Data entry and flow in ProFile T3

There are some key T3 forms to be mindful of when completing a trust return.

Beneficiary form

Use the Beneficiary details form to enter information for trust beneficiaries. Amounts flow from the Beneficiary details form to the corresponding T3, NR4 and RL16 slips. ProFile also uses the Beneficiary details form to complete Schedule 9 in the trust return.

Allocation worksheet

Use the Allocation worksheet to indicate how the trust allocates income to beneficiaries. If the trust is claiming expenses at line 41 of the return, apply the expenses to specific types of income before allocating income to the beneficiaries. The trust gets a deduction on the T3 jacket for income that is allocated to the beneficiaries.

Some of the trust income may be taxed in the trust. Specify for each type of income the amount that the trust will retain. ProFile displays the remaining income as the amount to be allocated to the beneficiaries.

On the Allocation form, preparers may also need to enter certain T3 slip amounts, such as a retiring allowance, death benefit, or foreign business income.

1.  Enter general information, trust type and other basic details of the trust on the Info form.
2. Report the income and deductions of the trust. Enter these details on the various income and deductions forms, schedules and also on the T3 Jacket  (which has some edit fields with no supporting schedules). There are numerous data entry forms, for example, business and rental statements, dispositions on Schedule 1, and T3, T5 income received by the trust.
3. If the trust is allocating income to its beneficiaries, then the forms in the Beneficiaries tab of the Form Explorer become important.
4. Any income not allocated to beneficiaries is taxed on Schedule 11, which transfer to page 4 of the T3 jacket.
5. Allocation is a worksheet used to complete the slip amounts for beneficiaries.

Use this worksheet:

• To indicate how you wish income to be allocated to the beneficiaries - the default is each one gets an equal share of the income. If that isn't the case, choose Other and enter the percentage applicable to each beneficiary on the Beneficiary details worksheet. If Other is chosen, the percentage field on each slip of the Beneficiary worksheet becomes an input field. Otherwise, it's calculated based on equal allocation to all beneficiaries.
• If the trust has claimed expenses at line 41 of the return, the expenses have to be applied to specific types of income before the income can be allocated to a beneficiary. You must apply these expenses manually (an audit message will appear if you have not entered these expenses).
• To retain some of the income to be taxed in the trust. You can specify which type of income and how much is to be retained by the trust.
• To specify amounts for certain boxes of the T3 slips that is not automatically completed by ProFile T3. For example, details related to foreign income and tax paid. Also, if the trust is allocating a retiring allowance or death benefits, those amounts have to be specified here.

6. On the Beneficiary worksheet, enter details such as name, address and residency of the beneficiary. The slip amounts at the bottom of this form are calculated using amounts from the Allocation worksheet multiplied by the percentage applicable to the particular beneficiary (% is on the Beneficiary worksheet).

On forms like Beneficiary, where there are an unlimited number of slips, what are some easy ways to move around? With the mouse, use the horizontal scroll bar at the top of the slip table. With the keyboard, <Ctrl+Enter> will take you to the top of the next slip, <Shift+Ctrl+Enter> will take you to the previous slip. <Ctrl+RightArrow> and <Ctrl+LeftArrow> will take you to the next or previous column (and scroll to the next or previous slip accordingly).

7. The information on the Beneficiary worksheet will transfer to the T3 and NR4 slips. These slips are for reporting and preview purposes only - you cannot edit data on these forms.
8. The data from the T3 and NR4 slips is posted to the T3 Summary and NR4 Summary.
9. Schedule 9 is a summary of the amounts allocated/designated to the beneficiaries. ProFile completes this form using the amounts from the Beneficiary worksheet. The trust gets a deduction for the total income allocated to beneficiaries at line 928 of this schedule.
10. Review the T3 jacket and manually enter data into any fields not automatically calculated by ProFile T3 (especially the questions on the first two pages).