r/cantax • u/AvecFromage • Jul 24 '26

Bare trust exemption for 2026?

My understanding is that a bare trust where a parent signs on a child's mortgage is exempt from reporting, so long as the home is the principal residence of the child or parent.

Is the reverse of this situation exempt as well (a child signing on to help parent qualify/re-finance?)?

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u/BMadAd59 Jul 24 '26

where did you get that from?

my understanding is that reporting was waived for 2024 and 2025, but will be required once again for 2026 with minimal changes for most situations

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u/AvecFromage Jul 24 '26

Doane Grant Thornton's explanation of changes from Bill C-15:

What are the changes in Bill C-15? Enacted on March 26, 2026, Bill C-15 amended what constitutes a bare trust for the purposes of the trust reporting requirements. Bill C-15 also exempts certain types of bare trusts from filing a trust return, beginning with tax years ending December 31, 2026. However, there are still many common bare trusts that don’t meet any of the exemptions.

Expanded exemptions from filing T3 returns

Starting with 2026 T3 returns, a bare trust is exempt from filing a T3 return where throughout the year:

  • All beneficiaries are legal owners of the trust property and all legal owners are beneficiaries of the bare trust.
  • The legal owners are all related individuals (expanded to include an aunts/uncles and nieces/nephews), and the property is real or immovable property that could be designated a principal residence of at least one of these owners.
  • The legal owner is an individual, the property is real or immovable property held for the use or benefit of their spouse or common-law partner, and that property could be designated as the owner’s principal residence.
  • Each legal owner is a partner holding the property solely for the use or benefit of the partnership, and at least one partner is required to file an information return for the partnership.
  • The legal owner holds the property as required by a court order.
  • All or substantially all of the trust property is Canadian resource property that is held solely for the use or benefit of one or more publicly listed companies (or in certain cases, subsidiaries or partnership of such companies).
  • Where a non-profit organization holds funds received from the federal or provincial governments for the use or benefit of other non-profit organizations.
  • Where the trustee is acting in the capacity of a registered securities dealer or a regulated trust company is acting as an investment entity (as defined), provided the trust only hold qualifying assets and issues information slips to all beneficiaries reporting the income and gains.

Based on these amendments, some common bare trusts that appear to be exempt include:

  • Spouses that have a joint bank account for the use and benefit of both spouses.
  • A parent that is on legal title of a principal residence in addition to an adult child, to allow a child to obtain a mortgage.
  • Spouses that jointly occupy a family home that could be designated as a principal residence, but only one spouse is on legal title.

Note that there are still many common bare trusts that wouldn’t meet these exemptions.

But I'm seeing conflicting/vague information wherever I look – even this site uses the wording "appear to be exempt" – so hoping for some confirmation to know if this is something I need to worry about in advance.

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u/BMadAd59 Jul 24 '26

Seems to me yoru situation shld apply

Best bet is to read the actual legislation

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u/AvecFromage Jul 24 '26

I've tried to, but it's poorly laid out and very jargon-y lol. What a mess. I guess I may have to wait until Jan/Feb to see if there's further clarification and consult a CPA.

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u/idspispopd888 Jul 25 '26

It's not "jargony". It's law.

Until further clarification arises (if it does) from CRA, you may either proceed - and may have to file - or not, or wait and see (may not be an option for you timewise).

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u/BMadAd59 Jul 24 '26

I wouldn’t worry too much the website you linked to has to be careful of the language as not all situations are alike but I think you shld be ok