Trust tax preparation by Lowe CPA Inc. involves handling the complex tax obligations for various types of trusts, ensuring compliance with the Canada Revenue Agency (CRA) while optimizing tax strategies for beneficiaries. The work typically requires:

• Trust Classification: Determining the type of trust (testamentary, inter vivos, family trust, etc.), as different trusts have unique tax rules and filing requirements.

• Gathering Trust Information: Collecting relevant documentation, such as income earned by the trust, capital gains, distributions to beneficiaries, and allowable deductions.

• Tax Calculations: Calculates trust’s income, deductions, and tax payable - specific trust-related tax rules will be evaluated, such as the treatment of income retained in the trust versus income distributed to beneficiaries.

• T3 Trust Tax Return Filing: The firm prepares and files the T3 return (Statement of Trust Income Allocations and Designations), ensuring compliance with both federal and provincial tax laws, and reports income allocated to beneficiaries.

• Tax Planning & Optimization: Lowe CPA Inc. advises trustees on tax-efficient strategies, such as timing of distributions, income-splitting opportunities, and managing capital gains or losses to minimize overall tax burdens for both the trust and its beneficiaries.

• CRA Communication & Support: If CRA correspondence or audits occur, Lowe CPA Inc. can handle communications on behalf of the trust or trustee by providing necessary documents and clarifications.

By using Lowe CPA Inc. for trust tax preparation, trustees and beneficiaries can ensure accurate reporting, compliance with complex tax regulations, and optimized tax outcomes.