T3 - Statement of Trust Income

The program subtracts amounts in boxes 31, 35, 46 and 47 from the amount in box 26 and includes the difference on line 130 of the federal return.

The amount in box 47 is taken into account in Form RRSP/PRPP/RPP TRANS, Designation of Amounts Transferred to an RRSP/PRPP and/or an RPP (Jump Code: RRSP/PRPP/RPP TRANS).

Where the taxpayer has received foreign trust income, indicate the source country. To do this, use the "Country name" search box. Then, enter the foreign income and taxes on the appropriate fields according to the kind of income involved (foreign business income or non-business income). These figures are posted to the T2209 C form so that the software may calculate both the federal and provincial foreign tax credits.

You can enter income from a foreign source in a foreign currency, in which case you must also enter the exchange rate so the program can convert the amount to Canadian dollars. The equivalent amount in Canadian dollars is then shown in the Your share column. You can check the US exchange rate check box if the transaction took place in the United States. You may also choose to enter foreign investment income in Canadian dollars. In that case, do not enter anything in the exchange rate cell.

Enter the taxpayer's share of the T3 slip if it is less than 100%. Enter the percentage with a decimal point when the rate is, for example, 33.33 %. If the spouse's percentage is entered, these percentages will update the spouse's return if the returns are coupled.

Boxes 39 and 51 of the T3 slip do not appear on the screen. It is not necessary to enter the federal dividend tax credit since the program calculates it and enters it on line 425 of Schedule 1.

Box 42 represents a disbursement or a return of capital from the trust. If the amount in box 42 is positive, the adjusted cost base of the fund must be reduced, whereas if it is negative, the adjustment cost base of the fund must be increased. The Section “History of the adjustments to the adjusted cost base of the investment fund – box 42” allows you to prepare the history of the adjustments to the ACB retrospectively. This history will be carried over to future versions of Personal Taxprep.