How to input the dividend paid to share holders in T2?

Forum|Forum|6 years ago
June 3, 2020
3 replies
8 views

Where it should be input to be reflected the dividend payment to the share holder and to be deducted from the corporation income?

ProFile (Canada)

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J

jparsons

Level 4

This is quite straightforward. Pull up Schedule 3 and scroll down to line 450 where you can enter the dividends paid on the line for "total taxable dividends paid in the year to other than connected corporation."

Incidentally, don't read that taxable dividend amount to mean the grossed up amount which shows up on the shareholders' T1 returns. You'd just enter the actual dividend amount paid out.

L

Louis Kam

Level 5

And enter this $$ in S100, line 3700, 3701 and/or 3702 as well....

K

KFried12

Level 2

Can u confirm that the amount on line 3701 needs to be entered as negative number, so it can reduce retained earnings and balance out the reduction in assets.?

thanks

R

rwsmith

Level 2

dividends paid out are not a deductible item

P

Pro4

Level 8

Hi,

Yes, schedule 3 of a T2 is a CRA form for dividends received or paid, there is information at the top of s3 with details. Remember dividends are paid out of after tax income: they do not reduce income.

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