  Low rate income pool |
Use LRIP-Balance to enter the low rate income pool (LRIP) at the end of the previous tax year if you were a corporation resident in Canada that was a corporation other than a CCPC or a DIC or a corporation that elected under subsection 89(11) not to be a CCPC.
 See the Taxnet Pro™ T2 Line-by-Line Guide (subscription required):
Line 269 - LRIP
Line 2710 - Part III.1 tax payable
Use Date-EligDivPaid to enter each date and amount where an eligible dividend was paid in the year for purposes of federal schedule 54.
Use Dividend-Amt.l to enter the amounts applicable to dividends in the current tax year.
The following options are applicable for the keyword Dividend-Amt.l.
Tax. dividends receivable (other than eligible) - LN(210)
Tax. dividends payable (other than eligible) - LN(240)
Excessive eligible dividend design. (override) - LN(250)
Use NonElig-Divds to enter all taxable dividends other than eligible dividends, capital gains dividends within the meaning assigned by subsection 130.1(4) or 131(1), or dividends deductible under subsection 130.1(1). For a non-CCPC with a tax year starting after April 6, 2022, include amounts paid in the previous tax year that did not reduce the LRIP or line 150 of the previous tax year, whichever is less.
Use LRIP-Addition for an amalgamation, wind-up or the corporation ceasing to be a CCPC or a DIC. This information is needed in order to calculate the LRIP addition on federal schedule 54.
The following options are applicable for the keyword LRIP-Addition.
See the Taxnet Pro™ T2 Line-by-Line Guide (subscription required):
Line 269 - LRIP
Line 2710 - Part III.1 tax payable
Use Predecessor.l to enter the name of the predecessor corporation.
Use Subsidiary.l to enter the name of the subsidiary corporation.
Use Corp-Type.l to indicate whether or not the predecessor corporation or the subsidiary corporation was a Canadian-controlled private corporation (CCPC) or a deposit insurance corporation (DIC) in the previous year. This information is used to determine the LRIP addition for purposes of federal schedule 54.
The following options are applicable for the keyword Corp-Type.l.
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 Date-Adjust.l to enter the date that an adjustment was made as a result of an amalgamation or the wind-up of a subsidiary or on ceasing to be a CCPC.
Use PriorYrInfo.l to enter amounts relating to the previous/last year in order to determine the LRIP addition for purposes of federal schedule 54.
The following options are applicable for the keyword PriorYrInfo.l.
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.l 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.l.
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.l 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.l.
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 LRIP-PrevYr to enter previous year information in order to determine the LRIP at the end of the tax year.
The following options are applicable for the keyword LRIP-PrevYr.
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.l to enter the excessive eligible dividend designation elected under subsection 185.1(2) to be treated as ordinary dividends.
See the Taxnet Pro™ T2 Line-by-Line Guide (subscription required):
Line 269 - LRIP
Line 2710 - Part III.1 tax payable
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Date-EligDivPaid 
Dividend-Amt.l 
NonElig-Divds