When a corporation receives T3 income including capital gain, which line or schedule should this be reported to?


1 person found this helpful

When a corporate tax return is prepared (in Profile), the balance sheet and income statement ending balances/amounts must be entered into the GIFI schedules (schedules 100 and 125 if I recall from memory).

These must balance, so it is basically the trial balance that must be assigned to the appropriate GIFI line.

A T3 is typically used to report all kinds of income, including (but not limited to) Interest Income and Dividends (and possibly other types of income).  Each of these types of income has an associated GIFI line number.

As income is received, it should have been entered into the books of the corporation, and each account should have a GIFI line assigned so that when you enter/import the GIFI info into the schedules the return should be more or less complete.

Capital Gains should be recorded in an account seprate from other types of income and this account should be assigned the correct GIFI line number.  In the Revenue Section of Schedule 125 go to the line number field on an empty row and look for line 8210, 8211 or 8212; these are three lines available for Gains on sales of different types of assets.
Was this answer helpful? Yes No

No answers have been posted

More Actions

People come to ProFile for help and answers—we want to let them know that we're here to listen and share our knowledge. We do that with the style and format of our responses. Here are five guidelines:

  1. Keep it conversational. When answering questions, write like you speak. Imagine you're explaining something to a trusted friend, using simple, everyday language. Avoid jargon and technical terms when possible. When no other word will do, explain technical terms in plain English.
  2. Be clear and state the answer right up front. Ask yourself what specific information the person really needs and then provide it. Stick to the topic and avoid unnecessary details. Break information down into a numbered or bulleted list and highlight the most important details in bold.
  3. Be concise. Aim for no more than two short sentences in a paragraph, and try to keep paragraphs to two lines. A wall of text can look intimidating and many won't read it, so break it up. It's okay to link to other resources for more details, but avoid giving answers that contain little more than a link.
  4. Be a good listener. When people post very general questions, take a second to try to understand what they're really looking for. Then, provide a response that guides them to the best possible outcome.
  5. Be encouraging and positive. Look for ways to eliminate uncertainty by anticipating people's concerns. Make it apparent that we really like helping them achieve positive outcomes.

Select a file to attach: