Inputting T3 and T5 investment income into T2 Profile module

RN93 · ‎May 03, 2022

I am not seeing any T3 or T5 module within the T2 Profile return that maps the investment income. Am I having to put it in manually to the necessary schedules? Please confirm which schedule's and lines I should be entering the T3/T5 capital gains, interest and dividends in.

janisbossenberry · ‎May 03, 2022

Investment income gets recorded on the Schedule 125 - gifi code 8090 up to 8094. Dividend income is on the Schedule 125 - gifi code 8096, and also gets recorded on Schedule 3 Part 1. Capital gains dividends (capital gains on the T3 or T5 slips) are recorded as Investment income on the Schedule 125 (gifi code 8090 would work) and on Schedule 6 on line 875.

RN93 · ‎May 03, 2022

Great thanks!

EDAR · ‎March 05, 2024

thank you so much for your thorough explanation. I have one follow up question. Why do I need to report the same income in Schedule 125 as it's already included in Schedule 3. I noticed that once I entered the income in Schedule 125 it increases my taxes.

janisbossenberry · ‎March 05, 2024

Dividends are not subject to Part 1 tax. When you record the dividend income on Schedule 3, you will see a deduction from taxable income show up on line 320 or the T2 (the section where taxable income is calculated). The Part 1 tax is then substituted with Part IV tax, depending upon the whole situation, such as dividends also paid out, etc. If you do not record the dividends on Part 3, the program does not know that they are deductible under ITA section 112 or 113 and no deduction will show up on line 320.