Line 1 - Taxable capital gains
Calculate the taxable capital gains and allowable capital losses of the trust on Schedule 1.
If the amount on line 24 of Schedule 1 is a taxable capital gain, enter it on line 1.
If the amount on line 24 of Schedule 1 is a net capital loss, do not enter it on line 1. You cannot deduct the net capital loss from other income of the trust in the year, or allocate it to the beneficiaries (except as described under "Exceptions and limits to income allocations" on page 47). You can only use it to reduce the trust's taxable capital gains of other years. For more information, see "Line 34 - Net capital losses of other years" on page 31.
Tax tip
In the first tax year of a GRE, the legal representative can
elect to apply any net capital loss against income on the
deceased's final return. For more information, see
"Graduated rate estate elections (losses)" on page 34.
If a trust sells capital property that is qualified farm or fishing property, or qualified small business corporation shares and realizes a gain, the gain may qualify for the capital gains deduction to be claimed by a beneficiary of the trust. For more information, see "Line 921 - Taxable capital gains" on page 51.
For more information, see:
-
Guide T4037, Capital Gains
-
Guide T4002, Self-employed Business, Professional, Commission, Farming, and Fishing Income
|
|
|