T3 Trust - Quebec (TP-646) tax guide index by line numbers

TP-646.G - Guide to Filing the Trust Income Tax Return (version 2024-11)

1 Introduction

1.1 Important information

1.2 Definitions

2 Principal changes

2.1 New obligation for payments over $10,000

2.2 New form to pay an income tax balance online

2.3 Additional information about the trust

2.4 New type of trust: employee ownership trust

2.5 New: Schedule A.1 - Election for Certain Trusts Regarding Taxable Capital Gains

2.6 New form for reporting cryptoassets

2.7 Changes to the calculation of alternative minimum tax

2.8 Abolition of the additional 30% capital cost allowance (CCA)

2.9 The indigenous child and family services settlement

3 General information

3.1 Taxation year of a trust

3.2 Obligation to file the Trust Income Tax Return (form TP-646-V)

3.3 Filing requirements

3.4 Reassessments

3.5 Registers and supporting documents

3.6 Certificate authorizing the distribution of property

3.7 Types of trusts

3.8 List of province, territory and country codes

List of province and territory codes

List of country codes

4 Rights and obligations of a trust as a taxpayer

4.1 Penalties

4.2 Voluntary disclosure

4.3 Mandatory or preventive disclosure

4.4 Mandatary disclosure of nominee contracts

4.5 Obligation to register a trust operating a commercial enterprise

4.6 Protection of confidential information

4.7 Communication of confidential information to a person designated by the trust

5 Special rules

5.1 Rollover rule

5.2 Income attribution rule

5.3 Losses on the disposition of property involving an affiliated person

5.4 Restrictions applicable to certain investment trusts with respect to stapled securities

5.5 Trusts subject to a loss restriction event

5.6 Thin capitalization rules

5.7 Non-deductible losses in the calculation of the adjusted taxable income for alternative minimum tax purposes

5.8 Use of a trust for cross-border surplus stripping

6 Instructions for completing the return

6.1 Information about the trust

Lines 1a to 1b
Lines 2a to 3g
Line 4
Lines 5a and 5b
Lines 6 and 6a
Lines 7 to 7c
Lines 8 to 8b
Lines 9 to 32

6.2 Net income and taxable income

Lines 50, 51 and 52 - Investment income
Line 53 - Taxable capital gains
Line 54 - Pension benefits
Lines 55a and 55 - Business income (or loss)
Lines 56a to 57 - Farm or fishing income (or loss)
Lines 58a and 58 Rental income (or loss)
Line 59 Amount withdrawn from a net income stabilization account
Line 60 - Income (or losses) relating to a deemed sale applicable to certain trusts
Line 61 - Other income
Line 64 - Carrying charges and interest expenses
Lines 65 and 66 - Fees paid to the trustee
Line 69 - Allowable business investment loss
Line 70 - Other deductions in the calculation of net income
Line 74 - Upkeep and maintenance expenses or taxes for property used by a beneficiary
Line 75 - Value of other taxable benefits
Line 81 - Total amounts allocated to beneficiaries
Line 83 - Gross-up of dividends not designated
Line 84 - Adjustment of investment expenses
Line 86 - Carry-over of the adjustment of investment expenses
Line 90 - Net income
Line 91 - Non-capital losses from other years
Line 92 - Net capital losses from other years
Line 93a - Adjustment for the purpose of calculating the CNIL
Line 94 - Other deductions in the calculation of taxable income
Line 98 - Other adjustment of investment expenses
Line 98.1 - Adjustment of deductions (all or part of the deduction claimed for a trust that is a certified forest producer)
Line 99 - Taxable income

6.3 Income tax payable

Lines 101 to 103 - Graduated rate estate (GRE) or qualified disability trust (QDT)
Lines 105 and 107 - Trust other than a mutual fund trust, a QDT or a GRE
Lines 110 to 115 - Mutual fund trust
Line 120 - Income tax on taxable income
Line 121 - Income tax adjustment
Line 123 - Tax credit for donations and gifts
Line 124 - Foreign tax credit
Line 125 - Dividend tax credit
Line 128 - Tax credit claimed by the trust as a designated beneficiary of a designated trust
Line 130 - Additional income tax resulting from the alternative minimum tax (AMT)
Line 132 - Additional income tax resulting from the AMT carried forward to 2024
Line 134 - Deduction for logging tax
Line 136 - Special tax respecting certain refundable tax credits, a registered education savings plan (RESP) or an income-averaging annuity for artists
Line 137 - Income tax on the taxable distributions amount
Line 138 - Income tax payable on specified immovables

6.4 Refund claimed or balance due

Line 150.1 - Recovery tax
Line 151 - Income tax paid in instalments
Line 152 - Québec income tax withheld at source
Line 153 - Tax credits for scientific research and experimental development (R&D)
Line 154 - Tax credit for an on-the-job training period
Line 156 - Other credits and other adjustments to income tax payable
Line 160 - Balance due

6.5 Additional information about the trust

6.6 Information about the person who completed the return

6.7 Certification

7 Instructions for completing the schedules

7.1 Schedule A - Taxable Capital Gains and Designated Net Taxable Capital Gains

Line 200 - Qualified farm or fishing property
Line 201 - Qualified small business corporation shares
Line 202 - Capital gains (or losses) on qualified property
Line 203 - Capital gains (or losses) on shares involved in a qualifying business transfer
Line 204 - Other shares, mutual fund units and interest in an insurance segregated fund trust
Line 205 - Bonds, debt obligations, promissory notes and other similar securities
Line 206 - Immovables and depreciable property
Line 207 - Personal-use property
Line 208 - Precious property
Line 209 - Non-qualified investments (under an RRSP, a RRIF, an RDSP, a TFSA or an FHSA) and capital gains to which the 100% rate applies further to the disposition of an interest in a partnership
Line 210 - Adjusted amount of capital gains resulting from the donation of certain property
Line 211 - Capital losses for which the election referred to in section 1054 of the Taxation Act is made
Line 213b - Capital gains (or losses) on other property
Line 213c - Capital gains (or losses) on other property as shown on the RL-16 slips
Line 216 - Net amount of capital gains (or losses) from a deemed sale applicable to certain trusts
Line 217 - Cryptoasset capital gains (or losses)
Line 219 - Capital loss from a reduction in a eligible business investment loss
Line 221 - Reserve for the previous year
Line 223 - Reserve for the current year
Line 230 - Taxable capital gains (or net capital loss)
Line 240 to 250 - Designated net taxable capital gains

7.2 Schedule A.1 - Election for Certain Trusts Regarding Taxable Capital Gains

7.3 Schedule B - Investment Income, Gross-Up of Dividends Not Designated and Adjustment of Investment Expenses

Lines 300 to 303 - Actual amount of dividends from taxable Canadian corporations
Lines 305 to 309 - Other investment income from Canadian sources
Lines 310 to 313 - Foreign investment income
Lines 315 to 319 - Carrying charges and interest expenses
Line 326 - Amount of the gross-up of dividends not designated
Line 328 - Dividend tax credit
Line 332 - Fees paid to the trustee
Line 335 - Other investment expenses
Line 343 - Taxable capital gains that do not qualify for a deduction
Line 345 - Other investment income

7.4 Schedule C - Summary of Allocations and Designations

Line 400 - Designated net taxable capital gains
Line 401 - Single pension payment
Lines 402a and 402b - Actual amount of eligible and ordinary dividends
Line 403 - Retirement pension giving entitlement to a tax credit
Line 406 - Other income
Line 411 - Allowable capital losses - Insurance segregated fund trust, or revocable or blind trust
Line 412 - Net taxable capital gains giving entitlement to a deduction
Lines 413 and 414 - Taxable amount of eligible and ordinary dividends and dividend tax credit
Line 417 - Cost base adjustment of capital interest
Line 418 - Donations allocated by a religious organization
Line 428 - Split income
Line 429 - Loss sustained on transferred or loaned property - Revocable or blind trusts

7.5 Schedule D - Carry-Back of a Loss

7.6 Schedule E - Income Tax on the Taxable Distributions Amount and Calculation of Eligible Dividends to Be Designated

7.7 Schedule F - Income Tax Payable by a Specified Trust for a Specified Immovable

Line 604 - Portion of the immovable used by a beneficiary of the trust or a co-owner for personal purposes
Lines 611 to 620 - Portion of the expenses not attributable to the rental (column B)
Line 663 - Capital cost allowance (CCA)