02/13/2024
IMPORTANT TAX ANNOUNCEMENT!
From our friends at Empire CPA
BARE TRUST REPORTING – DOES THIS APPLY TO YOU?
A Bare Trust is required to file a T3 Trust Return under the new expanded filing requirements on or before April 2nd, 2024, for the 2023 tax year, to avoid any gross negligence penalties.
A Bare Trust commonly exists – whenever a person is on the legal title of a property(ies) but is not the true beneficial owner of the property(ies). The beneficial owner is the person who is entitled to proceeds from the property. The property could include real property, bank accounts, investment accounts, gold or silver coins, and any other property that you can trade for money or other considerations.
Unsure if you have a Bare Trust? If you answer "YES" to any of the following questions, then a Bare Trust exists.
1.) Are you listed on a bank account on behalf of someone else i.e. parent, child, grandchildren, corporation?
2.) Are you listed on an investment account on behalf of someone else i.e. parent, child, grandchildren, corporation?
3.) Are you listed on the legal title of a real estate property on behalf of someone else i.e. parent - for Estate planning purposes only?
4.) Are you listed on the legal title of a real estate property on behalf of someone else i.e. child - for financing purposes only?
5.) Are you listed on the legal title of a real estate property on behalf of a corporation, partnership, joint venture, another Trust?
6.) Are you listed on the legal title of a real estate property on behalf of your spouse or common-law partner?
7.) Are you listed as the owner of a vehicle on behalf of someone else i.e. parents, children, grandchildren, corporation?
8.) Are you holding ANY other property on behalf of someone else i.e. parent, child, grandchildren, corporation?
9.) Are you a member of Joint Venture holding property on behalf of the Joint Venture or other joint venturers?
10.) Are you a member of Partnership holding property on behalf of the Partnership or other partners?
