Capital dividend accounts

General information

As of May 2017, capital dividend account (CDA) balances will begin to be available on My Business Account for corporations who have either: asked for balance verification for such accounts; or filed Form T2054, Election for a Capital Dividend Under Subsection 83(2), with the Canada Revenue Agency. The CDA balances will be posted with a phased in approach, with accounts being updated on an ongoing basis.

Date the dividend becomes payable (if filed with Form T2054)

The date the dividend becomes payable is shown as year, month, and day. The date is when the dividend becomes payable under the directors’ resolution attached to Form T2054.

Includes tax year-end information up to (for a CDA balance request)

The date is shown as year, month, and day. The information is for the last tax year-end assessed, for which CDA information is available in Canada Revenue Agency records.

Non-taxable part of capital gains and non-deductible part of capital losses

This is the excess of the non-taxable part of capital gains over the non-deductible part of capital losses (including business investment losses) incurred by the corporation for the period of calculation.

Capital dividends received

This is the total of capital dividends received by the corporation for the period of calculation.

Eligible capital property

This is the non-taxable part of gains in the period from the disposition of eligible capital property.

Life insurance proceeds

This is the net proceeds of a life insurance policy received by the corporation as the beneficiary under the policy.
Life insurance CDA may have been combined with Life insurance proceeds, but this does not affect the balance.

Life insurance CDA

This is any balance in the corporation's life insurance capital dividend account, just before May 24, 1985.
Life insurance CDA may have been combined with Life insurance proceeds, but this does not affect the balance.

Non-taxable part of capital gains from a trust

This is the non-taxable part of capital gains distributed by a trust to the corporation.
Capital dividends from a trust may have been combined with Non-taxable part of capital gains from a trust, but this does not affect the balance.

Capital dividends from a trust

This is the dividends that were received by a trust for which an election was made under subsection 83(2), and that the trust distributed to the corporation.
Capital dividends from a trust may have been combined with Non-taxable part of capital gains from a trust, but this does not affect the balance.

Amounts from predecessor corporation and wound-up subsidiaries

This is the amount from the capital dividend account that was transferred, as a result of an amalgamation of corporations or a winding-up of a subsidiary.

Deduct: capital dividends that were payable earlier

This is the total of all capital dividends that became payable by the corporation during the period of calculation.

Balance available for payment from capital dividend account

This is the capital dividend account balance available to pay a capital dividend.

Deduct: dividend payable on

The date the dividend becomes payable is shown as year, month, and day. This is the date the dividend becomes payable (if Form T2054 is filed).
The amount is the capital dividend payable according to Form T2054 and the filed directors’ resolution.

Deduct: amount subject to Part III tax

This refers to Part III tax under subsection 184(2) of the Income Tax Act. The amount is 60% of the part of the dividend that does not qualify as a capital dividend, due to an election for an excessive amount under subsection 83(2) of the act.

Deduct: amount elected for under 184(3) of the Income Tax Act

This is the part of the exceeding dividends elected to be treated as a separate taxable dividend for the beneficiaries.

Capital dividend account balance as of processed date

This is the capital dividend account balance that the Canada Revenue Agency calculated.

Line

This refers to the line number of a data item on a schedule or an election form. This tells you which data you are viewing.

Description

This is for the description of a data item on a schedule or an election form. This tells you which data you are viewing.

Value

This is the assessed value on a line of a schedule or an election form.