Bare trusts: New reporting rules may catch you off guard скачать в хорошем качестве

Bare trusts: New reporting rules may catch you off guard

This year, new reporting rules in Canada for trusts may catch many people off guard. One of the biggest changes is the addition of “bare trusts” to types of trusts that must file a trust return (T3) by March 30 or March 31st depending on whether there is a leap year So, what on earth is a bare trust? Let's break it down. It's when someone holds assets for someone else—simple, right? But it's crucial to identify if you have a bare trust, especially with the new filing requirements looming. Consider this: joint ventures in real estate might just be a bare trust. Imagine legally owning a property but splitting profits with Billy Bob or Betty Sue—yep, that's a bare trust scenario. Then there's the property purchase game. Sometimes, for financing, tax and/or legal reasons, it's in my name but really owned by my corporation. Another bare trust. Special shares: picture a parent holding shares for their minor child. It happens, and it's a bare trust. And don't overlook the bank or investment accounts. Holding onto an account for an elderly parent for probate planning reasons or minor child? Bingo! Another example of a bare trust. Now, why the fuss about filing? Before, filing for a bare trust wasn't a thing. But welcome to the new era! Now, by March 30th or 31st (watch out for leap years), we've got to file a T3 tax return with a year-end of December 31st. Here's where it gets interesting—or nerve-wracking—depending on your view. The penalties are no joke. Miss filing? It's a minimum of $100, maxing out at $2,500. But wait, there's more! Gross negligence could tag on 5% of your trust's asset value (minimum of $2,500). That's a hefty bill request if Revenue Canada decides to knock. So, get ahead of the game. Talk to us, identify your potential bare trusts, and let's tackle this before it becomes a March madness scenario. We are hoping to complete the majority of our filings from December through the early part of February given those “other” tax deadlines that creep at the ends of February, March and April. Trust me, we don't want those penalties snatching your hard-earned cash. 00:00:00 Introduction 00:00:37 Bare trust: What is it? 00:00:58 Examples of bare trusts 00:05:13 Bare trust filing deadlines & requirements 00:07:57 Bare trust filing penalties 00:12:04 More resources Canada Revenue Agency Update, December 1, 2023: Significant updates were made on December 1, including an announcement that they may provide relief from interest and late filing penalties for 2023 for bare trusts. This only applies for 2023 returns and only for bare trusts that are inadvertently missed.  My 2 cents on this "significant update": Let's not get overly excited. The CRA may provide relief and may do this if it's inadvertent (who defines what inadvertent means?) and may do this only for 2023. This sounds a whole lot like "please follow the rules or you're at significant risk". More resources -------------------------- SUBSCRIBE to learn how you can save taxes, and do wonderful things™ - Click here:    / @georgeedube   -------------------------- Want to talk more about how my team and I can help? Email: georgedube@georgedube.com -------------------------- More at https://georgeedube.com/ Instagram: @georgeEdube Facebook: George E. Dube LinkedIn: George Dube Saving the world from tax, one bowtie at a time™ --------------------------- Remember – circumstances are unique! This information is summary in nature. Seek out advice from your tax advisor about your specific situation.