Final T2 return on dissolving a BC Limited Company

T2
1

I have a client in BC, it is a BC resitered corporation, The company was dissolved on Apr 30, 2026. We are filing the final return.T2, where do your enter the dissolution date?? Thank you

2

On a T2 Return in TaxCycle, you do not enter a date of dissolution; instead, you record it by establishing a short fiscal year and marking the return as final return, on the contrary in ProFile we have that facility

info page

90fd825e-14ef-46a2-8d4b-7784eb44c0b2.png
90fd825e-14ef-46a2-8d4b-7784eb44c0b2.png537×586 22 KB

3

This is the way! Just about to do another one (after the dividend refund is received and paid back out…).

4

That gets to be a never-ending cycle. If the company has enough RDTOH, getting a dividend refund and paying that out as a dividend results in another dividend refund. It gets smaller as the cycle repeats, but it’s friggin ridiculous. Pay the dividend refund out as a bonus and be done with it. And, don’t claim a loss carry-back.

5

Overpay the dividend to clear RDTOH, send some back as a shareholder loan to the corp, and withdraw the balance when the refund arrives. But yah…you gotta use up the RDTOH or you end up in that stupid cycle.