S. 104(13.1) and (13.2) Elections to Tax Income in the Trust

The ELBEN form is used to make elections under subsections 104(13.1) and/or (13.2) to tax income or taxable capital gains in the trust even though the amounts were paid or payable to beneficiaries. This election might be used to take advantage of losses carried forward or unused credits in the trust.

On the ELBEN form, specify the portion of the allocated income that should be taxed in the trust. The ELBEN form will then apportion the total income reduction to the beneficiaries according to the rules laid out in ss. 104(13.1) and/or (13.2), and then compute the remaining income (for each income category) to transfer to the T3 slips (T3S). A beneficiary by beneficiary listing of the elections is printed for submission to the Canada Revenue Agency.

The amount that was elected pursuant to subsections 104 (13.1) and (13.2) will be displayed on line B of the T3 return (line B in the line 47 calculation).