Trust-Name

Use the keyword Trust-Name to enter the legal name of the trust, which will appear on the trust return. This is the name by which the trust will be identified.

Acct-Number

Use the keyword Acct-Number to enter the federal account number for the trust.

This account number will be printed on the trust's federal return.

ID-Number

Use the keyword ID-Number to enter the trust's Quebec identification number.

This number will be printed on the trust's Quebec return.

Begin-Date

Use the keyword Begin-Date to enter a different date on which the taxation period is to begin.

Year-End

Use the keyword Year-End to enter the taxation year-end of the trust.

Language

Use the keyword Language to choose the language in which you want the final copies of the return and all DT Max correspondence to be printed.

The following options are applicable for the keyword Language.

English

French

Estate-of

Use the keyword Estate-of to indicate whether it should be printed on the T3 slips followed by the trust name in the case of a testamentary trust.

DT Max will automatically default to printing "Estate-of" on the T3 slips unless otherwise indicated through the option in preferences or with this keyword.

Note that when used, this keyword takes precedence over the user's defaults.

Trust

Use the keyword Trust to indicate the type of trust that was created.

A testamentary trust is a trust or estate generally started on the date a person dies. All testamentary trusts are personal trusts. The terms of the trust are established by the will or by court order in relation to the deceased individual's estate under provincial dependant's relief or support law. Generally, this type of trust does not include a trust created by a person other than a deceased individual, or a trust created after November 12, 1981, if any property was contributed to it other than by a deceased individual.

An inter vivos trust is a trust that is not a testamentary trust.

The following options are applicable for the keyword Trust.

Testamentary trust

Inter vivos trust

Trust-Type

Use the keyword Trust-Type to select the specific type of trust that was created.

The following options are applicable for the keyword Trust-Type.

Options relating to various types of trusts

Spouse or common-law partner

Post-1971, the spouse or common-law partner trust includes both a testamentary trust created after 1971 and an inter vivos trust created after June 17, 1971, for which the living beneficiary spouse or common-law partner is entitled to receive all the income that may arise during the lifetime of the spouse or common-law partner, and that spouse or common-law partner is the only person who can receive, or get the use of, any income or capital of the trust during their lifetime.

Pre-1972, the spouse or common-law partner trust includes both a testamentary trust created before 1972 and an inter vivos trust created before June 18, 1971, for which the beneficiary spouse was entitled to receive all the income during the spouse's lifetime, and no other person received, or got the use of, any income or capital of the trust. These conditions must be met for the period beginning on the day the trust was created, up to the earliest of the following dates:

- the day the beneficiary spouse dies; - January 1, 1993; or - the day on which the definition of a pre-1972 spousal trust is applied.

Trust for a minor

Unit trust

A unit trust is an inter vivos trust for which the interest of each beneficiary can be described at any time by referring to units of the trust. The trust must reside in Canada, and its only undertaking is the investing of its funds in property (other than real property, or an interest in real property), and/or acquiring, maintaining, improving, leasing, or managing real property or an interest in real property that is capital property of the trust. The trust also has to satisfy the other conditions of the Act, as outlined in subsection 108(2).

Mutual fund trust

A mutual fund trust is a unit trust that resides in Canada. It also has to comply with the other conditions of the Act, as outlined in section 132 and the conditions prescribed by Regulation 4801.

Communal organization

With respect to communal organizations, an inter vivos trust is deemed to exist when a congregation:

- has members who live and work together; - does not permit its members to own property in their own right; - requires that its members devote their working lives to the congregation's activities; and - carries on one or more businesses directly, or manages or controls the businesses through a business agency, such as a corporation or trust, to support or sustain its members or the members of another congregation.

Religious organization

Employee benefit plan

The employee benefit plan generally refers to any arrangement under which an employer makes contributions to a custodian, and under which one or more payments will be made to, or for the benefit of, employees, former employees, or persons related to them.

Registered segregated fund

Considered to be an inter vivos trust, the registered segregated fund is a related segregated fund of a life insurer for life insurance policies. The fund's property and income are considered to be the property and income of the trust, with the life insurer as the trustee.

Partially registered segregated fund

Non-registered segregated fund

Non-profit organization

The non-profit organization is an organization (for example, club, society, or association) that is usually organized and operated exclusively for social welfare, civic improvement, pleasure, recreation, or any other purpose except profit. The organization will generally be exempt from tax if no part of its income is payable to, or available for, the personal benefit of a proprietor, member, or shareholder.

Employee trust

The employee trust is an inter vivos trust. Generally, it is an arrangement established after 1979, under which an employer makes payments to a trustee in trust for the sole benefit of the employees. The trustee has to elect to qualify the arrangement as an employee trust on the trust's first return. The employer can deduct contributions to the plan only if the trust has made this election and filed it no later than 90 days after the end of its first taxation year. To maintain its employee trust status, each year the trust has to allocate to its beneficiaries all non-business income for that year, and employer contributions made in the year. Business income cannot be allocated, and is taxed in the trust.

Personal trust

A personal trust is either:

- a testamentary trust; or - an inter vivos trust in which no beneficial interest was acquired for consideration payable either to the trust, or to a person who contributed to the trust.

The person or related persons who create an inter vivos trust may acquire all the interests in it without the trust losing its status as a personal trust. Unit trusts created after 1999 are not personal trusts.

Joint spousal or common-law partner

The joint spousal or common-law partner trust is an inter vivos trust created after 1999 by a settlor who was 65 years of age or older at the time the trust was created, for which the settlor and the settlor's spouse or common-law partner are entitled to receive all the income that may arise from the trust before the later of their deaths, and are the only persons who can receive, or get the use of, any income or capital of the trust before the later of their deaths.

Alter ego trust

The alter ego trust is an inter vivos trust created after 1999 by a settlor who was 65 years of age or older at the time the trust was created, for which the settlor is entitled to receive all the income that may arise during his or her lifetime, and is the only person who can receive, or get the use of, any income or capital of the trust during the settlor's lifetime. A trust will not be considered to be an alter ego trust if you file an election with the trust's return for its first taxation year asking not to have this provision of the Act apply.

Environmental trust

Specified investment flow-through trust

The specified investment flow-through (SIFT) trust is a trust (other than a trust that is a real estate investment trust for the tax year) that meets the following conditions at any time during the tax year:

- the trust is resident in Canada; - investments in the trust are listed or traded on a stock exchange or other public market; and - the trust holds one or more non-portfolio properties.

Retirement compensation arrangement (RCA)

A retirement compensation arrangement (RCA) is a plan or an arrangement under which an employer, former employer, or in some cases an employee makes contributions to a person or partnership, referred to as a custodian.

The custodian holds the funds in trust with the intent of eventually distributing them to the employee (beneficiary).

Other (specify)

Business-Num

Use the keyword Business-Num to enter the business number of the non-profit organization.

Residence

Use the keyword Residence to enter the province or territory of residence of the trust at the end of the taxation year.

The following options are applicable for the keyword Residence.

Newfoundland and Labrador

Prince Edward Island

Nova Scotia

New Brunswick

Quebec

Ontario

Manitoba

Saskatchewan

Alberta

British Columbia

Yukon

Northwest Territories

Nunavut

Deemed resident

Non-resident

First-Nation

In the keyword First-Nation, select the applicable option from the choices available.

The following options are applicable for the keyword First-Nation.

Carcross/Tagish

Champagne and Aishihik

Kluane

Kwanlin Dun

Little Salmon/Carmacks

Nacho Nyak Dun

Selkirk

Ta'an Kwach'an

Teslin Tlingit

Tr'ond‰k Hw‰ch'in

Vuntut Gwitchin

Tlicho

Nunatsiavut Government

Not residing on settlement land

Canadian-Res

Use the keyword Canadian-Res to indicate whether the trust was a resident of Canada throughout the taxation year.

The following options are applicable for the keyword Canadian-Res.

Yes

No

Country.r

Use the keyword Country.r to identify the trust's other country of residence during the taxation year. Make a selection from the alphabetical listing.

GrandFathered

Use the keyword GrandFathered to indicate whether the inter vivos trust is grandfathered.

A grandfathered inter vivos trust is one established before June 18, 1971, which:

- was resident in Canada without interruption from June 18, 1971, until the end of the taxation year;

- did not carry on any active business in the taxation year;

- did not receive any property as a gift since June 18, 1971;

- after June 18, 1971, did not incur any debt or obligation to pay an amount to, or guaranteed by, any person with whom any beneficiary of the trust was not dealing at arm's length;

- did not receive any property after December 17, 1999, as a transfer from another inter vivos trust, where:

. the other trust is not grandfathered; and . there is no change in the beneficial ownership of the property on its transfer; and

- for taxation years beginning agter 2002, did not receive any contributions after June 22, 2000.

The following options are applicable for the keyword GrandFathered.

Yes

No

Date.t

Use the keyword Date.t to enter the date of death or the date the trust was created.

The following options are applicable for the keyword Date.t.

Date of death

Date trust created

SIN

Use the keyword SIN to enter the social insurance number of the deceased person.

Trust-Info

Use the keyword Trust-Info to enter required information for the trust return.

The following options are applicable for the keyword Trust-Info.

First return

Prior year filed

Amended return

Capital/income ownership changed

Terms amended since June 1971

Trust not continuously residing in Quebec

Capital gifts received since June 1971

Non-arm's length debt incurred

Multiple trusts/single settlor

Trust not continuously residing in Canada

Payment of income to beneficiaries

Payment of income not required by will

Preferred beneficiary election

Section 1054 or section 1055.1 election

Received property as a revocable or blind trust

Property transf. from other trust post Dec. 99

Assets (not cash) distributed to beneficiary

Received property as contrib. since June 00

Public trust required to post info under S204.1

International Financial Reporting Standards used

Date.info

Use the keyword Date.info to indicate the date for the required information.

Document

Use the keyword Document to specify whether the trust document or will is attached or included with the T1 personal income tax return.

The following options are applicable for the keyword Document.

Attached

With T1

Trust-Info.rca

Use the keyword Trust-Info.rca to enter required information for the trust return.

The following options are applicable for the keyword Trust-Info.rca.

First return

Amended return

Final return

Changed address since last T3-RCA tax return

Custodian changed since the last tax return

Date.info

Use the keyword Date.info to indicate the date for the required information.

Document

Use the keyword Document to specify whether the trust document or will is attached or included with the T1 personal income tax return.

The following options are applicable for the keyword Document.

Attached

With T1

Election

Use the keyword Election to indicate the type of election made by the trust.

The following options are applicable for the keyword Election.

Designation under subs. 104(13.1)/s. 663.1

A trust may make an election under which all or part of the trust income paid or payable in the year to all the beneficiaries is not allocated to the beneficiaries. The trust does this by designating an amount federally under subsection 104(13.1) and for Quebec under section 663.1 of the taxation act. The amounts designated under these provisions will be reported as income on the trust return rather than in the hands of the beneficiaries.

Designation under subs. 104(13.2)/s. 663.2

A trust may make an election under which all or part of the trust income paid or payable in the year to all the beneficiaries is not allocated to the beneficiaries. The trust does this by designating an amount federally under subsection 104(13.2) and for Quebec under section 663.2 of the taxation act. The amounts designated under these provisions will reduce the amount of taxable capital gains of the beneficiary and will be included in the income reported by the trust.

Subs. 164(6) election (capital losses)/s. 1054

The legal representative of the trust can elect to transfer estate losses to the final return of the deceased person. The estate losses which can be transferred are those that occurred when the trust disposed of capital property resulting in more capital losses than capital gains or of depreciable property resulting in a terminal loss. This election only applies to the first taxation year of a deceased person's estate. The amount entered cannot be greater than the capital loss calculated for this return.

The elected amount will be entered on line 19 of federal schedule 1 as the gross capital loss to be transferred to the deceased's final tax return. The Quebec form TP-1012.B requires the net capital loss to be transferred therefore 50% of the elected amount will be entered on this schedule.

Subs. 159(6.1)/s. 1031.1 to defer tax on deemed sales

If the trust has excess income tax payable further to a deemed disposition, the trust may elect under ss. 159(6.1) of the income tax to defer payment . This election allows the trust to pay the income tax arising from the deemed realization in up to ten equal consecutive annual instalments. The first instalment must be paid no later than the payment deadline which is the 90th day following the end of the taxation year in which the election is made. Interest, calculated at the prescribed rate, must be added to each instalment. By choosing this election, DtMax will automatically fill a T2223 form and TP-1031.1 for Quebec with details.

Terminal-Loss   

Use the keyword Terminal-Loss to indicate the losses claimed under section 1054 that is attributed to terminal losses. This amount will be entered on the Quebec form TP-1012.B. An amended income tax return may be required to be filed with the documents listed in section 1054R1 of the Regulation respecting the Taxation Act. Use [Alt-J] to enter different values for other jurisdictions.

IncLessDeemDisp   

Use the keyword IncLessDeemDisp to enter the taxable income calculated whithout taking into account the income arising from deemed dispositions.

In order to calculate this income, copy the keywords from production into a plan, and make necessary adjustments. Calculate the return, note the taxable income and return to the production version and use this keyword to enter the calculated taxable income from the plan.

This amount will be entered on line 82 of form T1055 and on line 2 of the Quebec form TP-1031.1. Use [Alt-J] to enter different values for other jurisdictions.

Adj-TaxPayable   

Use the keyword Adj-TaxPayable to enter the income tax that would be payable by the trust if its taxable income excluded any deemed dispositions.

In order to calculate this income, copy the keywords from production into a plan, and make necessary adjustments. Calculate the return, note the total taxes payable return to the production version and use this keyword to enter the calculated total taxes payable from the plan.

This amount will be entered on line 83 of form T1055 and on line 3 of the Quebec form TP-1031.1. Use [Alt-J] to enter different values for other jurisdictions.

No-Instalments   

Use the keyword No-Instalments to indicate the amount of payments that will be required to repay the elected amount of deferred tax. DtMax will compute equal annual instalments based on this information. Use [Alt-J] to enter different values for other jurisdictions.

Interest.e   

The trust will have to pay interest, compounded daily at the prescribed rate in effect at the time the election is made. The first instalment must be paid no later than the payment deadline which is the 90th day following the end of the taxattion year in which the election is made. Therefore, the first instalment does not attract any interest.

The following options are applicable for the keyword Interest.e.

Interest on instalment 2

Interest on instalment 3

Interest on instalment 4

Interest on instalment 5

Interest on instalment 6

Interest on instalment 7

Interest on instalment 8

Interest on instalment 9

Interest on instalment 10