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Form T2 Short Return - Canada
What Is T2 Short Return?
Form T2, Short Return , is a legal document certain categories of Canadian corporations can complete to report their income during the year. This form was released by the Canadian Revenue Agency (CRA) on January 1, 2019, with all previous editions obsolete. Download a fillable Form T2 Short Return below. If your corporation does not belong to one of the exempt categories, you have to submit Form T2, Corporation Income Tax Return, instead.
Alternate Name:
- T2 Short Form.
Submit this return only if your business complies with the eligibility rules:
- You own a private business formed in Canada.
- Your organization has no income or has incurred a capital loss this year.
- You have tax-exempt status in accordance with the Income Tax Act - for instance, you manage a non-profit entity.
How to Fill Out T2 Short Return?
Here is how you prepare the T2 Short Form:
- Begin with Schedule 1S - it is an essential part of the current edition of the return. Enter the name of your company, its business number, and the date when you end your tax year.
- Indicate your net income or loss after taxes - write down the same number in Form T2 Schedule 125, Income Statement Information, you attach to the form.
- Add the value of tangible and intangible assets, donations and gifts, capital gains and various expenses. You are free to include other additions. Then, deduct the total amount from the total income or loss from Line A.
- Calculate the net income (loss) for the purposes of the report. Add all your deductions - incomes of joint venture and partnership, holdbacks, allowable investment losses, etc. - and deduct this amount from the number you wrote on Line B.
- Prepare the main body of the return - write down your business number and name of the organization, list your addresses, check the box to select the corporation type and the type of exemption you qualify for.
- Indicate the beginning and the end of the tax year you are describing and check the applicable boxes to confirm changes your business has gone through during the reporting period. Record the net income or loss from Form T2 Schedule 1, Net Income (Loss) for Income Tax Purposes, on line 300.
- Answer the questions on the last page of the return to figure out which schedules must be attached to the form.
- Describe the area of business you are involved in, state whether your organization is active or not.
- Certify all the statements in the form are complete and true, enter your full name and position, date and sign the document, and add your telephone number. Check the box to choose the language for future correspondence.
You may submit this form online or via traditional mail. The T2 Short Return mailing address will depend on the location of your business - you have to file the documentation at your local tax service office.
Download Form T2 Short Return - Canada
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