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About
We are pleased to provide you with the first version of Taxprep for Trusts 2021. This version covers taxation years ending between January 1, 2020, and December 31, 2021, inclusive.
Note that client files have an extension reflecting the taxation year end of the trust: .320 for a taxation year ending in 2020 and .321 for a taxation year ending in 2021.
The rates applicable to the 2021 taxation year are those known as of January 20, 2021. Any changes resulting from subsequent federal, provincial and territorial announcements will be integrated into future updates of the program.
You can view the applicable rates by accessing the Table of Values Used in the Return found in the program (Jump Code: RATES FED-PROV).
Converting Preparer Profiles
Once your preparer profiles from last year are converted to the current year, it is important to verify that the options defined with respect to the returns of your clients and to the electronic filing of data (EFILE) still correspond to your situation for the current season.
For more information on rolling forward client files, please consult the Help.
Electronic Filing
Government requirements
At the federal level and in Québec, any filer filing more than 50 slips or RL slips of a same type must file the data electronically by Internet. Below that threshold, paper filing is accepted.
Taxprep for Trusts will generate a diagnostic prompting you to use EFILE as soon as you prepare more than 50 slips or RL slips.
Important dates for Internet transmission
The CRA has been accepting electronic transmissions of T3 and NR4 slips and T3 returns since January 11, 2021. Revenu Québec has been accepting transmission of RL-16 slips since November 9, 2020.
Opening and Rolling Forward Files
Client files with the .320 extension
Client files with the .320 extension that have been saved with Taxprep for Trusts Classic 2020 can be opened with Taxprep for Trusts 2021 without having been rolled forward first. When opening that file, a dialog box displays and asks you if you want to recalculate the file with the current version. By answering yes, you can simply continue working in the file. If you answer no, the data in the file will be locked. It can be unlocked at a later date using the Properties dialog box (File/Properties command).
Client files with the .319 extension
Client files with the .319 extension that have been saved with the 2019 or 2020 version of the program must be rolled forward by using the Roll Forward command in the File menu before you can access them from this version. Remember that in cases where client files were saved with the 2019 version, the roll forward is only possible if the taxation year in the source client file ends in 2019.
Taxprep for Trusts 2021 also allows you to open, without having been rolled forward first, a client file with the .319 extension. However, the file will only be read-only accessible. To open a client file with the .319 extension, access the Open dialog box (File/Open command), and select the directory where the client file has been saved using the Look in: drop-down list. Then, enter “*.*” in the “File name:” box and press Enter to display the list of client files. You can then select and open the client file you want to access.
Taxation year after roll forward
The taxation year after a roll forward cannot end after December 31, 2021. If needed, it will be shortened so as to correspond to the period covered by this version.
Attached notes
The attached notes are rolled forward, except if this option is cleared in the roll forward data options.
Rolling forward client files prepared with ProFile
Taxprep for Trusts 2021 allows for the roll forward of client files saved with version 2020.0 of ProFile (.19R extension).
Version 1.0 Content
Modifications and additions
E-Signature
The E-signature functionality was added to forms that can be electronically signed in Taxprep for Trusts. For the complete list of forms that can be electronically signed, consult the article Digital Signature – Supported Forms.
Preparer profile
The option Do not allow e-mail address entry in any of the forms in the return has been added to Section B. Options – Returns in the PROFILE tab of the preparer profile. When this option is selected, a diagnostic will display in the return to prevent you from entering or editing information in the e-mail address fields. This option is set to No by default. Note that when converting the preparer profile, this option selection will be retained. The roll forward for the e-mail address is not impacted by this addition. Therefore, any e-mail address entered will be rolled forward.
Schedule A, Taxable Capital Gains and Designated Net Taxable Capital Gains (Jump Code: QA)
A table has been added to Part 1 of the form to enter the gain or loss realized on disposition of virtual currency transactions.
To enter dispositions of virtual currency transactions giving rise to a capital gain or loss, select the box Virtual currency transactions (Québec only) in subsection Bonds, debentures, promissory notes, and other similar properties in Schedule 1 (Jump Code: 1). Data will then be transferred to the correct section of Schedule A. You must also enter the number of units and the method of disposition in subsection Bonds, debentures, promissory notes, and other similar properties in Schedule 1.
T3 Slip, Statement of Trust Income Allocations and Designations (Jump Code: T3Slip)
In previous versions of the program, the jump code for the T3 slip was T3S. This jump code was changed to T3Slip following the addition of Form T3S, Supplementary Unemployment Benefit Plan Income Tax Return in the program.
T1134, Information Return Relating to Controlled and Not-Controlled Foreign Affiliates (Jump Code: 1134)
The Canada Revenue Agency (CRA) published a new version of Form T1134, which must be used for taxation years starting after 2020. Therefore, the previous version of the form must be used for T1134 forms prepared for taxation years starting prior to 2021.
Note that only the previous version of Form T1134 will be available in version 2021.1.0 of Taxprep for Trusts. To that end, a note has been added at the top of the form when the taxation year is starting in 2021. The new version of the form will be integrated in a future version of Taxprep for Trusts.
T776, Capital Cost Allowance (Jump Code: 776 CCA)
T2042, Capital Cost Allowance (Jump Code: 2042 CCA)
T2125, Capital Cost Allowance (Jump Code: 2125 CCA)
The new CCA class 56 has been added for properties acquired after March 1, 2020, and available for use before 2028, that are zero-emission automotive equipment and vehicles that currently do not benefit from the accelerated rate provided by classes 54 and 55. Like these two CCA classes, class 56 benefits from a temporary enhanced first-year CCA rate of 100% for eligible property available for use before 2023.
T3 APP, Application for Trust Account Number (Jump Code: T3APP)
As result of an update, Form T3APP underwent a significant number of changes. For example, the Trust Information section has been revamped and some of the information it contained has been moved to three new sections, i.e. Step 2 – Primary trustee contact information, Step 3 – Address and Step 4 – Mailing address. In addition, this form now allows you to request an authorization for a representative at the same time as an application for an account number. To do so, complete the new Section Step 5 – Representative contact information of Form T3APP instead of completing Form AUT-01 (Jump Code: AUT01).
If you completed this form using a prior version of Taxprep for Trusts, we strongly suggest that you review the entire form before submitting it.
T3BC, British Colombia Tax (Jump Code: T3BC)
As result of an update, Form T3BC underwent a significant number of changes. First, the Graduated Rate Estate (GRE) or Qualified Disability Trusts (QDT) and Trust other than GRE and QDT subsections have been added to the Step 2 – Donations and gifts tax credit section. An additional row has been added for SITPs and FAPHs to calculate the tax credit for donation. This allows for donations qualifying for a 16.8% credit to be presented separately as they are not eligible for the 20.5% tax credit. Second, lines 27, Total British Colombia political contributions, and 28, Allowable political contribution tax credit, and the corresponding table have been deleted as this credit has been withdrawn. As a result of these changes, several lines of the form have been renumbered.
If you completed this form using a prior version of Taxprep for Trusts, we strongly suggest that you review the entire form before submitting it.
TP-653, Deemed Sale Applicable to Certain Trusts (Jump Code: Q653)
A table has been added to Part 3 of the form to enter the gain or loss realized on disposition of virtual currency transactions.
To enter dispositions of virtual currency transactions giving rise to a capital gain or loss, select the box Virtual currency transactions (Québec only) in subsection Bonds, debentures, promissory notes, and other similar securities of Form T1055, (Jump Code: 1055). Data will then be transferred to the correct section of Form TP-653. You must also enter the name of the virtual currency and the number of units in subsection Bonds, debentures, promissory notes, and other similar securities of Form T1055.
TP-750, Income Tax Payable by a Trust Resident in Québec That Carries On a Business in Canada, Outside Québec, or by a Trust Resident in Canada, Outside Québec, That Carries On a Business in Québec (Jump Code: Q750)
As a result of the update of the form, line 20, Dividend tax credit in Section 2, Trust resident in Québec that carries on a business in Canada, outside Québec, has been moved and renumbered 26.1. Therefore, the percentage of business carried on in Québec is no longer applied to this credit when calculating the Québec income tax payable. In addition, line 40, Dividend tax credit in Section 3, Trust resident in Canada, outside Québec that carries on a business in Québec, has been deleted.
Forms added to the program
- T3D, Income Tax Return for Deferred Profit Sharing Plan (DPSP) or Revoked DPSP (Jump Code: T3D)
- T3GR, Group Income Tax and Information Return for RRSP, RRIF,RESP, or RDSP Trust (Jump Code: T3GR)
- T3GRWS, Worksheet for Part XI.1 Tax on Non-Qualified Property of an RRSP and RRIF, or RESP Trust (Jump Code: T3GRWS)
- T3S, Supplementary Unemployment Benefit Plan Income Tax Return (Jump Code: T3S)
- T1061, Canadian Amateur Athlete Trust Group Information Return (Jump Code: 1061)
- T2000, Calculation of tax on agreements to acquire shares (Jump Code: 2000)
Technical Information
Technical Changes
Addition of Tax Return information in the Open dialog box
The following information can now be reviewed in the Open dialog box when a client file is selected:
- Account number;
- Return Status;
- Taxation Year End;
- Eligibility for the electronic transmission T3 Slips and T3.
Digital signature
PDF files can now be signed using the CCH iFirm Portal application. To do so, you must be subscribed to the CCH iFirmPortal application and to the Digital signature feature. Then, in the Options and Settings dialog box, go to the CCH iFirm/General section and select the Enable digital signature check box.
For further details on enabling the Digital signature feature, consult the Set Up the Digital Signature Feature article.
Once the documents are published to the CCH iFirm Portal, the Publish to CCH iFirm Portal dialog box displays. Click the 
button to display the list of documents for which you want to use the Digital signature feature. From this list, you will be able to invite corporations to access the portal, select documents requiring digital signature, create an envelope containing the PDF files to sign. You will also be able to view the following information:
- The name of the envelope;
- The e-mail template sent to the taxpayer;
- The name of the signatory or signatories who will receive the e-mail.
Once the documents are published to the CCH iFirm Portal, the signatories will receive an e-mail advising them that a document is available on the portal. They will then be able to digitally sign the document.
For further details, consult the Send Documents to Be Signed article.
In addition, an introduction video is available below:
Print to PDF – View the content of an attached file
You can now view the content of a PDF file when it is attached to a return and that return is printed to PDF. To do so, when printing to PDF, make sure to select a print format in which you can print Form All PDF files attached to the return - PDF printing only (Jump Code: PDF). A bookmark with the name of the attached file will be created in the Adobe viewer and its content will be displayed at the end of the return.
Where to Find Help
If you have any questions regarding the installation or use of the program, there are several options for getting help. Access the Professional Centre or the Knowledge Base for tips and useful information on how to use the program. If you are in the program and need help, press F1 to get help on a specific topic.
Taxprep e-Bulletin
For your convenience, you are automatically subscribed to the Taxprep e-Bulletin, a free e-mail service that ensures you receive up-to-date information about the latest version of Taxprep for Trusts. If you want to review your subscription to Taxprep e-Bulletin, visit https://support.wolterskluwer.ca/en/ and, in the Newsletter tab, select Subscription Manager.
You can also send an e mail to cservice@wolterskluwer.com to indicate the products for which you want to receive general information or information on our CCH software (Personal Taxprep, Corporate Taxprep, Taxprep for Trusts, Taxprep Forms or CCH Accountants’ Suite).
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