T2 Question on Page 4

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New Member

T2 Question on Page 4

On page 4 of T2, there are three equations to calculate the deductions.
I do not understand "Number of days in the tax year before January 1, 2018", "Number of days in the tax year after December 31, 2017, and before January 1, 2019", "Number of days in the tax year after December 31, 2018", and "Number of days in the tax year".
If my tax year is June 1, 2019 to May 31, 2020, what is the answer to the above?
Thank you!

3 Replies
Level 6

T2 Question on Page 4

Hi, thank you for using Intuit TurboTax Community

An entry in these fields may be required only for corporations with a year end before 2019. TurboTax business Inc will automatically populate these fields in the Small Business Deduction (SBD) section based on the entered tax year; manual entries in this section are not required.  Depending on the tax year of the corporation different percentages are used in the SBD section calculations: these changed as a result of Canada Revenue Agency changes. The rates changed from 17.5% to19% and depend on the number of days the tax year fell into each of those listed time periods.

Hope this helps

 

New Member

T2 Question on Page 4

T2 Small Business Tax Deduction--Federal and Alberta

1. I am trying to complete the small business tax deduction forms.  They will not self-populate. I am sure that I am eligible to claim this--my accountant has the past few years. This suggests that there is box or piece of information that is either missing or entered incorrectly. Please suggest what that might be?

2.  How do I enter dividends declared in the current year to individual shareholders of the company? The forms all refer to associated corporations but I can't see anywhere to enter the dividends that individuals receive.  When  working with a different system, there was a line in the Retained Earnings section for Dividends Declared.

I would appreciate any help you can give me.

 

Level 6

T2 Question on Page 4

Hi, thank you for using Intuit TurboTax Community

The T2 section for SBD and the AT1 Schedule 1 will both auto-populate if the corporation type is Canadian-controlled private corporation (CCPC) on the Info tab

Schedule 3 is used to report dividends received or paid; have a look at line 450 for example.

TurboTax does not adjust retained earnings from entries made on schedule 3. The balance sheet and income statement must be completed before starting the tax return

Hope this helps

 

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