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IncomeSource

Use the keyword IncomeSource to enter the type of income earned in the trust.

The following options are applicable for the keyword IncomeSource.

  • Pension income
  • Foreign pension income
  • Dividends
  • Other investment income
  • Foreign investment income
  • Other income

Secondary keywordDescription.inc

Use the keyword Description.inc to enter a brief description of the source of the income.

Secondary keywordForeign-Inc

Use the keyword Foreign-Inc to enter the type and amount of foreign income. Once data is entered using Foreign-Inc, DT Max will calculate the following deductions and credits:
  • deduction pursuant to subsection 20(11)
  • federal foreign tax credits (T2209) - one per country
  • provincial foreign tax credit (T2036)
  • Quebec foreign tax credit for foreign non business income (TP-772)

In order for the calculations to be performed properly, you must enter the type of foreign income in Foreign-Inc and the country of reference in Country.for.

The foreign tax credits determined for purposes of forms T2209, T2036 and TP-772 are calculated on a country-by-country basis. You can override the federal non business foreign tax credit with the keyword Foreign-Cr-OV. This override will be carried through to the provincial foreign tax credit calculation (T2036 or TP-772 for Quebec).

The following options are applicable for the keyword Foreign-Inc.

  • Interest from foreign sources
  • Dividends from foreign corporations
  • Other foreign investment income (specify)
  • Foreign retirement arrangement
  • Other foreign pension

Secondary keywordCountry.for

Use the keyword Country.for to select the country of origin of the foreign income.

DT Max will group the foreign income on a country-by-country basis and will calculate the foreign tax credits and deductions for each country.

Secondary keywordTax-Paid

Use the keyword Tax-Paid to enter the total amount of foreign tax paid.

Form T2209 will only be produced if foreign tax paid has been entered.

Secondary keywordTax-Treaty

Use the keyword Tax-Treaty to enter amounts to be deducted from net income for tax purposes due to a tax treaty with Canada.

The total treaty-exempt income will be deducted from net income for tax purposes on the tax returns filed.

Secondary keywordExchange-Rate

Use the keyword Exchange-Rate to enter the exchange rate at which income is to be converted to Canadian dollars. If you entered the amount in Canadian dollars, no entry is required here.

Click here for the CRA's records of average exchange rates.

Secondary keywordFor-Deduct-OV

Use the keyword For-Deduct-OV to override the automatic calculation of the deduction claimed under subsection 20(11).

This type of entry must be personalized, i.e. the 20(11) deduction is calculated on an individual basis. A separate 20(11) deduction will be calculated for each investment income, for each different country. Therefore, if an override is required, it must be entered within the group where it is to apply.

DT Max will enter this amount as other deduction from total income on line 40 of the federal return and on line 70 of the Quebec return.

The following options are applicable for the keyword For-Deduct-OV.

  • Deduction under subsection 20(11)

Secondary keywordAnnuities  ALT-J 

Use the keyword Annuities to enter the annuity payments received for the relevant option.

If the annuities are allocated and designated, schedule 7 will automatically be generated.

The following options are applicable for the keyword Annuities.

  • Superannuation/pension plan
  • Life annuity - plan for services while NR
  • Annuity of a minor
Use [Alt-J] to enter different values for other jurisdictions.

Secondary keywordLump-sum-Pmt  ALT-J 

In the keyword Lump-sum-Pmt, choose the relevant option and enter the lump-sum payments received.

The following options are applicable for the keyword Lump-sum-Pmt.

  • Registered pension plan (RPP)
  • Lump sum - plan for services while NR
  • Deferred profit-sharing plan (DPSP)
  • DPSP accrued to 31/12/71 election under s.40
Use [Alt-J] to enter different values for other jurisdictions.

Secondary keywordDividends  ALT-J 

Use the keyword Dividends to enter the actual amount of dividends received. Also indicate the source.

The calculation of the gross-up amount of actual dividends from a taxable Canadian corporation retained by the trust will be done on Schedule 8. Federally, the gross-up rate for eligible dividends received in the year is 45% and 25% for ordinary dividends.

The gross-up does not apply to taxable Canadian dividends received by the trust if they are allocated to a non resident beneficiary.

DT Max will enter the dividend amounts on federal schedule 8.

The following options are applicable for the keyword Dividends.

  • Actual amount of ordinary dividends
  • This is the actual amount of dividends other than eligible dividends that the trust received from taxable Canadian corporations. This amount appears in box 23 of a T3 slip and in box 10 of a T5 slip issued to the trust. The amount of actual dividends will be entered on line 1 of Schedule 8. The amount retained by the trust will be grossed-up by 25%.
  • Actual amount of eligible dividends
  • This is the actual amount of eligible dividends that the trust received from taxable Canadian corporations. This amount appears on the T3 slip box 49, T5 slip box 24 or the Quebec equivalent RL-16 box C1 or RL-3 box A1 which are issued to the trust. The amount of actual eligible dividends will be entered on line 2 of Schedule 8 and on line 300 of the Quebec Schedule B. The amount retained by the trust will be grossed-up by 45%.
  • Dividends from rental arrangement
  • The dividends received from a rental arrangement will be entered as other investment income on line 10 of schedule 8 and on line 307 of Quebec schedule B.
  • Other dividends (specify)
  • Other dividends will be entered as other investment income on line 10 of Schedule 8 and on line 307 of Quebec Schedule B.
  • Non-taxable dividends
  • Non-taxable dividends received by the trust will not be included in the trust's income. The amount of non-taxable dividends allocated to beneficiaries will be entered on the investment income and expense supplementary schedule to be attached to the return.
Use [Alt-J] to enter different values for other jurisdictions.

Secondary keywordInterest  ALT-J 

Use the keyword Interest to select the type and amount of interest income earned by the trust.

The following options are applicable for the keyword Interest.

  • Bond, trust company, bank interest
  • Other deposit (specify)
  • Mortgage, note, securities interest
  • Interest on tax refund
Use [Alt-J] to enter different values for other jurisdictions.

Secondary keywordOther-Investment  ALT-J 

Use the keyword Other-Investment to specify the type and amount of other investment income earned by the trust. Use [Alt-J] to enter different values for other jurisdictions.

Secondary keywordDeath-Benefit  ALT-J 

Use the keyword Death-Benefit to enter the death benefits received under the Canada Pension Plan (CPP) or the Quebec Pension Plan (QPP).

The following options are applicable for the keyword Death-Benefit.

  • CPP/QPP death benefits
Use [Alt-J] to enter different values for other jurisdictions.

Keyword in subgroupOth-Death-Benefit

A death benefit is an amount for a deceased person's employment service. This amount is shown in box 106 of the T4A slip. If a death benefit is to be taxed in the trust according to the provisions of the trust document, you may be able to exclude up to $10,000 of the amount from the trust's income.

If no one other than a trust received a death benefit, report the amount that is more than $10,000. Even if the trust did not receive all of the death benefits in one year, the total tax-free amount for all years cannot exceed $10,000.

Secondary keyword in subgroupEligible-Deduct

A testamentary trust may receive a payment as a result of the employee's death to recognize the employee's service in an office or employment. This payment may qualify as a death benefit, and the trust or the beneficiary may be able to exclude up to $10,000 of the amount from income.

Use the keyword Eligible-Deduct to indicate the amount of deduction allocated to the beneficiaries or the trust. If an amount is to be applied against the income taxed in the trust, only the taxable amount will be reported on line 19 of the federal return and on line 61 of the Quebec trust return.

The following options are applicable for the keyword Eligible-Deduct.

Secondary keywordRetiring-Allow  ALT-J 

Use the keyword Retiring-Allow to enter the eligible and non eligible retiring allowances received per box 26 or 27 of the T4A slip.

This amount is reported as other income on line 19 of the federal income tax return and on line 61 of the Quebec income tax return.

The following options are applicable for the keyword Retiring-Allow.

  • Eligible retiring allowance
  • Non-eligible retiring allowance
Use [Alt-J] to enter different values for other jurisdictions.

Secondary keywordRESP-AIP

Use the keyword RESP-AIP to enter all accumulated income payments (AIP's) received from registered education savings plans (RESP's).

This amount appears in box 40 of all T4A slips issued for the year the payments were received.

Secondary keywordOth-Prop-Inc  ALT-J 

Use Oth-Prop-Inc to enter other income to be included in the calculation of the cumulative net investment loss (CNIL).

This amount is reported as other income on line 19 of the federal income tax return and on line 61 of the Quebec income tax return.

Use [Alt-J] to enter different values for other jurisdictions.

Secondary keywordOther-Inc  ALT-J 

Use Other-Inc to enter other income not to be included in the calculation of the cumulative net investment loss (CNIL).

This amount is reported as other income on line 19 of the federal income tax return and on line 61 of the Quebec income tax return.

Use [Alt-J] to enter different values for other jurisdictions.

Secondary keywordECP-Disp

Use ECP-Disp to enter the amount of deemed taxable capital gain on the disposition of eligible capital property.

This amount will not be added to the net income but will be used on line 308 of schedule 3 to calculate the eligible taxable capital gains.

Secondary keywordArtist-Annuity

Use the keyword Artist-Annuity

Secondary keywordProv-Employ

Use the keyword Prov-Employ to indicate the province of employment if different from the trust's province of residence.

If the trust was residing in Quebec and earned employment income outside of Quebec, DT Max will transfer to Quebec 40% of the federal income tax withheld at source, deduct it on line 86 of the federal trust return and add it to line 152 of the Québec trust return.

The following options are applicable for the keyword Prov-Employ.

  • Newfoundland and Labrador
  • Prince Edward Island
  • Nova Scotia
  • New Brunswick
  • Quebec
  • Ontario
  • Manitoba
  • Saskatchewan
  • Alberta
  • British Columbia
  • Yukon
  • Northwest Territories
  • Nunavut

Secondary keywordFIT

Use the keyword FIT to enter the federal income tax deducted at source.

DT Max will enter this amount on line 86 of the federal tax return.

Secondary keywordPIT

Use the keyword PIT to enter the Quebec income tax deducted at source.

DT Max will enter this amount on line 152 of the Quebec tax return.

Secondary keywordFootnote.s

Use Footnote.s to indicate the explanatory footnote that appears on the T-slip or the Relevé.

The following options are applicable for the keyword Footnote.s.

  • Special tax deducted at source (RL-2)
  • Special tax that is deducted at source on amounts paid under an eligible income-averaging annuity contract for artists.
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