Co-signing A Mortgage May Now Require Filing A T3

New trust reporting rules came into effect December 31, 2023, which apply to bare trusts in Canada.  If you have co-signed a mortgage for a home where you hold at least 1% of the title, and you are not living in that home, these new rules apply to you. 

Most commonly, these new rules will apply to parents who have co-signed for their children's mortgage and, subsequently, hold 1% of the title of that home.  If you do not file a T3, the penalty can be as much as $2500 or 5% of the fair value of the property held in trust.

If these rules apply to you, you have until April 2, 2024 to file a Schedule 15.  Please contact your accountant for further assistance in making your filing.