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Required dividend to clear out an RDTOH balance

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?

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@rick.s
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.

Thanks.

Steven

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. :wink:

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@matthew
Ok gotcha! Thanks.

Steven

Thanks Steven!

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!

Steven

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