Hello Allan,
I like your vidoe. I have question regarding how to calculate eligible dividends from received mutual funds/stocks as investment income in small business. Does have any deduction from that dividend as taxable investment?
Thanks,
eligible dividends as investment income in t2
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The actual amount of eligible dividends received by the corporation in respect of its investments in marketable securities should be entered on Schedule 3 of the T2 return. When preparing Schedule 3, make sure that you specify that the dividends received are tax-deductible, under Section 112, and paid by a non-connected corporation. Your corporation will not be connected to the payer corporation if your corporation owns less than 10% equity in the payer corporation. Furthermore, Part 4 tax of 38% is imposed on dividends received from non-connected corporations. The amount of Part 4 tax paid is added to the Refundable Dividend Tax On Hand Account.
Finally, complete Schedule 53, General Rate Income Pool Calculation. On this schedule, add the amount of the eligible dividends received to the GRIP balance.
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