# Required dividend to clear out an RDTOH balance

**URL:** <https://www.protaxcommunity.com/t/required-dividend-to-clear-out-an-rdtoh-balance/1055>\
**Category:** Product Suggestions\
**Created:** [February 14, 2017, 11:36pm UTC](https://www.protaxcommunity.com/t/required-dividend-to-clear-out-an-rdtoh-balance/1055 "2017-02-14T23:36:15Z")\
**Posts on this page:** 7\
**Page:** 1

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**Author:** ![rick.s](https://avatars.discourse-cdn.com/v4/letter/r/bb73d2/32.png) [@rick.s](https://www.protaxcommunity.com/u/rick.s)\
**Post date:** [February 14, 2017, 11:36pm UTC](https://www.protaxcommunity.com/t/required-dividend-to-clear-out-an-rdtoh-balance/1055/1 "2017-02-14T23:36:15Z")

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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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**Author:** ![Steven](https://sea2.discourse-cdn.com/flex016/user_avatar/www.protaxcommunity.com/steven/32/790_2.png) [@Steven](https://www.protaxcommunity.com/u/Steven)\
**Post date:** [February 15, 2017, 12:24am UTC](https://www.protaxcommunity.com/t/required-dividend-to-clear-out-an-rdtoh-balance/1055/2 "2017-02-15T00:24:08Z")

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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

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**Author:** ![matthew](https://sea2.discourse-cdn.com/flex016/user_avatar/www.protaxcommunity.com/matthew/32/85_2.png) [@matthew](https://www.protaxcommunity.com/u/matthew)\
**Post date:** [February 15, 2017, 12:40am UTC](https://www.protaxcommunity.com/t/required-dividend-to-clear-out-an-rdtoh-balance/1055/3 "2017-02-15T00:40:26Z")

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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. 😉

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**Author:** ![Steven](https://sea2.discourse-cdn.com/flex016/user_avatar/www.protaxcommunity.com/steven/32/790_2.png) [@Steven](https://www.protaxcommunity.com/u/Steven)\
**Post date:** [February 15, 2017, 12:45am UTC](https://www.protaxcommunity.com/t/required-dividend-to-clear-out-an-rdtoh-balance/1055/4 "2017-02-15T00:45:23Z")

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@matthew  
Ok gotcha! Thanks.

Steven

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<div class="post-metadata">

**Author:** ![rick.s](https://avatars.discourse-cdn.com/v4/letter/r/bb73d2/32.png) [@rick.s](https://www.protaxcommunity.com/u/rick.s)\
**Post date:** [February 15, 2017, 4:16pm UTC](https://www.protaxcommunity.com/t/required-dividend-to-clear-out-an-rdtoh-balance/1055/5 "2017-02-15T16:16:47Z")

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Thanks Steven!

A dividend estimate to clear out RDTOH for the current year would be our preference as well.

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**Author:** ![wightman](https://avatars.discourse-cdn.com/v4/letter/w/5fc32e/32.png) [@wightman](https://www.protaxcommunity.com/u/wightman)\
**Post date:** [February 16, 2017, 2:21pm UTC](https://www.protaxcommunity.com/t/required-dividend-to-clear-out-an-rdtoh-balance/1055/6 "2017-02-16T14:21:08Z")

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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.

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**Author:** ![Steven](https://sea2.discourse-cdn.com/flex016/user_avatar/www.protaxcommunity.com/steven/32/790_2.png) [@Steven](https://www.protaxcommunity.com/u/Steven)\
**Post date:** [June 14, 2017, 2:10pm UTC](https://www.protaxcommunity.com/t/required-dividend-to-clear-out-an-rdtoh-balance/1055/7 "2017-06-14T14:10:31Z")

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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