Passive Income on T2

[Bruce5m]

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 · Accepted solution]

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.

[Bruce5m]

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]

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