Passive Income on T2

Bruce5m · ‎October 29, 2019

I have an incorporated company and the main business activity is consulting. But, I do have some investment income within the corporation (dividend income). I am completing a T2 form. How does the T2 recognize the income as passive income - is there a form to be completed to identify the income as "passive income"?

Delphision · ‎October 29, 2019

You need to fill in the amount of the passive income on schedule 7. It isn't automatic on professional grade software, so I don't expect it will self-fill in Turbotax.

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Bruce5m · ‎October 29, 2019

Thanks - If I just enter in dividends and interest income amounts in the top part of the Schedule 7, does the software take care of the rest? (i.e., there are no special boxes to tick?)

Delphision · ‎October 29, 2019

Assuming you have everything in the appropriate boxes, the software should calculate the tax correctly.

Passive Income on T2

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Getting started

Getting started