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jlee37
June 7, 2021
Question

T2 Return

  • June 7, 2021
  • 1 reply
  • 0 views

Hello: 

 

On a T2 return, does the dividends paid to the shareholder get taxed as a business income, as well as when it is paid out to the shareholder?  So it is taxed twice?  

 

So if, my client makes $50,000, in a year, and takes out $48,000 of it as a dividend, would his company be taxed and also be taxed personally?  I do not normally file T2 returns, but am trying to better understand. 


Thank you. 

1 reply

A
Alex M
June 8, 2021

Hi there jlee37,

 

Making sure that all transactions are accounted for correctly is important. QuickBooks Online is a great tool to help you keep track of your sales and expenses to see a better picture of your finances. I can point you in the right direction. 

 

In order t know if these dividends are taxable, I recommend reaching out to your accountant or local tax expert. their knowledge of best business practices will be able to let you know if those transactions are in fact taxable. If you were to want to invite them to your QuickBooks account, you can do so by navigating to the My accountant tab. You can also find an accountant near you by clicking on the Find a pro to help option found on this page.

 

Have a great day.

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