https:/static1.squarespace.com/static/5565ecede4b0df78d78d2b36/t/5bc6926de2c483c657da646f/1539740274622/GovernmentGrantsWhitepaper

Although you may request to have the grant deposited in a bank account other than that of the grant recipient, the T4A at the end of the year will be made out in the name of the grant recipient for payments issued during the calendar year. [...] In such cases, when calculating income from an art production grant under paragraph 56(1)(n), the taxpayer may deduct whichever of the following amounts is greater: (a) $500 and (b) the total amount of reasonable expenses incurred to fulfil the conditions of receiving the art production grant, but not exceeding the total amount of the grant included in income for the year under paragraph 56(1)(n). [...] The amount in (b) above does not include: (c) personal or living expenses of the taxpayer (other than expenses for travel, meals and lodging incurred in the course of fulfilling the conditions of the grant and while absent from the taxpayer’s usual place of residence for the period to which the grant relates). [...] For example, if notification of a grant is received in September of one year, but the grant is not received until February of the following year, production expenses incurred during the last three months of the first year will be allowed as deductions from the grant in the second year when it is received and included in income. [...] A prize meeting all of the criteria of a prescribed prize is not included in computing the income of the recipient, even if the prize relates to accomplishments in the recipient’s ordinary field of endeavour.