Trust Tax Services

Trust Tax Services

A trust is a document people set up for estate planning purposes. A trust can give you control over who gets what and when, how they get it, and why.

There are two general types of trusts, testamentary trusts (generally created on and as result of the death of the person) and inter vivos (living) trusts. People set up trusts for different reasons.

When you set up a trust you must file a T3 return if income from the trust property is subject to tax, and in the tax year, the trust:

  • Has tax payable
  • Is requested to file
  • is resident in Canada and has either disposed of, or is deemed to have disposed of, a capital property or has a taxable capital gain (for example, a principal residence, or shares)
  • is a non-resident throughout the year, and has a taxable capital gain or has disposed of taxable Canadian property
  • is a deemed resident trust
  • holds property that is subject to subsection 75(2) of the Act
  • has provided a benefit of more than $100 to a beneficiary for upkeep, maintenance, or taxes for property maintained for the beneficiary’s use
  • receives from the trust property any income, gain, or profit that is allocated to one or more beneficiaries, and the trust has:
  • total income from all sources of more than $500
  • income of more than $100 allocated to any single beneficiary
  • made a distribution of capital to one or more beneficiaries
  • allocated any portion of the income to a non-resident beneficiary

(Source: Canada.ca)

We help you by answering the why, when, where and how of filing your trust tax returns.

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