Hi,
I’m have a client come to me regarding an estate return.
TP died Dec 4, 2022
T1 completed on time and clearance certificate received
TP had a PRE which was correctly shown in the T1.
Executor never filed anything for the T3 because the house was in limbo legally and finally sold in 2025 at loss since the market started going downhill.
I’m trying to support this new client with the T3 filings - just looking for some clarification:
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obtain Trust account via myrep account - completed
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the T3 is a testmentary GRE - is this correct?
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1st tax year would be Dec 5, 2022 until Dec 4, 2023 - if so, I’ve completed all the pages on the ‘info’ tab for the trust identification. Since there was nothing in the trust except this house and this house didn’t earn any rental income etc for this first year - am I considered done and can file the return? Or do I need to list the house and ACB somewhere?
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2nd year would be Dec 5, 2023 until Dec 4, 2024 - I would carryforward the 2023 file - yet to come
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3rd year would be Dec 4, 2024 until Dec 4, 2025 - the house sold/closed on March 31, 2025 - would the return still be until Dec 4 or would it be until March 31, 2025?
In this return I would outline the house in S1 - disposition of capital property and it would be a loss -
In the ‘info’ tab, I would check off that this is the final return of the trust - do I enter the windup myself based on what I picked above (March 31, 2025 or Dec 4, 2025)? Do I have to formally do anything to wind up the trust?
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final step to obtain another clearance certificate on the T3
Thanks so much - trying to assist elderly neighbours for free