Free untitled - Canada

T3 ­
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SPOUSAL OR COMMON-LAW PARTNER TRUST'S CAPITAL GAINS DEDUCTION IN YEAR OF BENEFICIARY'S DEATH

SCHEDULE 5
Page 1 of 3

Enter the applicable tax year in the box above. Include a completed copy of this schedule with the trust's return. Use this schedule to calculate a spousal or common-law partner trust's capital gains deduction for the tax year in which the beneficiary spouse or common-law partner died. The trust must be a resident of Canada throughout the current calendar year to be eligible to claim the capital gains deduction. For this deduction, we also consider the trust to be a resident throughout the current year if the trust was a resident of Canada for part of the current year and throughout the previous or the next year. Note: A joint spousal or common-law partner trust, an alter ego trust, or a trust that elected to defer the deemed disposition day cannot claim a capital gains deduction.

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Before completing this schedule, you have to calculate the trust's eligible taxable capital gains (line 34 of T3 Schedule 3, Eligible Taxable Capital Gains). If the spousal or common-law partner trust is subject to a deemed disposition, see the section called "Form T1055, Summary of Deemed Dispositions," in publication T4013, T3 Trust Guide. A post-1971 spousal or common-law partner trust can claim a capital gains deduction on qualified farm property, qualified fishing property, or qualified small business corporation shares in the tax year the beneficiary spouse or common-law partner dies. The trust can claim the deduction to the extent that the beneficiary spouse or common-law partner could have claimed a deduction for the eligible taxable capital gains, if the gains had belonged to that spouse or common-law partner and not to the trust. A pre-1972 spousal trust can claim a capital gains deduction on qualified farm property, qualified fishing property, or qualified small business corporation shares when reporting a deemed disposition on the day the beneficiary spouse dies. If the trustee has never elected to defer the deemed disposition day, the trust can claim this deduction. For definitions of post-1971 spousal or common-law partner trust and pre-1972 spousal trust, see Chart 1 in the T3 Trust Guide.

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Part A ­ Deceased beneficiary spouse or common-law partner information
Name of deceased beneficiary spouse or common-law partner Address Social insurance number Year Date of death Month

Day

Part B ­ Calculating the spousal or common-law partner trust's capital gains deduction on all property
Spousal or common-law partner trust's eligible taxable capital gains for the year (line 34 of T3 Schedule 3) Amounts designated on lines 929 and 930 of T3 Schedule 9 Trust's eligible taxable capital gains for the year (line 1 minus line 2) Spouse's or common-law partner's cumulative loss amount and cumulative capital gains deduction claimed after 1984 (line 16 of Chart 1 on page 2) q

1 2 3

5020

4 5 q q 6 7

Spouse's or common-law partner's cumulative eligible taxable capital gains reported after 1984 (line 25 of Chart 2 on page 2) 5030 Subtotal (line 4 minus line 5; if negative, enter "0") Net amount (line 3 minus line 6; if negative, enter "0")

Spousal or common-law partner trust's taxable capital gains for the year on qualified farm or fishing property, and qualified small business corporation shares (line 6 of T3 Schedule 3) Spouse's or common-law partner's unused capital gains deduction for the year (the lesser of the amounts from lines 33 or 40, on page 3) Capital gains deduction for resident spousal or common-law partner's trust (line 7, 8, or 9, whichever is less) Enter this amount on line 53 of the T3 return.

8

5200

9 10

T3 SCH 5 E (09)

(Ce formulaire est disponible en français.)

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Chart 1 ­ Spouse's or common-law partner's cumulative loss amount and cumulative capital gain deduction claimed after 1984
Amount of line 217 of the spouse's or common-law partner's T1 returns for each year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Net capital losses applied after 1984, up to the end of the year of death (line 253 of the spouse's or common-law partner's T1 return for each year) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Spouse's or common-law partner's cumulative eligible taxable capital gains (line 25 of Chart 2) . . . . Subtotal (line 12 minus 13; if negative, enter "0") 12 13 q e e q 14 15 16 11

Total capital gains deductions claimed after 1984, up to the end of the year of death (line 254 of the spouse's or common-law partner's T1 returns for each year). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Subtotal (add lines 11, 14 and 15) Enter the result from line 16 on line 4 of this schedule.

Chart 2 ­ Spouse's or common-law partner's cumulative eligible taxable capital gains reported after 1984
Total taxable capital gains reported after 1984 and before 1992 (line 127 of spouse's or common-law partner's T1 returns for these years). Do not include reserves reported on property disposed of before 1985 . . . . . . . . . . . . . . . . . . . . . . . 1992 and 1993 eligible taxable capital gains (line 3 in Part 1 of Form T657 or T657A for 1992 and 1993) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1994 eligible taxable capital gains (line 5 in Part 1 of Form T657 or T657A for 1994) . . . . . . . . . . . . . 1995 eligible taxable capital gains (line 7 in Part 1 of Form T657, or line 3 of Form T657A for 1995) . 1996 to 1999 eligible taxable capital gains (line 8 in Part 1 of Form T657 for those years) . . . . . . . . . 2000 eligible taxable capital gains (line 7 in Part 1 of Form T657 for 2000) . . . . . . . . . . . . . . . . . . . . . 2001 eligible taxable capital gains (line 8 in Part 1 of Form T657 for 2001) . . . . . . . . . . . . . . . . . . . . . 2002 to 2009 eligible taxable capital gains (line 10 in Part 1 of Form T657 for those years) . . . . . . . . Cumulative eligible taxable capital gains (total of lines 17 to 24). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Enter the result from line 25 on line 5 of this schedule. e e e e e e e q 17 18 19 20 21 22 23 24 25

Chart 3 ­ Spouse's or common-law partner's adjusted capital gains deduction after 1984
Total capital gains deductions claimed after 1984 and before 1988 (line 254 of spouse's or common-law partner's 1985 to 1987 T1 returns). Capital gains deductions claimed in 1988 and 1989 excluding eligible capital property (line 254 of spouse's or common-law partner's 1988 and 1989 T1 returns), minus any amounts reported on lines 543 and 544 on the spouse's or common-law partner's T1 Schedule 3 for 1988 and 1989; if negative, enter "0" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Adjustment of 1988 and 1989 capital gains deductions excluding eligible capital property (enter 1/4 of amount on line b). . . . . Capital gains deductions claimed in 1988 and 1989 for eligible capital property (total of lines 254 of spouse's or common-law partner's 1988 and 1989 T1 returns), minus the amount on line b above; not to exceed the total of lines 543 and 544 on the spouse's or common-law partner's T1 Schedule 3 for 1988 and 1989 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Adjustment of 1988 and 1989 capital gains deductions for eligible capital property (enter 1/3 of amount on line d) . . . . . . . . . . Total capital gains deductions claimed in 1990 to 1999 (line 254 of spouse's or common-law partner's T1 returns for these years) . . . . . . . Adjustment of 1990 to 1999 capital gains deductions (enter 1/3 of amount on line f) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Total capital gains deduction claimed in 2000 (line 254 of spouse's or common-law partner's 2000 T1 return). . . . . . . . . . . . . . Adjustment of 2000 capital gains deduction. Amount from line h × [1 ­ (1 ÷ (2 × IR))] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Total capital gains deduction claimed in 2001 to 2009 (line 254 of spouse's or common-law partner's T1 returns for these years). . . . . . . . . Total of lines a to j . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . a

e

b c

e e e e q

d e f g h i j k

Note: IR represents the inclusion rate for 2000. This rate is from line 16 in Part 4 of the spouse's or common-law partner's T1 Schedule 3 for 2000, or from the spouse's or common-law partner's notice of assessment or latest notice of reassessment for 2000.

Part 1a ­ Calculating spouse's or common-law partner's unused capital gains deduction available for the spousal or common-law partner trust's dispositions of qualified farm property, qualified fishing property, and qualified small business corporation shares
Complete this part if:
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the trust is reporting a reserve in 2009 from the disposition, before March 19, 2007, of qualified farm property, qualified fishing property, and/or qualified small business corporation shares. $250,000 00 26 27

Maximum capital gains deduction for qualified farm property, qualified fishing property, and/or qualified small business corporation shares for dispositions before March 19, 2007 . . . . . . . . . . . . . . Spouse's or common-law partner's capital gains deductions (line k of Chart 3 above) . . . . . . . . . . . . . Spouse's or common-law partner's unused capital gains deduction available for dispositions of qualified farm property, qualified fishing property, and qualified small business corporation shares (line 26 minus line 27; if negative, enter "0") . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

q

28

Page 3 of 3 Taxable capital gains from reserves on dispositions before March 19, 2007, of qualified farm property, qualified fishing property, and/or qualified small business corporation shares. Line 1, column 3 of T3 Schedule 2 . . . . . . . . . . . . . . . Line 3, column 3 of T3 Schedule 2 . . . . . . . . . . . . . . . Line 5, column 3 of T3 Schedule 2 . . . . . . . . . . . . . . . Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . e e e q
X 1/2

29

Spouse's or common-law partner's unused capital gains deduction available for the spousal or common-law partner trust's dispositions of qualified farm property, qualified fishing property, and qualified small business corporation shares ­ Enter the lesser of lines 28 or 29 . . . . . . . . . . . . . . . . . . . . . . .

30

Part 1b ­ Calculating spouse's or common-law partner's unused capital gains deduction available for the spousal or common-law partner trust's dispositions of qualified farm property, qualified fishing property, and qualified small business corporation shares
Complete this part if:
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the trust disposed of qualified farm property, qualified fishing property, or qualified small business corporation shares in the year; or the trust is reporting a reserve in 2009 from the disposition, after March 18, 2007, of qualified farm property, qualified fishing property, and/or qualified small business corporation shares. $375,000 00 31 32

Maximum capital gains deduction for qualified farm property, qualified fishing property, and/or qualified small business corporation shares for dispositions after March 18, 2007 . . . . . . . . . . . . . . . . . . . . . . . Spouse's or common-law partner's capital gains deductions (line k of Chart 3 on page 2) . . . . . . . . . Spouse's or common-law partner's unused capital gains deduction available for dispositions of qualified farm property, qualified fishing property, and qualified small business corporation shares (line 31 minus line 32; if negative, enter "0") . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

q

33

Taxable capital gains from dispositions after March 18, 2007, of qualified farm property, qualified fishing property and/or qualified small business corporation shares included in the spousal or common-law partner trust's income for the year: Line 1 of T3 Schedule 1 . . . . . . . . . . . . . . . . . . . . . . . . Line 2 of T3 Schedule 1 . . . . . . . . . . . . . . . . . . . . . . . . Line 2, column 3 of T3 Schedule 2 . . . . . . . . . . . . . . . . Line 4, column 3 of T3 Schedule 2 . . . . . . . . . . . . . . . . Line 6, column 3 of T3 Schedule 2 . . . . . . . . . . . . . . . . Line 1 of T3 Form T1055 . . . . . . . . . . . . . . . . . . . . . . . Line 2 of T3 Form T1055 . . . . . . . . . . . . . . . . . . . . . . . Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . e e e e e e q
X 1/2

34 e 35

Spousal or common-law partner trust's farming/fishing income eligible for the capital gains deduction (line 5 of T3 Schedule 3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The trust's total taxable capital gains from the disposition of qualified farm property, qualified fishing property, and qualified small business corporation shares after March 18, 2007 (line 34 plus line 35; if negative, enter "0"). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

q

36 37

Spouse's or common-law partner's unused capital gains deduction available for the spousal or common-law partner trust's dispositions of qualified farm property, qualified fishing property, and qualified small business corporation shares ­ Enter the lesser of lines 33 or 36 . . . . . . . . . . . . . . . . . . . . . . .

Part 1c ­ Spouse's or common-law partner's unused capital gains deduction for the year
Spouse's or common-law partner's unused capital gains deduction available for the spousal or common-law partner trust's dispositions of qualified farm property, qualified fishing property, and qualified small business corporation shares before March 19, 2007 (the amount from line 30) . . . . . . Spouse's or common-law partner's unused capital gains deduction available for the spousal or common-law partner trust's dispositions of qualified farm property, qualified fishing property, and qualified small business corporation shares after March 18, 2007 (the amount from line 37) . . . . . . . (Subtotal add lines 38 and 39) On line 9, enter the lesser of the amounts from lines 33 or 40.

38

e q

39 40