can allocate to its beneficiaries capital and non-capital losses. These losses will be reported in brackets in the appropriate box on the T3 slip for the beneficiary.
The following options are applicable for the keyword Blind-Trust.
Use the keyword Revocable to indicate whether this is a revocable trust or not. A revocable trust can allocate to its beneficiaries capital and non-capital losses. These losses will be reported in brackets in the appropriate box on the T3 slip for the beneficiary.
The following options are applicable for the keyword Revocable.
Use the keyword Date.t to enter the date of death or the date the trust was created.
The following options are applicable for the keyword Date.t.
Date of death
Date trust created
Use the keyword SIN to enter the social insurance number of the deceased person.
This is the Quebec source deductions and employer contributions account number of the trust.
NEQ Quebec enterprise number (NEQ) of the trust
Use the keyword Trust-Info to enter required information for the trust return.
The following options are applicable for the keyword Trust-Info.
First return
Prior year filed
Amended return
Payment of income to beneficiaries (Fed Q2/QC Q20)
Payment of income not required by will (Fed Q2/QC Q20)
Assets (not cash) distributed to beneficiary(Fed Q3/QC Q21)
Change to the beneficiaries of the trust (Fed Q4)
Lifetime beneficiary of the trust died in the year (Fed Q5)
Non-arm's length debt incurred (Fed Q6/QC Q17)
Capital/income ownership changed (Fed Q7/QC Q14)
Trust holds shares in a private corporation (Fed Q8/QC32)
Received property as contrib. since June 00 (Fed Q9)
Public trust required to post info S204.1 (Fed Q10/QC Q22)
International Financial Reporting Standards used (Fed Q11)
Trust subject to a loss restriction event (Fed Q12/QC Q29)
Total assets per financial statements (QC Q12a)
Total liabilities per financial statements (QC Q12b)
Terms amended since June 1971 (QC Q15)
Non-arm's length inter vivos transaction (QC Q17 only)
Received property as a revocable or blind trust (QC Q18)
Section 1054 or section 1055.1 election (QC Q23)
Multiple trusts/single settlor (QC Q24)
Designated beneficiary of a designated trust (QC Q25)
Qualifying transfer based on the rollover rule (QC Q28)
Trust ceased to be considered a QDT (QC Q27.1)
Holds public corp shares, elects to defer tax pmt(QC Q30)
Preferred beneficiary election
Trust not continuously residing in Quebec
Trust received or disposed of virtual currency (QC Q31)
Asset value under par.150(1.2)(b) less than $50,001(F. Q13)
Required to hold funds for purposes of activity (Fed Q14)
Use the keyword Date.info to indicate the date for the required information.
Use the keyword Document to specify whether the trust document or will is attached or included with the T1 personal income tax return.
The following options are applicable for the keyword Document.
Attached
With T3 APP
With T1
Use the keyword Amount.info to enter the amount from the financial statement.
Use the keyword Transferor.info to enter the name of the transferor. This information will be entered in part 4 of the Quebec Schedule C.
Use the keyword Trust-Info.rca to enter required information for the trust return.
The following options are applicable for the keyword Trust-Info.rca.
Use the keyword Date.info to indicate the date for the required information.
Use the keyword Document to specify whether the trust document or will is attached or included with the T1 personal income tax return.
The following options are applicable for the keyword Document.
Attached
With T3 APP
With T1
Use the keyword Amount.info to enter the amount from the financial statement.
Use the keyword Transferor.info to enter the name of the transferor. This information will be entered in part 4 of the Quebec Schedule C.
Use the keyword Election to indicate the type of election made by the trust.
The following options are applicable for the keyword Election.
Designation under subs. 104(13.1)/s. 663.1 A trust may make an election under which all or part of the trust income paid or payable in the year to all the beneficiaries is not allocated to the beneficiaries. The trust does this by designating an amount federally under subsection 104(13.1) and for Quebec under section 663.1 of the taxation act. The amounts designated under these provisions will be reported as income on the trust return rather than in the hands of the beneficiaries.
Designation under subs. 104(13.2)/s. 663.2 A trust may make an election under which all or part of the trust income paid or payable in the year to all the beneficiaries is not allocated to the beneficiaries. The trust does this by designating an amount federally under subsection 104(13.2) and for Quebec under section 663.2 of the taxation act. The amounts designated under these provisions will reduce the amount of taxable capital gains of the beneficiary and will be included in the income reported by the trust.
Subs. 164(6) election (capital losses)/s. 1054 The legal representative of the trust can elect to transfer estate losses to the final return of the deceased person. The estate losses which can be transferred are those that occurred when the trust disposed of capital property resulting in more capital losses than capital gains. This election only applies to the first taxation year of a deceased person's estate. The amount entered cannot be greater than the capital loss calculated for this return.
The elected amount will be entered on line 19 of federal schedule 1 as the gross capital loss to be transferred to the deceased's final tax return. The Quebec form TP-1012.B requires the net capital loss to be transferred, therefore 50% of the elected amount will be entered on this schedule.
If you are making an election under 164(6) for the graduated rate estate, attach the following to the T3 return: - a letter indicating that an election under 164(6) is being made and provide the following information:
- the amount of the capital loss elected to be a capital loss of the deceased person;
- a schedule with details of the capital loss.
Subs. 164(6) election (terminal loss) /s. 1054 The legal representative of the trust can elect to transfer estate losses to the final return of the deceased person. The estate losses which can be transferred are all or any portion of the terminal loss (not exceeding the total of the graduated rate estate's non-capital loss and farm loss before the election) resulting from the disposition of all of the depreciable property of a prescribed class of the graduated rate estate.
The elected amount will be entered on the Quebec form TP-1012.B.
If you are making an election under 164(6) for the graduated rate estate, attach the following to the T3 return: - a letter indicating that an election under 164(6) is being made and providing the following information:
- the amount of the terminal loss elected to be deductible in computing the income of the deceased person
- a schedule with the details of the terminal loss and a statement of the amounts that would have been the non-capital loss and the farm loss of the estate for its first tax year had the election not been made
Subs. 159(6.1)/s. 1031.1 to defer tax on deemed sales If the trust has excess income tax payable further to a deemed disposition, the trust may elect under ss. 159(6.1) of the income tax to defer payment . This election allows the trust to pay the income tax arising from the deemed realization in up to ten equal consecutive annual instalments. The first instalment must be paid no later than the payment deadline which is the 90th day following the end of the taxation year in which the election is made. Interest, calculated at the prescribed rate, must be added to each instalment. By choosing this election, DtMax will automatically fill a T2223 form and TP-1031.1 for Quebec with details.
Repayment of salary or wages (Qc) If the amount reimbursed of salaries or wages exceeds the amount of employment income and retiring allowance included on line 61, the succession sustains a loss from an office or employment and may be unable to recover the income taxes paid. In this case, an election can be made to have the loss deemed to be sustained by the individual in the year of death, rather than by the succession. The elected amount will be entered on form TP-1012.B, Carry-Back of a Deduction or Tax Credit.
Repayment of certain government benefits (Qc) If the income of the succession is insufficient to cover the reimbursement of certain government benefits, the succession may be unable to recover the income tax previously paid by the individual. In the case of QPP, CPP, QPIP and EI benefits an election can be made to have the amount deemed to be reimbursed by the individual immediately before death, instead of by the succession. The elected amount will be entered on form TP-1012.B, Carry-Back of a Deduction or Tax Credit.
Use the keyword Terminal-Loss to indicate the losses claimed under section 1054 that is attributed to terminal losses. This amount will be entered on the Quebec form TP-1012.B. An amended income tax return may be required to be filed with the documents listed in section 1054R1 of the Regulation respecting the Taxation Act. Use [Alt-J] to enter different values for other jurisdictions.
Use the keyword IncLessDeemDisp to enter the taxable income calculated whithout taking into account the income arising from deemed dispositions.
In order to calculate this income, copy the keywords from production into a plan, and make necessary adjustments. Calculate the return, note the taxable income and return to the production version and use this keyword to enter the calculated taxable income from the plan.
This amount will be entered on line 82 of form T1055 and on line 2 of the Quebec form TP-1031.1. Use [Alt-J] to enter different values for other jurisdictions.
Use the keyword Adj-TaxPayable to enter the income tax that would be payable by the trust if its taxable income excluded any deemed dispositions.
In order to calculate this income, copy the keywords from production into a plan, and make necessary adjustments. Calculate the return, note the total taxes payable return to the production version and use this keyword to enter the calculated total taxes payable from the plan.
This amount will be entered on line 83 of form T1055 and on line 3 of the Quebec form TP-1031.1. Use [Alt-J] to enter different values for other jurisdictions.
Use the keyword No-Instalments to indicate the amount of payments that will be required to repay the elected amount of deferred tax. DtMax will compute equal annual instalments based on this information. Use [Alt-J] to enter different values for other jurisdictions.
The trust will have to pay interest, compounded daily at the prescribed rate in effect at the time the election is made. The first instalment must be paid no later than the payment deadline which is the 90th day following the end of the taxattion year in which the election is made. Therefore, the first instalment does not attract any interest.
The following options are applicable for the keyword Interest.e.
Use [Alt-J] to enter different values for other jurisdictions.
Use the keyword Rep-Address.e to enter the representative's address, if applicable. This information will be entered on schedule TP-1031.1.
Use the keyworkd NPO-Deduction to indicate whether the trust may claim in calculating its taxable income a $2,000 deduction granted to trusts created with respect to non-profit organization's property.
Use the keyword Amount.npo to enter the amount of deduction to claim in regards to non-profit organization's property. This amount will be entered on the federal trust return, line 54 and on the Quebec trust return on line 94.
Use the keyword File-BenOwnership to indicate the jurisdiction to which the beneficial ownership information should be reported to. Based on the jurisdiction, DT Max T3 will automatically generate the applicable keywords in the affected groups: Trustee, Settlor, Beneficiary and Control-Entity.
Revenu Québec will collect the beneficial ownership information as additional information on the TP-646, Trust income tax return, if it is applicable.
The Federal Budget 2018 announced the requirement that certain trusts provide additional beneficial ownership information on an annual basis. The legislation for this measure is pending. The new reporting and filing requirements will be administered by the CRA once the legislation has received Royal Assent.
The following options are applicable for the keyword File-BenOwnership.
Federal and Quebec
Federal
Quebec
Do not print
Use the keyword First-TimeReport to indicate whether this is the trust's first time providing the CRA the beneficial ownership information.
If this is the first time, the trust must identify all the reportable entities of the trust. A reportable entity is a trustee, a settlor, a beneficiary or a controlling person.
Use the keyword Change-In-BenOwn to indicate whether there has been a change in the beneficial ownership information and to answer the question on Schedule 15, Part A. Previously reported entities will be carried forward by the CRA to the current tax year unless the information is modified in Part B.
Use the keyword Unknown-Entities to provide the details of the terms of the trust that extends the class of beneficiaries to unknown entities.
Provide relevant information regarding any beneficiaries that cannot be listed by name because they are unknown at the time of filing the trust return.
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