Get Canada T2054 E 2020

The Canada T2054 E form is essential for private corporations to elect the provisions of subsection 83(2) for capital dividends. This guide will walk you through the process of completing the form online, ensuring that you understand each component and requirement.

Follow the steps to complete the Canada T2054 E form easily and accurately.

1. Press the ‘Get Form’ button to access the form and open it for editing.
2. In Part 1 – Identification, enter the corporation's name and business number. Provide the complete address and postal code, along with the contact person's name, mailing address (if different), and telephone number.
3. In Part 2 – Required information, fill in the full amount of the dividend for which this election is made. Next, indicate the balance of the capital dividend account (CDA) immediately before the dividend becomes payable. If applicable, calculate the excess amount subject to Part III tax.
4. Provide the dates for when the dividend becomes payable and when any part of the dividend was paid, entering only if the date is earlier than when it becomes payable.
5. In Part 3 – Dividends received from other corporations, indicate if your CDA includes a capital dividend received from another corporation. If yes, provide the required details for each dividend received.
6. In Part 4 – Late-filing penalty, understand that you may need to calculate the late-filing penalty if you are filing after the due date.
7. In Part 5 – Part III tax, enter the excess amount of the dividend that is subject to Part III tax and calculate the corresponding tax.
8. Complete Part 6 – Total payment accompanying this election by determining the total late-filing penalty and Part III tax, if applicable.
9. In Part 7 – Election and Certification, have an authorized officer complete their name, position, sign, and date the form to certify the information is true and complete.
10. Finally, save your changes, download the document, and print or share as required for submission.

Complete your Canada T2054 E form online today for a smooth filing process.