One of our partners was wondering if TaxCycle shows the taxable dividend that would be required to clear out an RDTOH balance anywhere. I don’t think it does, but I thought it was a good suggestion. Particularly right now with the Jan 1 2016 pro-ration, but even afterwards the new 38 1/3% isn’t quite as easy of a calc versus the old 33.3% that we used to do in our heads.
I was thinking the simplest implementation would likely be as a review message to identify the outstanding RDTOH balance with the dividend required to eliminate it included in the message? Or maybe somewhere in the optimization worksheet?
I will log a record for this. I was thinking of presenting this all the time in a worksheet or a summary where you could always go and check.
A question though, I am assuming that by the time a T2 is prepared, the corp would have done a director’s resoution to pay a dividend already. So, would the estimated amount of dividend to clear RDTOH be for the purposes of next year’s T2.
I think it would be for the current year. Sometimes we accountants help our clients today in deciding what they did days, weeks, or months ago.
Ok gotcha! Thanks.
A dividend estimate to clear out RDTOH for the current year would be our preference as well.
I think that would be useful as well. Does not matter to me if is on the schedule or in review note or separate page.
Hi @rick.s @matthew @wightman,
In the next T2 release (coming very very soon!), watch for a new section 3.1 in Schedule 3.
Have a great day and thanks for this suggestion!