Release Notes CCH iFirm Taxprep T3 2026 v.1.0 (2025.40.40.03)

Overview – Version 2026 1.0

The following forms have been added to CCH iFirm Taxprep T3 2026 v.1.0:

• Schedule 130, Excessive Interest and Financing Expenses Limitation;

• TP-21.4.39, Cryptoasset Return;

• TP-80.AP, Farming Income and Expenses; and

• TP-1079.8.BE, Foreign Property Return

Furthermore, the modifications related to federal Bill C-15 that concern the capital cost allowance have been implemented in this version.

Note: The Canada Revenue Agency (CRA) has informed us that further changes will be made to the calculation of CCA in certain tax forms (T776, T2042 and T2125). Pending the release of final versions, the CRA has asked us to place a Under Review watermark on each of the forms mentioned above. The equivalent Québec forms are also being reviewed. These forms will be available for filing in the next version of the program, which will be available in early March.

 

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.

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Essential Program Information

This version covers taxation years ending between January 1, 2025, and December 31, 2026, inclusive.

The rates applicable to the 2025 taxation year are those known as of February 6, 2026. 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.

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Version 1.0 Content

Version 1.0 – New Forms

Federal

Schedule 130, Excessive Interest and Financing Expenses Limitation

This schedule must be completed by any trust that is subject to the excessive interest and financing expenses limitation rules or that is a party to any election under these rules. The main provisions for these rules are paragraph 12(1)(l.2), sections 18.2 and 18.21, and clause 95(2)(f.11)(ii)(D) of the ITA.

In Part 2E, Adjusted taxable income (ATI), certain lines are calculated based on the data entered in other schedules of the return. For details regarding these calculations, consult the Help.

In order to apply the excessive interest and financing expenses limitation rules, certain amounts calculated in Schedule 130 are reported in other forms of the return, namely:

• The amount on line 535, which corresponds to the excess interest and financing expenses under subsection 18.2(2) ITA and to the add-back amount of partnership interest and financing expenses under paragraph 12(1)(l.2) ITA, is reported to line 12 of the T3 return;

• The amount on line 537, which corresponds to the restricted interest and financing expenses of previous tax years applied in the tax year, is reported to the field Restricted interest and financing expenses (RIFE) from previous years in section Other deductions for computing taxable income (line 54) of Form Other Income and Deductions. This amount is subsequently reported to line 547 of the T3 return.

 

Québec

TP-21.4.39, Cryptoasset Return

Form TP-21.4.39 is a mandatory reporting form for taxpayers that, in a taxation year, own, acquire, dispose of (sell, transfer, trade, donate, etc.) or use cryptoassets. Capital gains (or losses), business income, rental income and interest income from cryptoassets must be reported by type of cryptoasset. The taxpayer may incur penalties if he or she does not meet the obligations set out in Form TP-21.4.39.

Fields have been added to Part Bonds, debentures, promissory notes, crypto-assets, and other similar properties of Schedule 1 and Form T1055 to identify the gains (or losses) from cryptoassets. This information is carried to section 4.1 of Form TP-21.4.39. The column Virtual currency transactions (Québec only) as well as fields Virtual currency name, Number of units and Method of disposition have been removed from schedule 1.

In addition, lines have been added to Schedule 8 to identify interest income from cryptoassets. This information is carried on the QC OID form and to section 4.3 of the form.

The section Cryptoassets – Québec has been removed from Form Identification.

When opening a client file prepared with a prior version of CCH iFirm Taxprep T3, the values entered on lines 65, 111, 112 and 135 in section Cryptoassets – Québec will be retained as overridden values on the respective lines of Form TP-21.4.39. Relevant diagnostics will advise you to complete the parts of the form correctly.

TP-80.AP, Farming Income and Expenses

From now on, farming income and expenses should be reported on the new Form TP-80.AP to complete the Québec trust income tax return. This form replaces prior Form Q2042, which was only a copy of the federal Form T2042. The layout and calculations on Form Q2042 have therefore been modified to comply with the new Form TP-80.AP, with sections being completely redesigned and several lines being removed or combined.

Farming income and expenses entered on the copies of the form are reported to the TPF-646.Y2 keying summary.

Note: Although Form TP-80.AP includes parts to calculate the income and expenses of a fishing business, only the parts and calculations relating to farming businesses can be found in the form, as federal Form T2121, Statement of Fishing Activities, is not supported by the program.

TP-1079.8.BE, Foreign Property Return

This form is equivalent to Form T1135 for Québec.

The information entered in Form T1135 is reported into Form TP-1079.8.BE.

For more information, consult the Help.

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Version 1.0 – Deleted Forms

Québec

Schedule A.1, Election for Certain Trusts Regarding Taxable Capital Gains

In the Information Bulletin 2025-8 published on November 25, 2025, the Ministère des Finances has announced its harmonization with the cancellation of the increase in the capital gains inclusion rate that had been confirmed by the federal government in its November 4, 2025, budget. As a result, the election for certain trusts, other than personal trusts, to produce Schedule A.1 no longer applies. Therefore, this schedule has been removed from the program.

Following the removal of Schedule A.1, changes have been made to the following forms:

• Schedule D

• Invoice

• Invoice Profile (BILL tab in the preparer profile)

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Version 1.0 – Updated Forms

Federal

Capital gains inclusion rate modifications

On March 21, 2025, the Government of Canada indicated that it would not go forward with the planned increase of the capital gains inclusion rate. The capital gains inclusion rate will remain at 50% As a result, the following forms have been updated to remove the periods before June 25, 2024, and after June 24, 2024:

• T3RET and schedules

• T1055

• T3 Slip

• T3 Income, T5, T5013

• ABIL

• Losses (CFS)

• Foreign Income (FORINC)

The government also announced that it would keep the increase of the Lifetime Capital Gains Exemption limit, effective June 25, 2024. If the trust had a disposition of qualified farm or fishing property (QFFP) or of qualified small business corporation shares (QSBCS), additional information on the date of the disposition can be provided in the notes of the T3 Tax Slip.

A custom question has been added at the top of Schedule 2 to indicate whether the tax year that includes June 25, 2024, ended in 2025. The cell is calculated using the history of tax years and is relevant for displaying the T3 slip notes that require to distinguish dispositions that occurred before June 25, 2024, and those that occurred after June 24, 2024. If the option Yes is selected, the distinction applies to eligible capital gains of 2025; otherwise, it applies to eligible capital gains of 2024.

Information that was entered on the forms prior to the update and on the lines related to the period before June 25, 2024, will not be retained, unless it was carried forward from the previous year. It is recommended that preparers do a backup of any information that they wish to keep before updating to the new version.

Modifications to the CCA calculation related to Bill C-15

Following the changes proposed in Bill C-15 introduced in the House of Commons on November 18, 2025, the CRA has updated the income and expense statements in which capital cost allowance (CCA) is calculated, notably to take into account the rules for re-accelerated investment incentive property (RIIP) and the new adjustment factors applicable to them. Certain rules relating to accelerated investment incentive property (AIIP) have also been amended.

As a result, the CCA calculation tables in Forms T776, T2042 and T2125 as well as the underlying custom forms used to calculate CCA have been updated to reflect the calculations for AIIP and RIIP.

Note: The Canada Revenue Agency (CRA) has informed us that further changes will be made to the calculation of CCA in certain tax forms (T776, T2042 and T2125). Pending the release of final versions, the CRA has asked us to place a Under Review watermark on each of the forms mentioned above. The equivalent Québec forms are also being reviewed. These forms will be available for filing in the next version of the program, which will be available in early March.

Revenu Québec has confirmed that the amendments included in Bill C-15 also apply to the corresponding Québec income and expense statements. As such, since the CCA calculation tables in Forms TP-80, TP-80.AP, TP-128.F and Schedule F will not be updated for the 2025 tax year, only the calculation in columns 9, Capital Cost Allowance, and 10, UCC at the end of the year, is performed correctly, taking into account the calculations for RIIP.

Changes related to the addition of depreciable property classes

The following capital cost allowance classes are now available in the program:

• Class 1.4 (10%): New purpose-built residential rental property if construction began after April 15, 2024, and before 2031;

• Class 57 (8%): Equipment in a CCUS project – CO2 capture, transport or storage;

• Class 58 (20%): Equipment in a CCUS project – Use of CO2 in industrial production;

• Class 59 (100%): Intangible property acquired to determine the existence of a geological formation to store captured carbon;

• Class 60 (30%): Intangible property acquired to prepare a well to store captured carbon.

Therefore, Forms T776, T2042, T2125, T1055 and Schedule 130 allow you to select either of these classes when necessary. The added classes are also available in the equivalent Québec forms, namely Forms TP-80, TP-80.AP, TP-128.F, TP-653 and Schedule F.

Schedule 1A, Capital Gains on Gifts of Certain Capital Property

Line 1513, Total of deemed capital gains on the donation of a flow-through share (FTS) class of property included on Schedule 1, has been added.

Schedule 12, Minimum Tax

Following the changes proposed in Bill C-15 introduced in the House of Commons on November 18, 2025, line 6, Amount from line 5 of the Schedule 1A, and line 35, Investment counsel fees under paragraph 20(1)(bb) (included at field 21 of the T3 return), have been added to Part 1 – Calculating net adjusted taxable income for minimum tax. The numbering of the lines on the form has therefore changed.

Schedule 15, Beneficial Ownership Information of a Trust

Bill C-15, tabled on November 18, 2025, introduces several changes impacting trust reporting requirements.

Among other changes, the definition of a bare trust has been modified. As a result, bare trusts are not required to file a T3 return for years ending on December 31, 2024, or in 2025. The applicability of Schedule 15 has therefore been modified so that bare trusts with a taxation year ending before December 31, 2026, are not required to complete Schedule 15.

In addition, the conditions under which a trust is exempt from filing an information return have been expanded. The applicability of the schedule has been adjusted accordingly. For this purpose, questions 18 and 19 have been added to the Trust Identification and Other Information form.

• When the user answers Yes to question 18 and the trust's taxation year ends after December 30, 2025, the trust does not have to file Schedule 15.

• When the user answers Yes to question 19, the trust does not have to file Schedule 15.

Please refer to Guide T4013 T3 – Trust Guide for more details.

T3, Trust Income Tax and Information Return

The T3 return has been updated to include questions 18, 19 and 20. These questions, like the ones that precede them, must be answered in each T3 return.

In addition, line 925, Manitoba cultural industries printing tax credit, and line 926, Manitoba rental housing construction incentive tax credit, have been added to the return.

These input lines and questions are included in the electronic transmission of the T3 return.

T3A, Request for Loss Carryback by a Trust

The lines Non-deductible or add-back amounts of interest and financing expenses (from line 11 of the T3 return) and Restricted interest and financing expenses of other years (from line 41 of the T3 return) have been added to Section 1 – Non-capital loss.

T3AO, Remittance Voucher – Amount Owing

Note: Please note that the T3AO remittance voucher, which was previously available in CCH iFirm Taxprep T3 for reference purposes only, can now be printed and used to accompany a payment.

The T3AO remittance voucher allows a trust to make a payment to the CRA through a variety of payment methods. It can be used to make a payment in person at a Canadian financial institution or, for a fee, at a Canada Post outlet. The QR code printed on the remittance voucher contains all the information required to make a cash or a debit card payment at a Canada Post outlet. If the payment is sent by mail, the remittance voucher should be attached to a cheque or a money order payable to the Receiver General and sent to the following address: Canada Revenue Agency, P.O. Box 3800, Station A, Sudbury, Ontario P3A 0C3.

T3-RCA, Retirement Compensation Arrangement (RCA) Part XI.3 Tax Return

Following changes regarding trust reporting requirements, modifications have been made to the form. In step 1, question 11 has been modified to include supplementary pension plans. The exemption for supplementary pension plans applies to trusts whose taxation year ends after December 30, 2025. In addition, question 13 has been added. When the user answers Yes to this question and the taxation year of the trust ends after December 30, 2025, the trust is not required to file Schedule 15. The applicability of Schedule 15 has been modified to reflect these changes.

T1061, Canadian Amateur Athlete Trust Group Information Return

Question 3 has been added to section Beneficial ownership information requirement following the expansion of the exemption criteria.

T1141, Information Return in Respect of Contributions to Non-Resident Trusts, Arrangements or Entities

In section 1, Reporting person information, of the return, a box for joint filed elections has been added. You can also indicate the number of joint elections made.

Previous section C, Settlors of the trust, arrangement or entity, is now included in section A. Additional information is now required for each settlor entered in this section. In section A, a foreign jurisdiction tax identification number as well as the date the trust, the arrangement or the entity was created must now be entered. General questions about the trust, the arrangement or the entity have also been added to the bottom of the section.

For each contribution or distribution in section D, Information on transactions and balances, it is now required to indicate whether the property is taxable Canadian property by answering the new question to that end.

In sections A to D, you must now confirm that the information entered can be supported with supporting documents. Questions for this purpose have been added to the bottom of the sections.

Finally, in section F, Attachments, new choices of supporting documents are indicated.

If you have completed this form with a previous version of the program, it is recommended that you review the content before filing it.

T1142, Information Return in Respect of Distributions From and Indebtedness to a Non-Resident Trust

Form T1142 has been updated to collect more detailed information on non‑resident trusts and their settlors.

Additional details about the non‑resident trust and its settlors are now requested in section A, and questions regarding the administration of the non‑resident trust have been added to this section.

Boxes have been added to sections A, B and C to confirm that supporting documents related to the information provided are available.

Section D now allows filers to confirm that supporting documents related to sections A, B or C are attached to the form.

Finally, the Japanese yen has been added as a functional currency.

T5013, Statement of Partnership Income

The following lines have been removed from columns T5013 and RL-15 of the form:

• 272, Business investment loss – before June 25, 2024;

• 273, Business investment loss – after June 24, 2024;

• 030¹, Capital gains (losses) – before June 25, 2024;

• 030², Capital gains (losses) – after June 24, 2024;

• 151¹, Non-qualifying capital gains (losses) – Partnership fiscal year-end before June 25, 2024;

• 270, Deemed capital gains (losses) – before June 25, 2024;

• 271, Deemed capital gains (losses) – after June 24, 2024; and

• 279, Capital gains reserve – after June 24, 2024.

Line 151² is now line 151 and has been renamed Non-qualifying capital gains (losses). In addition, line 159 has been renamed Capital gains reserve. Finally, line 176 has been renamed Foreign resource expenses.

When opening a client file prepared with a prior version of CCH iFirm Taxprep T3, if the taxation year entered on Form T5013 is 2025, verify if adjustments are necessary following line withdrawals and changes.

Client Letter Worksheet

Boxes TP-21.4.39, TP-646 and TP-1079.8.BE have been added to section Québec – Paper filed return. These boxes are used to determine the paragraph(s) to include in the letter Trust Return Filing Instructions. Please note that these boxes are automatically selected in the relevant section when the form in question is applicable.

Other Income and Deductions

The field Restricted interest and financing expenses (RIFE) from previous years has been added to section Other deductions for computing taxable income (line 54). This field indicates the value entered on line 537 of Schedule 130 and its value is reported to line 547 of the T3 return.

Invoice

As a result of the implementation of Schedule 130, the field Schedule 130 – Excessive interest and financing expenses limitation has been added to section Federal return and schedules.

Summary of Carry-Forward Balances

As a result of the implementation of Schedule 130, section Schedule 130 has been added to allow you to quickly access the restricted interest and financing expenses balance from prior years.

 

Québec

Schedule A, Taxable Capital Gains and Designated Net Taxable Capital Gains

The subsection Shares involved in a qualifying business transfer or a qualifying cooperative conversion in Schedule A has been updated to include qualifying cooperative conversions. If the gain (loss) arises from a qualifying cooperative conversion into a worker cooperative, box 203.2 must be selected. Line 203.6 and the new line 203.7 must be completed. If the gain (loss) arises instead from the qualifying business transfer to an employee ownership trust, box 203.1 must be selected and lines 203.6, 203.8 and 203.9 must be completed.

When opening a client file prepared with a prior version of CCH iFirm Taxprep T3, box 203.1 is selected if a non-zero value was calculated in column D of the same line.

Schedule F, Income Tax Payable by a Specified Trust for a Specified Immovable; and

Income Earned by a Trust From the Rental of Immovable Property

With the update of these forms, the calculation of net rental income before capital cost allowance has been modified to exclude expenses attributable to non-compliant short-term rentals.

There are several changes to Part Net rental income (or net rental loss) before capital cost allowance, including:

• The addition of a line to identify income from short-term rentals. When the form is applicable, this amount is equal to the amount on line 8140 of Form T776. A diagnostic informs the user that data from Form T776 was used to complete Schedule F and/or Form TP-128.F, even though the laws governing short-term rentals in Québec differ from those prescribed by the CRA. The user must verify whether adjustments are necessary.

• The addition of column C, Portion attributable to short-term expenses, to the expense table. When the form is applicable, the values in this column are calculated based on the inputs of the Short-term rental portion of total expenses column in Part 4 of Form T776.

• For Schedule F, line 623 has been modified. This amount is now equal to the total of column 6 in the table of the new Part 8.1. Also, lines 623.1 and 623.2 have been added to calculate the subtotal.

• For Form TP-128.F, line 23 has been modified. This amount is now equal to the total of column 6 in the table of the new Part 5.1. Also, lines 23.1 and 23.2 have been added to calculate the subtotal.

When opening a client file prepared with a prior version of CCH iFirm Taxprep T3, the overridden amounts in column A of the expense table are retained. If overrides were made by the user to exclude non-compliant expenses, he or she will need to verify the data and make adjustments as necessary.

In addition, Part Non-compliant short-term rental expenses has been added to the forms. When the forms are applicable, this part is completed using the information entered in tables A and B of Form T776. The Add and Delete buttons are available because the laws governing short-term rentals in Québec differ from federal laws.

Finally, Part Capital cost allowance has also been modified. Column 9 now represents CCA before adjustment for non-compliant short-term rental expenses. Columns 9.1, CCA for non-compliant short-term rentals, and 9.2, CCA, have been added. Capital cost allowance corresponds to the total in column 9.2.

LM-15, Voluntary Disclosure

Revenu Québec’s postal address has changed. From now on, send your documents to the following address:

Direction principale des divulgations volontaires, du recouvrement international et de l'évolution des savoirs
Revenu Québec
Complexe Desjardins, secteur MT1203
C. P. 5000, succursale Place-Desjardins
Montréal (Québec)  H5B 1A7

TP-646, Trust Income Tax Return

Changes have been made to remove lines related to the capital gains reduction and the separation of gains realized and losses sustained before June 25, 2024. Additionally, section 5.41 has been added to provide details on beneficiaries that cannot be listed at the time of filing.

TP-668.1, Taxable Capital Gains of a Trust That Give Entitlement to a Deduction

Changes have been made to remove lines related to the capital gains reduction and the separation of gains realized and losses sustained before June 25, 2024.

TP-1129.53, Income Tax Return for Environmental Trusts

Lines have been added to section 3.4 to provide details on beneficiaries that cannot be listed at the time of filing.

 

Manitoba

T3MB, Manitoba Tax; and
T3MJ-MB, Part 3 – Manitoba Tax (Multiple Jurisdictions)

Former line 16, Family tax benefit, and former line 17, Subtotal, have been removed from section Step 3 – Manitoba Tax. As a result, subsequent lines have been renumbered.

 

Yukon

T3YT, Yukon Tax; and

T3MJ-YT, Part 3 – Yukon Tax (Multiple Jurisdictions)

The section Line 19 – Minimum Tax Carryover has been added to provide details of the minimum tax carryover calculation.

 

Nova Scotia

T3NS, Nova Scotia Tax; and

T3MJ-NS, Part 3 – Nova Scotia Tax (Multiple Jurisdictions)

On line 13215, the tax credit rate for dividends other than eligible dividends has been reduced from 22.94% to 11.50% as of January 1, 2025.

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Version 1.0 – Corrected Calculations

The following problems have been corrected in this version:

Federal

• Schedule 11 and Schedule 11A – For a taxation year ending in 2025, the tax rate for the first federal taxation bracket is incorrect

Québec

• TP-776.42.F – Line 121 of Form TP-776.42.F is calculated with line 50 of the TP-646 return instead of line 50 of Form TP-776.42.F

Manitoba

• The Government of Manitoba has abolished the family tax benefit for trusts in 2025, but this tax benefit is still calculated in the T3MB and T3MJ-MB forms

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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 Transmitter account number.

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 12, 2026.

Revenu Québec has been accepting transmission of RL-16 slips since November 2025.

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 30, 2025, and will accept the electronic transmission of T3 returns for the tax years 2025 and 2026 starting February 23, 2026.

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Rolling Forward Files

CCH iFirm Taxprep T3 2026 allows you to roll forward client files saved with Taxprep for Trusts (with the .324 or .325 extension), Cantax FormMaster (with the .T24 or .T25 extension) and version 2025.2.5 of ProFile (with the.24R extension).

The taxation year after a roll forward cannot end after December 31, 2026. If needed, it will be shortened so as to correspond to the period covered by this version.

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Getting Help

Benefit from our Advanced Virtual Agent 24/7!

Since January 1, 2025, the customer support teams offer their high-quality service exclusively through digital channels, and no longer offer incoming phone support.

Register for our Support Platform and log in to our virtual agent to find answers, submit a support ticket or chat with a live agent.

For more details about the web ticketing system and best practices, watch the following “How to” videos:

• How to Register for the Support Platform to Begin

• How to Open a Support Case

• How to Manage Your Support Cases

• How to Reset Your Support Platform Password

 

Useful support links:

Knowledge Base

More than 40,000 articles that answer the technical and tax questions most commonly asked to Support Centre agents.

 

Video tutorials and eHub training videos

We offer a wide range of training videos on how the applications work and their most frequently used features. You can also access eHub training videos from within your application by clicking the question mark (Help) in the upper right corner of the screen.

 

CCH iFirm Taxprep Help Centres

Select your application and access the CCH iFirm Taxprep help topics. You can also access the help topics by pressing the F1 key from within a return.

 

Support platform to request online support

Submit questions and requests through the virtual agent, support cases or live chat.

 

Support website

The support site brings together hot topics, the Knowledge Base, the calendar of product release dates, and more. 

 

Contact the team that can meet your needs

Contact the team that can best meet your needs directly.

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CCH iFirm Taxprep T3 e-Bulletin

For your convenience, you are automatically subscribed to the CCH iFirm Taxprep T3 e-Bulletin, a free e-mail service that ensures you receive up-to-date information about the application. If you want to review your subscription to Taxprep e-Bulletin, visit https://support.wolterskluwer.ca/en/ and, in the Newsletter tab, select Subscription Manager.

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