I understand your frustration. Dealing with the CRA can indeed be a time-consuming and sometimes confusing process. It's unfortunate that getting answers often involves long wait times and responses filled with technical jargon. It's essential to navigate through these challenges as best as possible, perhaps by seeking assistance from tax professionals or utilizing online resources to clarify any uncertainties.
I purchased and store precious metals. I buy them for my grandson every year. I buy him some gold and I buy him some silver, but I keep it and he will get it when he’s old enough or when I pass do I need to report any of that?
Hi Tomie, Thank you for bringing up the point about CRA waiving late filing penalties for the first year. It's indeed a significant aspect to consider, especially for individuals who might be concerned about potential penalties. In our discussion regarding bare trust legislation, we aimed to focus on the core principles and implications surrounding this specific topic. However, you make a valid point, and highlighting the CRA's policy regarding late filing penalties could provide valuable insight for our audience. We appreciate your input and will certainly consider incorporating this information into future discussions or communications.
I have a joint account with my 93 year old mother. I also have her power of attorney for all her financial affairs. Since the POA essentially means that I act for her in all affairs, do I need to file the T3? Another way to think of this is does the POA take precedence of the joint nature of the account as I could perform all the same actions in the account using the powers of the POA and ignoring the joint nature of the account.
If you are a POA, a Bare Trust filing is not required. The definition of a POA is a legal document that allows you to ‘act’ on someone’s behalf. It does not allow the POA to access assets for themselves and be the beneficial owners of those assets.
Cecilia, in light of the new trust reporting rules effective for the 2023 tax year and your jointly owned property with your adult daughter, it's important to consider whether your situation falls under the purview of a bare trust. Under these regulations, more Canadians are required to file trust returns, particularly in cases of joint ownership between family members. Given the complexity of tax regulations and individual circumstances, it's advisable to consult with your tax preparer or a qualified tax advisor. They can provide personalized guidance based on your specific situation and ensure compliance with the updated tax laws. To determine if you need to file a trust return, you'll need to assess if a bare trust exists in your situation. If you jointly own assets with your daughter for specific purposes such as helping her secure a mortgage or facilitating estate planning, it's possible that a bare trust scenario is in effect. Keep in mind any excluded reasons that may exempt you from filing, such as if the trust was in effect for less than three months or if the value of the joint asset doesn't exceed $50,000. In summary, it's essential to seek professional advice to understand your obligations under the new trust reporting rules and ensure compliance with tax regulations. Consulting with a tax preparer or advisor can provide clarity and help navigate any complexities related to your jointly owned property and potential bare trust situation.
$50,000 bank account- at year end? Or at any time during the year? Also what is a huge penalty? Is it a flat fee or a percentage of something? Thanks. Great video.
Thanks for your question. If the account exceeds $50,000 at any time during year, the bare trust must be filed. Failure to make the required filings and disclosures on time attracts penalties of $25/day, to a maximum of $2,500, as well as further penalties on any unpaid taxes. New gross negligence penalties may also apply, being the greater of $2,500 and 5% of the highest total fair market value of the trust’s property at any time in the year. These will apply to any person or partnership subject to the new regime.
@user-es8kf7ni6t Beneficiaries of a bare trust are indeed the legal owners of the assets held within the trust. As such, they have the right to both the income generated by the trust's assets and the capital itself. This type of trust is often used in estate planning and asset protection strategies. Please consult with your tax professional for a specific recommendation.
My dother is beneficiary to my RSPP, my Gis and shi is joint on my bank acount in two vanks. What I shud report, ? Every acount, separatly. I pay tax on interest from this acount. Hu reporting me or her?
It's essential to reach out to your financial advisor regarding the reporting requirements for the various accounts where your daughter is listed as a beneficiary or joint account holder. They can provide tailored guidance based on your specific financial situation and ensure that you fulfill all necessary reporting obligations accurately. They will also be able to advise on who should report the income generated from these accounts, whether it's you or your daughter, considering the tax implications involved.
for an intrust minor investment account if the value is under 50k$. but it earned 1000$ in dividends is it exempt 2nd scenario wife has legal tittle to a family home. i heard there were some interpretations that came out how do they effect these scenarios. also i heard penalties are brig waived
The cra should have sent paperwork out on this last year an also exlpain different situations this is crazy i also hsvd my income tax return done then i find out about this ?,
@user-es8kf7ni6t It can certainly be frustrating to encounter unexpected tax-related matters, especially when it involves paperwork that should have been provided earlier. It's essential to stay informed about any changes or additional requirements from the CRA. If you have specific concerns or questions about your situation, it may be beneficial to reach out to them directly for clarification. They can provide guidance tailored to your circumstances.
CRA just waived the bare trust reporting requirement for 2023 . Will provided guidance after consultation with dept of finance later for 2024
As of today, bare trusts are exempt from filing unless required specifially from CRA.
No one is mentioning joint accouts shared by spouses where both spouses have equal access to funds in those accounts.
Because both spouses are beneficial owners it's exempt. It's only when a joint owner is not a beneficial owner of the property.
Call CRA and wait 2-3 hours for jargon that doesn't even answer your question. CRA interprets things however they want.
I understand your frustration. Dealing with the CRA can indeed be a time-consuming and sometimes confusing process. It's unfortunate that getting answers often involves long wait times and responses filled with technical jargon. It's essential to navigate through these challenges as best as possible, perhaps by seeking assistance from tax professionals or utilizing online resources to clarify any uncertainties.
So glad we all helped Ukraine, and other countries all over the world, and will continue to pay for decades to come with tax grabs like this.
I purchased and store precious metals. I buy them for my grandson every year. I buy him some gold and I buy him some silver, but I keep it and he will get it when he’s old enough or when I pass do I need to report any of that?
another reason to ask my grandpa to actually give me 50% of the money in our joint account!!! ;)
Why no mention of CRA waiving late filng penalties for the first year
Hi Tomie,
Thank you for bringing up the point about CRA waiving late filing penalties for the first year. It's indeed a significant aspect to consider, especially for individuals who might be concerned about potential penalties.
In our discussion regarding bare trust legislation, we aimed to focus on the core principles and implications surrounding this specific topic. However, you make a valid point, and highlighting the CRA's policy regarding late filing penalties could provide valuable insight for our audience.
We appreciate your input and will certainly consider incorporating this information into future discussions or communications.
Upure ok on rrsp but joint accounts are bare trusts best see an accountant has to be done by March 31 it's 150 to make a bare trust
Yep even co signing is a bare trust seen my accountant today
Of course the CRA wants to know all information regarding any and all asset activities
I have a joint account with my 93 year old mother. I also have her power of attorney for all her financial affairs. Since the POA essentially means that I act for her in all affairs, do I need to file the T3? Another way to think of this is does the POA take precedence of the joint nature of the account as I could perform all the same actions in the account using the powers of the POA and ignoring the joint nature of the account.
If you are a POA, a Bare Trust filing is not required. The definition of a POA is a legal document that allows you to ‘act’ on someone’s behalf. It does not allow the POA to access assets for themselves and be the beneficial owners of those assets.
@@precedenceprivatewealth2872
Thanks very much for the clarification
Dave Marshall
@@precedenceprivatewealth2872 But he says he has also has joint account with his Mom so doesn't that account require reporting.
My home is joint with my adult daughter who is living with me and we decide jointly. Do I still file a bare trust accounts.
Cecilia, in light of the new trust reporting rules effective for the 2023 tax year and your jointly owned property with your adult daughter, it's important to consider whether your situation falls under the purview of a bare trust. Under these regulations, more Canadians are required to file trust returns, particularly in cases of joint ownership between family members.
Given the complexity of tax regulations and individual circumstances, it's advisable to consult with your tax preparer or a qualified tax advisor. They can provide personalized guidance based on your specific situation and ensure compliance with the updated tax laws.
To determine if you need to file a trust return, you'll need to assess if a bare trust exists in your situation. If you jointly own assets with your daughter for specific purposes such as helping her secure a mortgage or facilitating estate planning, it's possible that a bare trust scenario is in effect.
Keep in mind any excluded reasons that may exempt you from filing, such as if the trust was in effect for less than three months or if the value of the joint asset doesn't exceed $50,000.
In summary, it's essential to seek professional advice to understand your obligations under the new trust reporting rules and ensure compliance with tax regulations. Consulting with a tax preparer or advisor can provide clarity and help navigate any complexities related to your jointly owned property and potential bare trust situation.
Yep joint account better get in an see an accountant by March 31 or you'll be penalizef
$50,000 bank account- at year end? Or at any time during the year?
Also what is a huge penalty? Is it a flat fee or a percentage of something? Thanks.
Great video.
Thanks for your question.
If the account exceeds $50,000 at any time during year, the bare trust must be filed.
Failure to make the required filings and disclosures on time attracts penalties of $25/day, to a maximum of $2,500, as well as further penalties on any unpaid taxes. New gross negligence penalties may also apply, being the greater of $2,500 and 5% of the highest total fair market value of the trust’s property at any time in the year. These will apply to any person or partnership subject to the new regime.
Are beneficiaries bare trust
@user-es8kf7ni6t
Beneficiaries of a bare trust are indeed the legal owners of the assets held within the trust. As such, they have the right to both the income generated by the trust's assets and the capital itself. This type of trust is often used in estate planning and asset protection strategies. Please consult with your tax professional for a specific recommendation.
I can’t see the attachment you are saying on the video.
Hi Jennifer, please email info@precedencewealth.com and I can send you a copy.
I have joint bank accounts and bank accounts with my mother in order to avoid probate. I also have POA. Do I have to file ??
This is a nightmare!
@@fritzsue I talked to my accountant and he said if you have POA then you do not have to file a T3.
What accounts?
My dother is beneficiary to my RSPP, my Gis and shi is joint on my bank acount in two vanks. What I shud report, ? Every acount, separatly. I pay tax on interest from this acount. Hu reporting me or her?
It's essential to reach out to your financial advisor regarding the reporting requirements for the various accounts where your daughter is listed as a beneficiary or joint account holder. They can provide tailored guidance based on your specific financial situation and ensure that you fulfill all necessary reporting obligations accurately. They will also be able to advise on who should report the income generated from these accounts, whether it's you or your daughter, considering the tax implications involved.
for an intrust minor investment account if the value is under 50k$. but it earned 1000$ in dividends is it exempt
2nd scenario wife has legal tittle to a family home.
i heard there were some interpretations that came out how do they effect these scenarios.
also i heard penalties are brig waived
Any joint accounts are bare trusts
so if you have a bare trust say like on your kids house for cosigning you have to pay tax?
No, I believe you just have to file the trust return (before April 2, 2024).
Beneficiaries on rrif rsp s are not bare trusts
This aged well, no thanks to the CRA.
Lack of trust horrible
Just found out cosigning is a bare trust Trudeau wants more money from us
Yep best give penalties in the thousands
The Trudeau govt should have still sent out info on this they can't be bothered
I thought Canada is free country my money is money
The cra should have sent paperwork out on this last year an also exlpain different situations this is crazy i also hsvd my income tax return done then i find out about this ?,
@user-es8kf7ni6t
It can certainly be frustrating to encounter unexpected tax-related matters, especially when it involves paperwork that should have been provided earlier. It's essential to stay informed about any changes or additional requirements from the CRA. If you have specific concerns or questions about your situation, it may be beneficial to reach out to them directly for clarification. They can provide guidance tailored to your circumstances.
www.canada.ca/en/revenue-agency/services/tax/trust-administrators/t3-return/new-trust-reporting-requirements-t3-filed-tax-years-ending-december-2023.html
No money everything, magical everything was😮grasped away
Is joint ownership of a home, husband and wife, a bare trust?
Invest minor inv best see an accountant thank Trudeau for grabbing more money off us
Damn girl
50000 for the year
Did anyone see the thumb nail and think "Bare ?r??sts" ?-