The Canada Revenue Agency (CRA) recently provided its view on the due date of a trust information and income tax return (T3) in the year a trust is wound up. Where a trust is wound up by distributing all of its property to its beneficiaries, does the T3 have to be filed within 90 days of the date of wind up date or within 90 days of the calendar year-end? Depending….
Trust Return Due Date on Wind-up Continue Reading »
Canada Revenue Agency, Executors, Tax IssuesThe Canada Revenue Agency (CRA) answered several questions regarding a scenario in which a trust claims a capital gains reserve. When a trust claims a capital gains reserve, and the amount of the reserve is included in income in the subsequent year and flows through the trust to a beneficiary, does the gain retain all of its attributes? The reserve amount which the trust claims is included in calculating its capital….
Trust Claiming a Capital Gain Reserve Continue Reading »
Canada Revenue Agency, Estate Planning, Executors, Tax IssuesAll to often it is the elderly and disadvantaged who are taken advantage of in fraudulent investment schemes. The Canada Revenue Agency recently released some general information that applies to taxpayers who participated in what reasonably appeared to be a legitimate investment for income tax purposes. Generally speaking, an amount paid to a taxpayer that is a return on investment, such as interest, must be included in the taxpayer’s income….
Tax implications of losses incurred in a fraudulent investment scheme Continue Reading »
Canada Revenue Agency, Executors, Tax IssuesThe Department of Finance recently released draft legislation for consultation. The draft rules serve to implement measures announced in the 2018 Federal Budget including rules affecting trust income tax reporting. For trust returns that are required to be filed for the 2021 and subsequent taxation years, Budget 2018 proposed that certain trusts provide additional beneficial ownership information on an annual basis. As a result, these trusts will be required to….
Trust reporting requirements Continue Reading »
Canada Revenue Agency, Executors, Tax IssuesA graduated rate estate (GRE) is an estate that arises as the result of the death of a person on or after December 31, 2015, and no more than 36 months after the person’s death. The estate at that time must be a testamentary trust. The GRE designation brings with key benefits such as access to the lower marginal tax rates and simpler and more flexible donation rules. Perhaps more important in….
Graduated rate estate – don’t lose it! Continue Reading »
Canada Revenue Agency, Estate Administration, Estate Planning, Executors, Tax Issues, Uncategorized, Wills[caption id="attachment_6317" align="alignnone" width="300"] Muskoka Chairs[/caption] With mobility on the rise, it is expected that a person leaving Canada will have to visit the rules on tax-free savings accounts (TFSA) and Canadian tax residency. Executors may have to consider the TFSA rules if a deceased’s will calls for the transfer of a TFSA account to a non-resident will beneficiary. If a Canadian tax resident has a TFSA and leaves Canada,….
TFSA and the Non-resident Continue Reading »
Canada Revenue Agency, Estate Planning, Executors, Tax Issues