I have T3 & T5’s that are all joint. I want to only split the Capital Gains and Interest 50/50 but put all the Dividends on the principal return. This is important as it benefits the spouse with the higher income as it creates a larger spousal credit, and there is the benefit of using the dividend tax credits instead of losing them.
There is no way in the optimize section to do this, or on the T-slip.
Please let me know how you have done this previously, or if there is a way that I do not know about yet with the program.
Remove the dividend from the slip and enter a second slip with only the dividends on it. I always stick a memo in the area as a reminder in subsequent years of what was done.
It would be nice if the program had another percentage area for dividends only. Yes this great program can still be improved with some tweaks.
"This is important as it benefits the spouse with the higher income as it creates a larger spousal credit"
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For clarity, it is less about “important” than it would be a “requirement” in order to make that election.
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This election for a transfer of all dividends to the spouse per S82(3) requires that the election can only be made if the spousal credit is created or increased per the terms of S82(3). It would not be not permitted otherwise.
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. “and there is the benefit of using the dividend tax credits instead of losing them”
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Sometimes they potentially might have to be lost, if the requirements of S82(3) are not met…
Joe - Thank you. I have been doing taxes for 20+ years, as well as teaching tax courses to CPA’s, CGA’s as well as CRA employees. The program I used prior I was able to manipulate the dividend transfer much easier. I did not know if there was a way to do that with this program.
Arliss - Thank you for your suggestion. That is something I will consider doing.
I had actually posted a comment about this approximately a month ago as someone had this same issue about 4 years ago. A warning that this election could be made would be great.
