Free untitled - Canada

T3 ­

ELIGIBLE TAXABLE CAPITAL GAINS

SCHEDULE 3

Enter the applicable tax year in the box above. Include a completed copy of this schedule with the trust's return. Complete this schedule if the trust is a personal trust designating net taxable capital gains (see reverse) to a beneficiary who is an individual or a trust, to determine the amount that is eligible for the beneficiary's capital gains deduction. Also use this schedule if the trust is a spousal or common-law partner trust claiming a capital gains deduction, available only in the year the beneficiary spouse or common-law partner dies. Eligible capital gains include only gains from dispositions, or deemed dispositions, of qualified farm property (QFP), qualified fishing property (QXP), or qualified small business corporation shares (QSBCS).

Part 1 ­ Trust's annual gains limit for the year
Eligible capital gains (losses) for the year (lines 1 and 2 of Schedule 1, and lines 1 and 2 of Form T1055) Capital gains (losses) from reserves on QFP/QXP and QSBCS (lines 1 to 6 of Schedule 2) Subtotal (line 1 plus line 2) Multiply line 3 by 1/2.

e q i 1/2

1 2 3 q
3080

Farming or fishing income eligible for the capital gains deduction (See Chapter 4 of Guide T4003, Farming Income, or Guide T4004, Fishing Income.)

Subtotal (line 4 plus line 5; if negative, enter "0") Total taxable capital gains (or net capital losses) for the year (line 21 of Schedule 1 and line 25 of Form T1055, minus 1/2 of the T3 amount on line 10 of Schedule 1) Amount from line 5 above Subtotal (line 7 plus line 8; if negative, enter "0") Total qualifying taxable capital gains for the year (line 6 or line 9, whichever is less) Net capital losses of other years deducted in current year (line 52 of the T3 return) Line 9 minus line 10 Subtotal (line 11 minus line 12; if negative, enter "0") Allowable business investment losses (line 25 of the T3 return) Total losses (line 13 plus line 14) Annual gains limit (line 10 minus line 15; if negative, enter "0")

e q

4 5 6

7 e q 8 9 10 11 q e q q 12 13 14 15 16

Part 2 ­ Trust's cumulative gains limit for the year
Qualifying taxable capital gains reported after 1984 and before current year (line 19 of previous year's Schedule 3) Qualifying taxable capital gains for the year (amount from line 10 above) Cumulative taxable capital gains eligible for the capital gains deduction (line 17 plus line 18) Cumulative loss amount reported in previous years after 1984 (line 24 of previous year's Schedule 3) Taxable portion of reserves from pre-1985 dispositions included in income for the years 1985 to 1991. If the trust claimed net capital losses of other years and, in the same tax year, reported reserves from pre-1985 dispositions in a 1985 to 1991 tax year, complete the chart on the back. Adjusted cumulative loss amount reported after 1984 and before the current year (line 20 minus line 21) Total losses used to calculate the annual gains limit (amount from line 15 above) Cumulative loss amount (line 22 plus line 23) Cumulative net investment loss (line 28 of Schedule 4) Total losses (line 24 plus line 25) Cumulative gains limit (line 19 minus line 26; if negative, enter "0") 3230 3200

17 e q 20 18 19

21 q e q e q 22 23 24 25 q 26 27

Part 3 ­ Trust's eligible taxable capital gains for the year
Annual gains limit (amount from line 16 above) Cumulative gains limit (amount from line 27 above) Eligible taxable capital gains designated in earlier years Line 32 of previous year's Schedule 3 Lines 929 and 930 of previous year's Schedule 9 Subtotal (line 30 plus line 31)

28 29
3321 3322

30 e q 31 q 32 33 34

Subtotal (line 29 minus line 32; if negative, enter "0") Eligible taxable capital gains (line 28 or line 33, whichever is less)

Enter the amount from line 34 on line 1 of Schedule 5, or use it to calculate the taxable capital gains eligible for deduction on Schedule 9. See lines 929 and 930 in the publication T4013, T3 Trust Guide.

T3 SCH 3 E (09)

(Ce formulaire est disponible en français.)

Adjusted cumulative loss amount reported after 1984 and before the current year
You have to make an adjustment if the trust claimed net capital losses of other years in a tax year after 1984 and before 1992 if, in the same tax year, the trust reported a pre-1985 reserve. You have to reduce the net capital losses of other years claimed in a year by the taxable portion of the pre-1985 reserve reported in the year. The following chart will help you calculate this adjustment for line 21. If you have never made this calculation, you have to make it in the current year for all the years from 1985 to 1991.

Calculation for line 21 Year
1 Net capital losses of other years claimed in the year 2 Reserves related to capital dispositions before 1985 3 4 Taxable portion of reserve (column 2 × column 3) 5 Lesser of amounts in column 1 and column 4 (if negative, enter "0")

1985

$

$

x 1/2

$

$

1986

$

$

x 1/2

$

$

1987

$

$

x 1/2

$

$

1988

$

$

x 2/3

$

$

1989

$

$

x 2/3

$

$

1990

$

$

x 3/4

$

$

1991

$

$

x 3/4

$

$

Total
Enter the total of column 5 on line 21 of this schedule.

$

1. Net capital losses of other years claimed in the year--for 1985 and 1986, line 6 of Part I of Form T672; for 1987, line 523 of Schedule 5B; for 1988 to 1991, line 52 of the T3 return. Also include any capital loss carrybacks claimed in each year. 2. Reserves related to capital dispositions before 1985--for 1985, previous-year reserve from Schedule 2; for 1986, line 511 of Schedule 5; for 1987, 1985 and prior, net reserve (line 513 minus line 514) from Schedule 5A; for 1988 and 1989, line 575 of Schedule 5C; and for 1990 and 1991, line 215 of Schedule 2.

Related schedules
If you complete Schedule 3, you also have to complete and submit Schedule 4, Cumulative Net Investment Loss. You will need the amount you calculated on line 34 of Schedule 3 when you complete Schedule 5, Spousal or Common-Law Partner Trust's Capital Gains Deduction in Year of Beneficiary's Death, and Schedule 9, Income Allocations and Designations to Beneficiaries. This is the amount of the trust's taxable capital gain that qualifies for a capital gains deduction for a spousal or common-law partner trust (line 1 of Schedule 5) or an individual beneficiary (lines 929 and 930 of Schedule 9).