T3 Statement of Trust Income: Every Important Box Explained
Trust and mutual-fund allocations including interest, dividends, capital gains, return of capital and foreign income.
Expected timing
Usually issued by the end of March, later than most T4 and T5 slips.
Where it goes
Different boxes flow to investment income, dividend, capital-gain and foreign-tax-credit sections.
Frequently asked questions
Why do T3 slips arrive later than T5 slips?
Trusts and mutual funds need extra time after year-end to finalize the allocation between interest, dividends, capital gains and return of capital across all unitholders, so T3 slips are typically issued closer to the end of March rather than February.
What does Box 21 (capital gains) on a T3 mean?
Box 21 is the full capital gain allocated to you, before the 50% inclusion rate. Report the full Box 21 amount on Schedule 3 / line 17600 — the return applies the 50% inclusion rate there, so do not halve the figure yourself before entering it.
Does a Box 42 return-of-capital amount count as income this year?
No. A Box 42 amount is not taxed as income in the year it is received. Instead it reduces the adjusted cost base of your fund units, which increases the taxable capital gain (or reduces the capital loss) you report when you eventually sell.