Fill Form 8854 Ineligible 2023-2024

Music, how to prepare a T5 slip. Hi, my name is Alan Madden, a Chartered Accountant. Today, I will explain step by step how to prepare a T5 slip. If you are an owner of a corporation who receives or wants to receive dividends from your company, then this video is meant for you. What is a T5 slip? A T5 slip reports dividends paid from a Canadian corporation to its shareholders. To prepare a T5 slip, you must follow these eight easy steps: Step 1: Fill in the recipient's first name, last name, and address. The recipient is the individual receiving the dividend. Step 2: Fill in the payer's name and address. The payer is your corporation. Step 3: Write the year in which the dividend was received, for example, 2016. Step 4: Determine if the dividend paid is an eligible dividend or a non-eligible dividend. An eligible dividend is paid from corporate profits and has a preferential or lower tax rate. A non-eligible dividend is paid from corporate profits below $500,000. Most small businesses in Canada pay non-eligible dividends. Step 5: Enter the amount of dividends that you received in the calendar year January 1st to December 31st. For eligible dividends, enter 24. For non-eligible dividends, enter 10. For this example, assume that you received $50,000 of non-eligible dividends from your corporation in the 2016 calendar year. Step 6: Enter the amount of taxable dividends received. This is calculated using a formula: the actual amount of dividends, for example, $50,000, multiplied by a factor of 1.17. This equals the taxable amount of $58,500. Include this taxable amount of dividend in your personal tax return as taxable income. Step 7: Enter the amount of the dividend tax credit. This is calculated using a formula: the actual amount of dividends,...