What has changed

The latest changes affecting trusts and trust reporting.

Trust reporting frequently asked questions (FAQ) update

Updated: March 14, 2025

We have updated our Enhanced reporting rules for trusts and bare trusts: Frequently asked questions page to provide additional information and guidance.

Capital gains update

Updated: February 19, 2025, and March 21, 2025

On March 21, 2025, the Government of Canada announced that it does not intend to proceed with a proposed increase to the capital gains inclusion rate. This means that the inclusion rate for calendar year 2024 remains at 50%.

If the trust had a disposition of qualified farm or fishing property (QFFP), or qualified small business corporation shares (QSBCS) in 2024 you must report the disposition before June 25, 2024 (Period 1) or after June 24, 2024 (Period 2) in the fields provided. This is necessary to support the increase to the Lifetime Capital Gains Exemption (LCGE) limit to $1.25 million, effective June 25, 2024, which is available to individuals. Separate reporting for Period 1 and Period 2 may also be necessary if you received a tax slip reporting dispositions in Period 1 and Period 2 because some tax slips had already been issued prior to the January 31, 2025, announcement by Department of Finance related to the change to the effective date for the capital gains inclusion rate increase.

For more information, see Capital gains for 2024 in the T4013 T3 Trust Guide.

The Canada Revenue Agency (CRA) granted relief in respect of late-filing penalties and arrears interest until May 1, 2025, for impacted T3 trust filers to provide additional time for taxpayers reporting capital dispositions to meet their tax filing obligations. This relief extends to any forms and elections that are normally included with T3 returns (e.g.: Foreign Reporting Forms, including Form T1135 Foreign Income Verification Statement). For the T3 Trust filers, relief extends to the Schedule 15 (T3SCH15 Beneficial Ownership Information of a Trust) and Schedule 130 (T3SCH130 Excessive Interest and Financing Expenses Limitation - Canada.ca) as well.

This relief does not include any Special Elections and Returns forms such as the T2057, Election on Disposition of Property by a Taxpayer to a Taxable Canadian Corporation, T2058, Election on Disposition of Property by a Partnership to a Taxable Canadian Corporation, and T2059, Election on Disposition of Property by a Taxpayer to a Canadian Partnership.

Find out more information: Update on the filing of information returns

Trust reporting for the 2024 tax year

Updated: January 30, 2025

As announced on October 29, 2024, bare trusts are not required to file a T3RET T3 Income Tax and Information Return (T3 return) including T3SCH15 Beneficial Ownership Information of a Trust (Schedule 15) for the 2023 and 2024 tax years, unless the Canada Revenue Agency (CRA) makes a direct request for these filings.

For the 2024 tax year, the CRA will continue to administer the enhanced trust reporting rules as enacted for tax years ending on or after December 31, 2023. Affected trusts are required to file a T3 return, including Schedule 15, unless specific conditions are met.