  General rate income pool |
Use GRIP-Balance to enter the general rate income pool (GRIP) at the end of the previous tax year if you were a CCPC or a DIC in the previous year.
CRA T2 Auto-fill service
The current tax year GRIP is calculated on Schedule 53, "General Rate Income Pool (GRIP) Calculation". The GRIP at the end of the previous tax year is reduced by the difference between the eligible dividends paid in the previous tax year and the excessive eligible dividend designations made in the previous tax year. The result is to establish a new balance at the beginning of the current tax year from which an eligible dividend may be paid for the tax year before paying other dividends.
 See the Taxnet Pro™ T2 Line-by-Line Guide (subscription required):
Line 268 - GRIP
Line 2710 - Part III.1 tax payable
Use Dividend-Amt to enter the amounts applicable to dividends in the current and previous tax year.
The following options are applicable for the keyword Dividend-Amt.
Eligible dividends received - current yr
Div. received foreign affiliate (override) - current yr
Eligible dividends paid - current year
Eligible dividends paid - previous yr
Excessive eligible dividend designations - previous yr
Use GRIP-Adjustment to indicate the year to which the specified future tax consequences apply.
The following options are applicable for the keyword GRIP-Adjustment.
1st prior year
2nd prior year
3rd prior year
See the Taxnet Pro™ T2 Line-by-Line Guide (subscription required):
Line 268 - GRIP
Line 2710 - Part III.1 tax payable
Use Before-Future-Adj to enter the relevant amounts before specified future tax consequences to the previous year.
The following options are applicable for the keyword Before-Future-Adj.
Taxable income
Income for small business deduction Amount on line 400, 405, 410, 428 of the T2 return, whichever is less.
Aggregate investment income Aggregate investment income from line 440 of the T2 return.
Use After-Future-Adj to enter the relevant amounts after specified future tax consequences to the previous year.
The following options are applicable for the keyword After-Future-Adj.
Taxable income
Income for small business deduction Amount on line 400, 405, 410, 428 of the T2 return, whichever is less.
Aggregate investment income Aggregate investment income from line 440 of the T2 return.
Use GRIP-Addition for a post-amalgamation, post-wind-up or the corporation is becoming a CCPC/DIC. This information is needed in order to calculate the GRIP addition.
The following options are applicable for the keyword GRIP-Addition.
See the Taxnet Pro™ T2 Line-by-Line Guide (subscription required):
Line 268 - GRIP
Line 2710 - Part III.1 tax payable
Use Predecessor.g to enter the name of the predecessor corporation.
Use Subsidiary.g to enter the name of the subsidiary corporation.
Use Corp-Type.g to indicate whether or not the predecessor corporation or the subsidiary corporation was Canadian-controlled private corporation (CCPC) or a deposit insurance corporation (DIC) in the previous year. This information is used to determine the GRIP addition for purposes of federal schedule 53.
The following options are applicable for the keyword Corp-Type.g.
Predecessor was a CCPC/DIC in last tax yr
Predecessor was not a CCPC/DIC in last tax yr
Subsidiary was a CCPC/DIC in last tax yr
Subsidiary was not a CCPC/DIC in last tax yr
Use PriorYrInfo.g to enter amounts relating to the previous/last year in order to determine the GRIP addition for purposes of federal schedule 53.
The following options are applicable for the keyword PriorYrInfo.g.
GRIP closing balance
Eligible dividends paid
Excessive eligible dividends design.
Cost amount of all property
Money on hand
Debts and other obligations O/S
Paid up capital
Reserves deducted
Capital dividend account
LRIP closing balance
Use Loss-CF.g to enter the amount of losses that would have been deductible under subsection 111(1) in calculating the corporation's taxable income for the previous/ last tax year.
The following options are applicable for the keyword Loss-CF.g.
Net capital loss
Restricted farm loss Restricted farm losses can be carried forward ten tax years if it arose in a tax year ending before 2006, 20 tax years if it arose in a tax year ending after 2005 and carried back three years against farming income. Loss carryforwards and carrybacks will appear on Schedule 4. Such losses arise when farming is not the corporation's chief source of income. If farming is the chief source, choose the relevant farming corporation type in the Activity keyword.
Farm loss Farm losses can be carried forward ten tax years if it arose in a tax year ending before 2006, 20 tax years if it arose in a tax year ending after 2005 and carried back three years. Loss carryforwards and carrybacks will appear on Schedule 4.
Non capital loss Non capital losses can be carried forward ten tax years if it arose in a tax year ending after March 22, 2004, and before 2006, 20 tax years if it arose in a tax year ending after 2005 and carried back three years. Loss carryforwards and carrybacks will appear on Schedule 4.
Limited partnership loss Limited partnership losses can be carried forward indefinitely. Losses are deductible to the extent of the at-risk amount. Enter the current year limited partnership loss, loss carryforwards and the at-risk amount relating to each partnership of which the corporation is a limited partner in the LimPartLoss, Amount-CF and At-RiskAmt keywords in the LimPartLoss group. Loss carryforwards will appear on Schedule 4.
Use Loss-Applied.g to enter the amount of losses deducted under subsection 111(1) in calculating the corporation's taxable income for the previous/last tax year.
The following options are applicable for the keyword Loss-Applied.g.
Net capital loss
Restricted farm loss Restricted farm losses can be carried forward ten tax years if it arose in a tax year ending before 2006, 20 tax years if it arose in a tax year ending after 2005 and carried back three years against farming income. Loss carryforwards and carrybacks will appear on Schedule 4. Such losses arise when farming is not the corporation's chief source of income. If farming is the chief source, choose the relevant farming corporation type in the Activity keyword.
Farm loss Farm losses can be carried forward ten tax years if it arose in a tax year ending before 2006, 20 tax years if it arose in a tax year ending after 2005 and carried back three years. Loss carryforwards and carrybacks will appear on Schedule 4.
Non capital loss Non capital losses can be carried forward ten tax years if it arose in a tax year ending after March 22, 2004, and before 2006, 20 tax years if it arose in a tax year ending after 2005 and carried back three years. Loss carryforwards and carrybacks will appear on Schedule 4.
Limited partnership loss Limited partnership losses can be carried forward indefinitely. Losses are deductible to the extent of the at-risk amount. Enter the current year limited partnership loss, loss carryforwards and the at-risk amount relating to each partnership of which the corporation is a limited partner in the LimPartLoss, Amount-CF and At-RiskAmt keywords in the LimPartLoss group. Loss carryforwards will appear on Schedule 4.
You can elect to treat all or part of your excessive eligible dividend designation as a separate taxable dividend in order to eliminate or reduce the Part III.1 tax otherwise payable. You must file the election on or before the day that is 90 days after the day the notice of assessment for Part III.1 tax was sent. The CRA will accept an election before the assessment of the tax. For more information on how to make this election, go to www.canada.ca/en/revenue-agency/services/tax/businesses/topics/corporations/eligible-dividends.html.
Use the keyword Election.g to enter the excessive eligible dividend designation elected under subsection 185.1(2) to be treated as ordinary dividends.
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Dividend-Amt 
GRIP-Adjustment 
Before-Future-Adj