Preparing Your Trust Tax Returns, 2020 Edition (For The 2019 Tax Year)

Preparing Your Trust Tax Returns is updated annually. The analysis provided is practical and in-depth, and addresses substantive income tax issues relating to trusts and beneficiaries that are relevant to reporting requirements.

Features & Coverage:

• More detailed topics and coverage than any other guide available
• An easy-to-understand format, which helps you find what you need more quickly
• Numerous references to CRA documents, legislation, and cases for further consultation and to ensure you have consulted all relevant material
• Online format includes context-sensitive links from Taxprep software to the commentary
• Online and DVD formats feature time-saving search functionality

Recognized as the industry standard by tax professionals across Canada, the Preparing Your Tax Returns series provides total coverage and a thorough examination of all rules and interpretations related to income tax. Loaded with how-to advice, tax planning tips, and quick answers to all of your challenging questions, it's indispensable during your T3 season.

Table of Contents:

• How to Use Preparing Your Trust Tax Returns
• List of Forms and Other Documents Reproduced

Chapter 1 -Introduction

Trust Basics

• Basic Types of Trusts
• Determining Whether a Trust Exists
• Parties to a Trust
• Purpose Trusts and Charitable Purpose Trusts

Chapter 2 - Filing a Trust Income Tax Return and Related Matters

• Filing Requirements
• Payment of Tax
• Penalties
• Assessments, Objections and Appeals
• Taxpayer Relief Provisions
• Reportable Transactions
• Other Considerations

Chapter 3 - Types of Trusts

• Testamentary Trusts
• Inter Vivos Trusts

Chapter 4 - Total Trust Income

• Capital Gains and Losses
• Pension Income
• Dividends from Taxable Canadian Corporations
• Foreign Investment Income
• Other Investment Income
• Business, Farming, Fishing, and Rental Income
• NISA Fund No.2
• Income Resulting from the Deemed Disposition Rules (The 21-Year Rule)
• Other Income

Chapter 5 - Net Income

• Deduction of the Trust's Investment Expenses for the Year
• Income Payable (or Paid or Allocated) to Beneficiaries and Subsection 105(2) Expenses
• Payable rule for trusts with beneficiaries under the age of 21
• Split income of Minor Beneficiary
• Preferred Beneficiary Election
• Gross-Up of Retained Dividends or Those Not Designated
• Adjustment of Investment Expenses (Quebec only)

Chapter 6 -Taxable Income

• Ordinary Losses of Other Years (Including Farming and Fishing Losses)
• Net Capital Losses of Other Years
• Carryback of Current Year Losses to Previous Years
• Capital Gains Exemption for Spousal or Common-Law Partner Trust
• Non-profit organizations
• Treaty-Exempt Income

Chapter 7 - Tax and Credits

• Federal Tax Payable (Schedule 11)
• Provincial or Territorial Tax or Federal Surtax Payable
• Part X11.2 Tax (Schedule 10)
• Other (Refundable) Credits
• Part XIII and XIII.2 Withholding Tax for Distributions to Non-Resident Beneficiaries
• Taxes under Other Parts in Respect of Certain Deferred Income Trusts and Other Trusts

Chapter 8 -Selected Tax Issues

• Estates and Pipeline Strategies
• Residence of Trusts
• Trusts Deemed Resident in Canada
• Taxation Year of a Trust
• Deemed Dispositions of Trust Property
• Distribution of Trust Property to Beneficiaries
• The Attribution Rules
• "Beneficially Interested"
• The Reversionary/Revocable Trust Attribution Rules
• Tax on Split Income of Minor Children
• Qualifying Dispositions to Trusts
• Clearance Certificate Prior to Distribution of Property Section 116 Clearance Certificate in Respect of an Interest in a Trust

Appendix 1 - Forms
Appendix 2 - Folios, Bulletins and Circulars
Appendix 3 - CRA and Quebec Guides
Topical Index