With new forms appearing on the CRA website weekly, sometime even daily, it requires a fair amount of due diligence to stay current with all of the updated forms and guides.
Recently, the CRA released an updated Form T3SCH5 which incorporates Form T657, Calculation of Capital Gains Deduction. This updated version of Schedule 5 of the T3 Trust Return has had extensive modifications made to it, and requests more detailed information regarding the capital gains deduction and in what period the gains occurred.
The T3 Schedule 5 is used to calculate the capital gains deduction for a spousal or common law partner's trust for the tax year in which the beneficiary spouse (or common-law partner) died.
The updated form includes the calculation in the year of death for the unused lifetime capital gains deduction limits. The completed schedule must be filed with the trust's return.
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