Lines 27, 28 and 29 - Total income allocations and designations to beneficiaries ▲
Lines 27, 28 and 29 - Total income allocations and designations to beneficiaries ▲
Generally, a trust receives income and pays it to the beneficiaries according to the terms of a will or trust document. We call this allocating income (defined on page 20). In most cases, you enter the income on the T3 return in Step 2, then enter it on line 29 in Step 3, so the trust does not pay tax on the income. The beneficiary then has to report the income on their return. For more information, see "Schedule 9 - Income Allocations and Designations to Beneficiaries"on page 54.
In some cases, income that is allocated to a beneficiary may be taxed on the trust's return, instead of on the beneficiary's return. In other cases, income that is usually reported on the trust's T3 return may instead be reported on the beneficiary's T1 return. For more information, see "Exceptions and limits to income allocations"on page 56.
Note
Income allocated to a beneficiary that is not deductible
by the trust (other than a designated amount included in
line 28) should not be included on line 27, or reported on
Schedule 9.
On line 27, enter the amounts paid or payable to beneficiaries in the current year, including any amount designated by a preferred beneficiary election. On line 28, subtract the amounts claimed under subsections 104(13.1) and 104(13.2). Enter the result on line 29.
For more information, see "Income to be taxed in the trust" on page 57.
Tax tip
Line 29 has to equal the amount entered on line 928 of
Schedule 9.
