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About
We are pleased to provide you with Taxprep for Trusts 2024 v.3.0. This version covers taxation years ending between January 1, 2023, and December 31, 2024, inclusive.
Note that client files have an extension reflecting the taxation year end of the trust: .323 for a taxation year ending in 2023 and .324 for a taxation year ending in 2024.
The rates applicable to the 2024 taxation year are those known as of March 1, 2024. 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
The threshold for mandatory electronic filing of information returns for a calendar year has been lowered from 50 to 5 for information returns filed after December 31, 2023. For the latest information about the penalty for not filing information returns over the Internet, go to canada.ca/mandatory-electronic-filing.
Important dates for Internet transmission
The CRA has been accepting electronic transmissions of T3 and NR4 slips since January 8, 2024. Revenu Québec has been accepting transmission of RL-16 slips since November 2023.
The CRA has been offering electronic filing of T3 returns through T3 EFILE since March 2, 2022. For updating purposes, the CRA closed the transmission service on January 19, 2024, and has been accepting the EFILING of T3 returns for the tax years 2023 and 2024 since February 19, 2024. For more information on this matter, please see the Federal – T3 EFILE article.
Opening and Rolling Forward Files
Client files with the .323 extension
Client files with the .323 extension that have been saved with Taxprep for Trusts 2023 can be opened with Taxprep for Trusts 2024 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 .322 extension
Client files with the .322 extension that have been saved with the 2022 or 2023 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 2022 version, the roll forward is only possible if the taxation year in the source client file ends in 2022.
Taxprep for Trusts 2024 also allows you to open, without having been rolled forward first, a client file with the .322 extension. However, the file will only be read-only accessible. To open a client file with the .322 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, 2024. 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 2024 allows for the roll forward of client files saved with version 2022.5.5 of ProFile (.22R extension).
Version 3.0 Content
MR-14.A, Notice Before Distribution of the Property of a Succession (Jump Code: QMR-14A)
Following an update of the form, line 97 has been added to report post-death income from an FHSA.
T3 Schedule 15, Beneficial Ownership Information of a Trust (Jump Code: 15)
The following improvements have been made to Schedule 15:
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When a beneficiary is a non-resident, the beneficiary’s Canadian tax identification number will be transferred to the corresponding entries on Schedule 15. The foreign tax identification number will only be transferred if no Canadian tax identification number is entered on the Beneficiary Information form (Jump Code: BENEF).
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A diagnostic has been added as a reminder to answer the following question to make Schedule 15 applicable: Is the trust a cemetery care trust or an eligible funeral arrangement trust?
TP-646, Trust Income Tax Return (Jump Code: Q)
The following improvements have been made to the TP-646 return:
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A checkbox has been added to section 5, Additional information about the trust, to indicate whether information from Schedule 15 should be transferred over or not. If the trust is exempt from the requirements to provide additional information, you may check this box to prevent information from being transferred from Schedule 15.
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Lines 2a, Last name of trustee or liquidator of the succession (if the trustee or liquidator is an individual), 2b, First name, and 2c, Name of trustee or liquidator of the succession (if the trustee or liquidator is not an individual), are now calculated based on whether the trustee is an individual or not.
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A diagnostic has been added as a reminder to override the identification number when it is transferred from Schedule 15. An override is required to enter the identification number of any entity other than beneficiaries. The correct Québec identification number will be carried over for beneficiaries who have been entered on the BENEF form (Jump Code: BENEF).
T3PEMJ, Prince Edward Island Tax (Multiples Jurisdictions) (Jump Code : MJ PE)
Several changes have been made to this form for a taxation year ending in 2024. For more information, please refer to the release note for Form T3PE, Prince Edward Island Tax, in the Version 2.0 Content section.
Version 2.0 Content
T3PE, Prince Edward Island Tax (Jump Code: T3PE)
In its budget tabled on May 25, 2023, the Government of Prince Edward Island announced the addition of two tax brackets and the abolition of the surtax for the 2024 and subsequent taxation years. Therefore, the tax brackets for Graduated Rate Estates (GRE) and Qualifying Disability Trusts (QDT) will be the following:
|
Tax brackets |
Rates |
|
$32,656 or less |
9.65% |
|
More than $32,656 but not more than $64,313 |
13.63% |
|
More than $64,313 but not more than $105,000 |
16.65% |
|
More than $105,000 but not more than $140,000 |
18% |
|
More than $140,000 |
18.75% |
As for the tax rate for trusts other than GRE and QDT, it has been increased from 16.7% to 18.75%. In addition, the credit rate for donations of $200 or less has been adjusted to 9.65% and the rate for donations over $200 has been adjusted to 18.75%.
Version 2.0 – Corrected Calculations
The following problem has been corrected in this version:
Federal
Version 1.0 Content
Government requirements
Since January 1, 2024, payments or remittances to the Receiver General for Canada should be made as an electronic payment if the amount is more than $10,000. Payers may face a penalty unless they cannot reasonably remit or pay the amount electronically. For more information, go to canada.ca/payments. Revenu Québec has introduced identical government requirements.
Deleted Forms
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TP-646.G, Additional Information – Trust Resident in Québec That Owns a Specified Immovable (Jump Code: QG)
Modifications
Trust Identification and Other Information (Jump Code: ID)
The Additional information for roll forward subsection has been added to the Taxation year information section of the Identification form. This new section allows the next year-end to be entered if the next tax year is shortened. Therefore, this year-end will be used when rolling forward the file. Before rolling forward your file, make sure you are using a version of Taxprep for trusts that supports this year-end.
Preparer Profiles – EFILE Tab
The EFILE tab has been added to the preparer profile and can be consulted at any time. The EFILE Information subsection that was in the Profile tab has been transferred to the new EFILE tab to facilitate navigation and data entry in the preparer profile. The boxes for the electronic transmission of the T3D, T3GR, T3P, T3RI and T1061 returns have also been added.
EFILE, Electronic Filing (Jump Code: EFILE)
New restrictions have been added that exclude certain trusts from the electronic filing service. Trusts that declared bankruptcy during the year, as well as trusts that filed Form T2223, Election Under Subsection 159(6.1) of the Income Tax Act by a Trust to Defer Payment of Income Tax (Jump Code: 2223), are now ineligible for EFILE. Diagnostics have also been added to guide the tax preparer.
However, it is now possible for a trust filing an income tax return under section 216 of the Income Tax Act to transmit its return electronically via EFILE. A mandatory question has been added to section Questions used for EFILE only of the Trust Identification and Other Information form (Jump Code: ID) to determine the type of election made by the trust.
T3, Trust Income Tax and Other Information (Jump Code: J)
Questions 13 and 14, related to the new Schedule 15, have been added to section Answer the following required questions. Line 68, Yukon mining carbon price rebate, has also been added.
T3 Schedule 15, Beneficial Ownership Information of a Trust (Jump Code: 15)
In the 2018 Budget, the government announced new reporting requirements for trusts. On December 15, 2022, Bill C-32, which includes the legislation that supports this measure, received Royal Assent. As a result, Schedule 15 was added to fulfill the new reporting requirements.
The following modifications have been made to the Beneficiary Information form (Jump Code: BENEF) to assist with completing Schedule 15:
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Fields have been added for the beneficiary classification.
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A field has been added to exclude the beneficiary from disclosure on Schedule 15 if the beneficiary’s information is subject to solicitor-client privilege.
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A field has been added to indicate if another type of reportable entity is applicable to the beneficiary and transfer the beneficiary’s information to the appropriate section on Schedule 15.
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A field has been added to indicate that the beneficiary ceased to be a reportable entity during the year. The beneficiary will be deleted when rolling forward to next year.
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A field has been added to indicate whether the beneficiary information was transferred to the CRA in a prior year.
You can refer to FAQ FT32023-003 for more information on Schedule 15 and how to file it.
T3APP, Application for Trust Account Number (Jump Code: T3APP)
Several changes have been made to this form, including:
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The line Your language of correspondence has been removed from the form.
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Step 3, Address, as been removed. You must now indicate the address in Step 2, Primary trustee contact information, under option 1 if the trustee is an individual or under option 2 if the trustee is a non-individual.
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The line The mailing address is the same as the address in Step 2 is now displayed on screen only, in Step 3 – Mailing address.
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In Step 4, Additional trust information, you must answer the new question Select the type of trust from the drop-down menu and indicate the Date the trust was created. This date is updated with the answer to the custom question Date trust was created in section Type of trust of Form ID (Jump Code: ID). It is now possible, by selecting the appropriate box, to indicate that you are registering a non-resident trust solely for the purpose of filing certain special elections or returns.
If you have completed this form with a previous version of the program, it is recommended that you revise the content before filing it.
T3-DD, Direct Deposit Request for T3 (Jump Code: T3DD)
The list of banking institution numbers has been updated and several changes have been made. If a withdrawn code has been entered in box 351 of the form, it will be deleted. In all circumstances, it is advisable to validate the banking information before filing this form.
T3F, Investments Prescribed to be Qualified Information Return (Jump Code: T3F)
Due to a building refit spanning multiple years, the Registered Plans Directorate’s mailing address has been temporarily changed. Please use the following address to file your T3F return and for all correspondence until further notice:
Registered Plans Directorate
Canada Revenue Agency
2215 Gladwin Crescent
Ottawa ON K1B 4K9
T3D, 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 Trusts (Jump Code: T3GR);
T3P, Employees' Pension Plan Income Tax Return (Jump Code: T3P);
T3RI, Registered Investment Income Tax Return (Jump Code: T3RI); and
T1061, Canadian Amateur Athlete Trust Group Information Return (Jump Code: T1061)
Several changes have been made to these forms, including:
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You must now indicate whether the trustee is an individual (option 1) or a non-individual (option 2) and provide only the corresponding information in the Trustee information section.
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The custom question Has the name of the trustee changed since the last time the CRA was notified? has been added to the Trustee identification section, on screen only, as the answer to this question is mandatory for electronic transmission only.
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The question Did the trust also file a related T3RET, T3 Trust Income Tax and Information Return? has been added, excluding the T1061 return, to the Information about the trust section. If the answer to this question is Yes, you will need to provide the related trust account number.
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Line 102, Refund code, has been added.
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For the T3RI return only, columns c) to g) have been added to the table in Area A of Schedule 2.
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For the T1061 return only, beneficial ownership questions have been added to determine if you are required to complete a Schedule 15, Beneficial Ownership Information of a Trust (Jump Code: 15).
If you completed one of these forms with a previous version of the program, we recommend that you review the content before filing them.
T3MB, Manitoba Tax (Jump Code: T3MB)
Line 14, Manitoba recovery tax, has been removed from the form.
T3QDT-WS, Recovery Tax Worksheet (Jump Code: T3QDTWS)
Line 32, Gross-up amount of dividends attributable to taxable income later distributed to an electing beneficiary, has been added to Part 2, Provincial or territorial recovery tax calculation. As a result, subsequent lines have been renumbered. In addition, line 40, Provincial or territorial tax previously paid attributable to taxable income later distributed, will no longer be calculated if the province is Alberta.
T2000, Calculation of tax on agreements to acquire shares (Jump Code: 2000)
It is now possible to electronically transmit the T2000 return at the same time as the T3D, T3GR and T3P returns. Note that if the return is applicable, it will be electronically transmitted automatically.
T2125, Statement of Business or Professional Activities (Jump Code: 2125)
The custom lines Electricity, heating and water and Telephone and utilities have been added to break down the amount of line 9220, Utilities.
If you completed this form with a previous version of the program and an amount was entered on line 9220, this amount will be transferred to the custom line Telephone and utilities.
TP-80, Business or Professional Income and Expenses (Jump Code: Q80)
Several changes have been made to this form, including:
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Line 122, Work in progress at the beginning of the fiscal period, has been removed. The amount entered on line 3N, WIP at the start of the year, of Form T2125 will be added to line 110, Sales, commissions or professional fees, of Form TP-80.
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Line 239, Electricity, heating and water, has been added.
TP-646, Trust Income Tax Return (Jump Code: Q)
Several changes have been made to this form, including:
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The line 2b.1, Date of birth of trustee or liquidator of the succession (if the trustee or liquidator is an individual), has been added.
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The line 13b, The date the trust became resident in Canada, and line 13c, The date the trust stopped being resident in Canada, have been added.
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A table has been added after question 32 to indicate details if a personal trust holds shares in one or more private corporations.
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Part 5 (previously Part 6), Additional information about the trust, is now required for all trusts with a year-end after December 30, 2023, except where certain exemptions apply. Please refer to section 4.5 of the guide for more information. As a result, the information required in Part 5 will be calculated based on information entered on Schedule 15 of the federal return.
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The information about the person who completed the return has been moved to Part 6 of the form. The province has been modified to a drop-down list and is no longer calculated based on the T3 RET form, but from the preparer profile instead.
TP-1086.R.23.12, Costs Incurred for Work on an Immovable (Jump Code: 1086R2312)
Following the update of the form, section 1, Information on the payer, has been modified. Furthermore, the Province field has been added to section 2, address of the immovable.
Technical Information
Technical Changes
Annual EFILE e-filing update
The program now offers electronic filing for T3D, T3P, T3GR, T3RI, T1061 and T2000 returns using EFILE. You will need an EFILE number and password to transmit these returns. Please note that it is no longer possible to transmit these returns using the Internet File Transfer service (XML), as these transmissions are no longer supported by the CRA.
To this end, several general changes have been made to Taxprep for Trusts to support EFILE:
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The EFILE form (Jump Code: EFILE) now supports the transmission choices made in the firm's profile for new returns. The choices made in the EFILE section of the firm's profile will therefore be used for all returns.
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The EFILE INFO form (Jump Code: EFILE INFO) now shows status, dates and potential EFILE errors related to the electronic transmission of new returns.
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Finally, the filters EFILE Eligible - T3D/T3P/T3GR/T3RI/T1061 and T2000 have been added to the filters in the Client Manager view. These display all client files in which a T3 return is eligible for EFILE.
Please note that the CRA tax filing service will be available starting February 19, 2024.
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
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