buksoLawyer accountant trust account funds not
Not tax advice. General bookkeeping information only, checked against the official sources linked below (Canada Revenue Agency, IRS, provincial governments and Justice Laws) on Oct 17, 2026. Rules change; check with your accountant before you file.
Canada
Money a lawyer holds in trust for a client is not the lawyer's income; it becomes income when it is transferred out of trust for fees. The old election that let professionals leave work in progress (WIP) out of income has been phased out, so unbilled work is now generally part of income.
Official source: canada.ca