Accounting and Taxes Thread

[DoubleF]

Originally Posted by Fuzzy14

Happy News (heavy sarcasm), it looks like bare trust filings will be coming in for 2025.

The rule technically never went away and I was expecting this. Honestly speaking the biggest part is ensuring that the individuals know they have to be heavily involved and take point on the filing. Unlike other filings, they can't just tell a tax preparer to figure out it and take back seat, because a lot of this stuff doesn't show up/isn't associated with the tax returns. With the individual taking point, bare trusts are not much worse than a normal trust filing.

However, my true annoyance is that lawyers, registries and banks are much more likely to have this information, but the responsibility is a tax preparer for ensuring the CRA obtains this information? Why not get those guys to prep the info and/or to send to the info direct to CRA any time specific situation arises that CRA wants to know about for bare trusts, and then issue letters to taxpayers to file when they have enough evidence they think there's something they want to know more about?

[Strange Brew]

I think you're making this out to be more complex than it really is.

Deemed disposition technically occurs at the moment before death, before assets are transferred to the estate.

An executor who hires a tax accountant who doesn't inform them of the deemed disposition rules, doesn't question them as to why there is dividend income with no corresponding deemed sale and who doesn't describe the clearance certificate process hasn't received very good service. Not trying to throw anyone under the bus, and I don't even know if the poster hired a tax accountant.