Release Notes CCH iFirm Taxprep T3 2025 v.1.0 (2024.40.38.04)
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About CCH iFirm Taxprep
Welcome to CCH iFirm Taxprep, the first cloud-based professional tax software in Canada.
CCH iFirm Taxprep runs in your Web browser, with nothing to install on your desktop. Therefore, all updates will be automatically deployed during tax season.
Please note that CCH iFirm Taxprep is only supported on the Google Chrome and the Microsoft Edge (based on Chromium) Web browsers.
CCH iFirm Taxprep is bilingual and provides you with:
- Most robust tax calculations of the industry, imported from the Taxprep software programs;
- Comprehensive diagnostics with audit trail of user reviewed diagnostics;
- Ability to navigate through cells with data entered in the year;
- Ability to add review marks and comments;
- Intuitive user interface;
- and many more other features.
If you want to learn about the new non-tax related features delivered with this new CCH iFirm Taxprep version, consult the Technical Release Notes.
About CCH iFirm Taxprep T3
With CCH iFirm Taxprep T3, you have the most comprehensive collection of trust tax forms as well as tools designed to help you comply with requirements relating to the preparation of tax returns for trusts. CCH iFirm Taxprep T3 allows you to import data relating to beneficiaries in CSV format to speed-up data entry and reduce related input errors.
About
We are pleased to provide you with CCH iFirm Taxprep T3 2025 v.1.0. This version covers taxation years ending between January 1, 2024, and December 31, 2025, inclusive.
This version is made available for preparation purposes and allows you to work on your tax returns. Version 2.0, scheduled to be released on March 11, 2025, will allow you to EFILE and paper file your tax returns. Consult our Product Calendar for more information on our release dates.
The rates applicable to the 2025 taxation year are those known as of February 7, 2025. Any changes resulting from subsequent federal, provincial and territorial announcements will be integrated into future updates of the program.
You can view the applicable rates by accessing the Table of Values Used in the Return found in the program.
Electronic Filing
Government requirements
The threshold for mandatory electronic filing of information returns for a calendar year has been lowered from 50 to 5 for information returns filed after December 31, 2024. For the latest information about the penalty for not filing information returns over the Internet, go to canada.ca/mandatory-electronic-filing.
Electronic transmission of slips to the CRA
The CRA has made a number of changes to the process with respect to the electronic transmission of tax slips and summaries (XML transmission). For identification purposes, the preparer will now need to provide a CRA transmitter account number when using the My Business Account or Internet File Transfer services. The new transmitter account number should be entered in the subsection Internet file transfer identification (trusts, partnerships and slips) of the profile(s) in the section Electronic services identification of the Taxprep settings. A drop-down list will allow you to select the right account type from the following: the business number, the trust number and the non-resident number. You will then be able to enter the number corresponding to the selected type on line Federal transmitter account number (2024 and subsequent years). Note that the CRA accepts business numbers with 9 or 15 characters.
Electronic transmission of slips to Revenu Québec
The maximum number of XML files that can be transmitted per transmitter number for a given taxation year is 3,599. If the preparer reaches the maximum number of files for a given year, he or she will need to request a new transmitter number. Therefore, it is preferable to group slips together into a single file rather than transmitting one slip per file.
Important dates for Internet transmission
The CRA has been accepting electronic transmissions of T3 and NR4 slips since January 13, 2025.
Revenu Québec has been accepting transmission of RL-16 slips since November 2024.
The CRA has been offering the electronic transmission service for the T3 trust income tax and information return, as well as the T3M, T3S and T3RCA returns using T3 EFILE since March 2, 2022, and the T3P, T3D, T3GR, T3RI and T1061 returns since February 19, 2024. For updating purposes, the CRA closed the transmission service on January 31, 2025, and will accept the electronic transmission of T3 returns for the tax years 2024 and 2025 starting February 24, 2025.
Rolling Forward Files
CCH iFirm Taxprep T3 2025 allows you to roll forward client files saved with Taxprep for Trusts (with the .323 or .324 extension), Cantax FormMaster (with the .T23 or .T24 extension) and version 2024.5.5 of ProFile (with the.23R extension).
The taxation year after a roll forward cannot end after December 31, 2025. If needed, it will be shortened so as to correspond to the period covered by this version.
Version 1.0 Content
Changes to the capital gains inclusion rate
The Department of Finance has announced on January 31, 2025, that the changes to the capital gains inclusion rate would come into effect on January 1, 2026. The CRA has announced that it will reinstate the forms at the current rate (one-half) and publish them in the coming weeks. The forms and slips of this version reflect the changes in the capital gains inclusion rate to increase it to two-thirds. We will incorporate the changes to return to a one-half inclusion rate in a future release. If your file is affected by capital gains, we recommend that you wait for a future version or information from CRA to work on it.
Version 1.0 – Updated Forms
Federal
Preparer Profiles
The subsection Electronic filing of forms has been added to the EFILE tab to allow you to choose Form T1135 for electronic transmission.
Please note that the box for Form T1135 will be selected by default if you create a new profile or convert an existing one.
Capital gains inclusion rate modifications
As indicated in the Notice of Ways and Means Motion published on September 23, 2024, the capital gains inclusion rate for the 2024 taxation year has changed from 1/2 to 2/3 for capital gains and losses realized after June 24, 2024. For capital gains realized after June 24, 2024, an adjustment on the first $250,000 of net capital gains that acts as a reduction brings back the inclusion rate to 1/2 for graduated rate estates (GRE) and for qualified disability trusts (QDT).
Sections and lines have been added to a large number of forms in order to:
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Enter gains and losses from slips received by the trust realized before June 25, 2024, and after June 24, 2024;
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Separate gains and losses realized before June 25, 2024, from gains and losses realized after June 24, 2024;
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Calculate the inclusion rate based on gains and losses realized during the year;
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Calculate the reduction on capital gains for GREs and QDTs; and
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Calculate distributions related to capital gains realized before June 25, 2024, and after June 24, 2024.
Here is the list of affected forms:
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T3RET and schedules
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T1055
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T3 Slip
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T3 Income, T5, T5013
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ABIL
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Losses (CFS)
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Foreign Income (FORINC)
T3, Trust Income Tax and Information Return
Lines have been added and are included in the T3 return calculations. Lines 13, 251, 252 and 55 are calculated directly from Schedule 1, and line 80 is calculated from Schedule 10. Lines 12, 547 and 881 should be entered manually, as Form T1098 and Schedule 130 will be added to a subsequent version of the program. All lines will be used in EFILE when it becomes available.
Schedule 10, Part XII.2 Tax, Part XIII Non-Resident Withholding Tax, and Part II.2 Tax on Repurchases of Equity
New Part C is used to calculate the Part II.2 tax ITA that applies to a real estate investment trust as defined in subsection 122.1(1), a specified investment flow-through (SIFT) trust or a trust that would be a SIFT trust (other than a mutual fund trust with a class of units in continuous distributions) if its assets were situated in Canada, that has its units representing an income or capital interest in the trust listed on a designated stock exchange at any time in the taxation year. The transactions must have occurred after December 31, 2023. This additional tax is calculated by multiplying by 2% the net value of the trust’s repurchases of equity during the year.
However, if the amount on line 50 does not reach the minimum threshold of $1 million (prorated based on the number of days in the taxation year if it consists of less than 365 days), the Part II.2 tax will be zero on line 53.
Schedule 11, Federal Income Tax
Lines 11101 and 11102 have been added to Part Step 2 – Federal tax. They are used to enter the amount of the labour requirements addition to tax and the recapture of the investment tax credit related to Form T1098, Clean technology investment tax credit (this form is not available in this version).
Schedule 12, Minimum Tax; and
TP-776.42.F, Alternative Minimum Tax of a Trust
Schedule 12 and Form TP-776.42.F are not available in the current version of the program, and a diagnostic has been added to warn tax preparers that they will have to wait for a subsequent version of the program to file trust returns impacted by the minimum tax changes. However, the minimum tax exemptions for several types of trusts have been added and are automatically calculated according to the type of trust selected.
Schedule 15, Beneficial Ownership Information of a Trust
Part B of Schedule 15 has been divided into multiple distinct forms to simplify the management and the display of reportable entities on screen. These new forms retain the same layout as Part B and are accessible from the Form Manager as well as from Schedule 15. Note that Schedule 15 and its printing have not been modified. Due to this modification, it is now possible to easily navigate through various entities of the same type by using the drop-down menu at the top of the new forms.
In Part B, the tax identification number is now divided into several fields: social insurance number (SIN), business number (BN), temporary tax number (TTN), trust account number (TN) and individual tax number (ITN). If you have entered a number in a previous version of the program, it will be transferred to the correct field according to the tax identification type selected.
T3 slip, Statement of Trust Income Allocations and Designations
A section that allows beneficiary information to be imported through the Import slips function has been added to the data entry screen of the T3 slip. In addition, an option that manages the way this section is displayed has been added to the form and to the preparer profile.
T3 slip, Statement of Trust Income Allocations and Designations; and
RL-16 slip, Trust Income
The CRA has added boxes 52 to 59 to the T3 slip to separate amounts related to capital gains, capital gains eligible for deduction from dispositions of QFFP, capital gains eligible for deduction from dispositions of QSBCS and insurance segregated fund net capital losses realized before June 25, 2024, and after June 24, 2024. The amounts displayed in these boxes are reported in the other information. We have also added custom boxes to show the amounts of split income before June 25, 2024, and after June 24, 2024. This information can be found in the Footnotes section of the T3 slip.
Revenu Québec has modified the descriptions of boxes A-2 to A-4 and H-1 to H-3 and has added boxes A-5 to A-9 and H-4 to H-10 to separate amounts related to capital gains, split income, capital gains eligible for deduction from dispositions of QFFP, capital gains eligible for deduction from dispositions of QSBCS and capital gains eligible for deduction related to a qualifying business transfer to an employee ownership trust realized before June 25, 2024, and after June 24, 2024. The amounts displayed in these boxes are reported in the additional information.
If you have prepared T3 slips and/or RL-16 slips for the 2024 year with a previous version of the program, it is strongly suggested that you review them before producing them.
Client Letter Worksheet
Changes have been made to the calculation of filing and balance due dates in Letter C. Filing and balance due dates are now calculating correctly when the ninetieth day following the taxation year-end falls on a Saturday or a Sunday. In addition, these dates can now be entered in the preparer profile. This makes it possible to quickly change the dates for all returns linked to that preparer profile. Finally, please note that if a filing or a balance due date is entered, that date will be indicated in Letter C of all returns using this preparer profile, regardless of the trust's taxation year-end date.
Country list
From now on, when the country entered is Other, the three-letter code OTH will appear instead of OMC. This change affects Form T1135, but also Forms BENEF, Identification and T1134, among others.
RC4649, Country-by-Country Report
In Part II, CbC reportsection, an explanation clarifying the purpose of the permanent establishment designation has been added under line Permanent establishment of subsection 2, List of all the constituent entities of the MNE group included in each aggregation per tax jurisdiction. If the constituent entity is a permanent establishment, the tax jurisdiction of the legal entity of which the permanent establishment is a part should be specified. For more information, consult the Determining if the constituent entity is a permanent establishment subsection of the help topic RC4649 – Country-by-Country Report.
T3-RCA, Retirement Compensation Arrangement (RCA) Part XI.3 Tax Return
Section Step 3 – Specified refundable tax has been added to the form. This section must be completed if the trust is a specified arrangement under which an eligible employer is electing under subsection 207.71(2) ITA. In addition, it is possible to request that the refund for the credit of specified refundable tax to be issued directly to the employer.
T1055, Summary of Deemed Dispositions
The following changes have been made to the form:
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Lines 10A, Line 10 amount – deemed dispositions which occurred on or before June 24, 2024 (Period 1), and 10B, Line 10 amount – deemed dispositions which occurred after June 24, 2024 (Period 2), have been added.
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The question on line 55800 has been added to section Calculation for election on Form T2223, Election, Under Subsection 159(6.1) of the Income Tax Act, by a Trust to Defer Payment of Income Tax. Lines 24 and 27 will be calculated only if the answer to this question is Yes.
T1135, Foreign Income Verification Statement
The electronic transmission of Form T1135 will not be available until version 2025 v.3.0. Nevertheless, to enable the electronic transmission of this form, certain elements have been modified in this version of our program.
The section For the accounting firm internal use only has been replaced by the questions Your firm has not been engaged to file Form T1135* and Form T1135 will be transmitted or paper-filed at a later date (no later than the filing deadline for the income tax return)*.
To enable you to select the form for electronic transmission, the section Electronic transmission has been added to the top of the form. At the bottom of this section, you will find the electronic filing status. When this is set to Eligible, you can transmit Form T1135. Please refer to the diagnostics to complete the form correctly.
In the Identification section, the province (or territory) is now presented separately from the city. Also, when the country in the reporting entity's address is a country other than Canada or the United States, the field must be filled in by the preparer.
In the Certification section, the field that included the signatory's name has been split into two separate fields, First Name and Last Name. As a result, the former value will not be retained. In addition, the signature date must now be entered on every Form T1135.
The section T1135 has been added to Form EFILE Information. It contains key information relating to the electronic filing of Form T1135.
If you have completed this form using a previous version of the program, we strongly advise you to review it before producing it.
Québec
Capital gains inclusion rate modifications
As indicated in the Information bulletin 2024-5 published on April 18, 2024, Québec is harmonizing with the federal capital gains inclusion rate modifications as well as with the related correlative measures.
Sections and lines have been added to a large number of forms in order to:
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Enter gains and losses from slips received by the trust realized before June 25, 2024, and after June 24, 2024;
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Separate gains and losses realized before June 25, 2024, from gains and losses realized after June 24, 2024;
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Calculate the inclusion rate based on gains and losses realized during the year;
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Calculate the reduction on capital gains for GREs and FAPHs; and
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Calculate distributions related to capital gains realized before June 25, 2024, and after June 24, 2024.
Here is the list of affected forms:
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TP-646 and schedules
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TP-653
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RL-16 slip
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QC ABIL
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QC Losses
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QC Forinc
TP-646, Trust Income Tax Return
Several changes have been made to this form, including:
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At question 13, former line 13b, which contained the date on which the trust became resident of Canada, and former line 13c, which contained the date on which the trust became non-resident of Canada, have been combined into one line (13.1a).
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At question 32, fields have been added for the adjusted cost base and for the paid-up capital of shares in a private corporation.
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Lines 53.1, 53.2 and 53.3 have been added for the capital gains reduction.
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Lines 69a and 69b have been added for business investment losses sustained before June 25, 2024, and after June 24, 2024.
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Line 98.2 has been added for the adjustment of the capital gains reduction.
Please note that a new form, TP-21.4.39, Cryptoasset Return, has been published by Revenu Québec. If you answered Yes to question 31 of Form TP-646, it is required to file this form. Form TP-21.4.39 is not available in this version of CCH iFirm Taxprep T3 and will be included in a future version of the program. If you are required to file this form, please print and complete the form published by Revenu Québec.
TPF-1026.0.1.P, Remittance Slip
The TPF-1026.0.1.P remittance slip must be used for all balances payable of $10,000 or less. In addition, since January 1, 2024, balances payable in excess of $10,000 must be paid electronically. This type of payment can be made using the online banking services offered by the trust's financial institution. To do so, the trust must select the Revenu Québec – Payment Code invoice in the financial institution's online service and use the payment code shown on the remittance slip. If the trust fails to pay electronically, a penalty may apply.
The Filing- Production (Québec) letter has been amended to include these clarifications.
British Columbia
T3BC, British Columbia Tax
Line British Columbia qualifying environmental trust tax credit has been removed from section Step 3 – British Columbia tax.
Manitoba
T3MB, Manitoba Tax
Line 14, Manitoba recovery tax, has been added in Step 3 – Manitoba Tax. As a result, subsequent lines have been renumbered.
Prince Edward Island
T3PE, Prince Edward Island Tax
The table to calculate tax on taxable income has been extended from three to five levels. In addition, the line to calculate the surtax has been removed.
Version 1.0 – Forms under review
The following forms are presently under review. They are labelled Under Review on screen and include a Do not submit watermark when printed:
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T3D, T3M, T3S, T3P, T3GR and T1061 returns
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T3QDT election form and T3QDTWS worksheet
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At the CRA's request, the T3 return, Schedules 1, 9, 10 and 12 as well as Forms T184 and T1055
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At Revenu Québec’s request, the TP-646 return and its schedules
Version 1.0 – Corrected Calculations
The following problem has been corrected in this version:
Federal
Where to Find Help
This version provides the following help resources:
- List of available keyboard shortcuts;
- eHub training videos.
To access the Help or to submit a suggestion or idea regarding the product, click the following icon in the top right portion of the screen:
