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eligible and other than eligible dividends

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  • Feb 25th, 2012 9:27 am
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Deal Addict
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Aug 19, 2002
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eligible and other than eligible dividends

I'm doing my taxes by myself for the first time and am a little confused about the two types of dividends. I received dividends from RBC in 2006, do they fall under "eligible" or "other than eligible"? How would one find out the type of dividends a company offers?
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Deal Addict
Jan 5, 2005
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goob3r wrote:
Apr 23rd, 2007 9:44 pm
I'm doing my taxes by myself for the first time and am a little confused about the two types of dividends. I received dividends from RBC in 2006, do they fall under "eligible" or "other than eligible"? How would one find out the type of dividends a company offers?
Since it's a public company, I think it would fall under Eligible dividends.
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Mar 10, 2007
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goob3r wrote:
Apr 24th, 2007 1:44 am
I'm doing my taxes by myself for the first time and am a little confused about the two types of dividends. I received dividends from RBC in 2006, do they fall under "eligible" or "other than eligible"? How would one find out the type of dividends a company offers?
You should have gotten a T-slip for the dividends. It would be clearly indicated on the slip. All the same,they're almost certainly eligible dividends.
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Aug 10, 2005
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RBC would be eligible dividends as they're not a company that qualifies for the SBD. I believe non-eligible dividends are dividend paid from corporations that qualify for the SBD --> thus, less credit because they were taxed at lower rate at the corporate level.

Like others said, you would most likely receive a T-slip that includes the dividend. Go back to your investment summary and the t-slip that came with it. Don't double count the same income.
[OP]
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Thanks for the info, I looked it up on RBC's site too and indeed it's elligible.

Actually, I didn't receive a physical T slip for my dividends for RBC (which was my only dividend paying stock in 2006). I only realised that I forgot to include them when I was looking at my online tax forms from TD Waterhouse and notice one I didn't receive in the mail. In terms of dividends, the only thing I received from TD Waterhouse physically was a list of dividends I received from my REIT and a trading summary for the year. Weird.
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Feb 21, 2012
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FORT SASKATCHEWAN
I need help on this. It is very confusing and I havent seen anyone explain it properly. I will just describe my situation and I will let the experts tell me where I stand.

So I have an LLC (registered company) and about to prepare my T5. My tax accountant says I should file "other than eligible" however I think I should file "eligible". Any body out there can tell me how to know what to file?

Thanks.
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Feb 15, 2008
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"eligible" versus "non-eligible" didn't exist in 2006, did it?

Generally income that is from Canadian incorporated entities, and has Canadian income tax paid on it at the corporate level, will result in an 'eligible' dividend. The issuer of the dividend will advise accordingly if it is eligible or not.

Since RY is one of the most widely held Canadian stocks, the information, as it is applicable to dividends paid out after the Income Tax Act amendments dealing with 'eligible' versus 'non-eligible' dividends, is probably on their website somewhere. Or certainly can be obtained from Investor Relations if applicable.
TodayHello wrote:
Oct 16th, 2012 9:06 pm
...The Banks are smarter than you - they have floors full of people whose job it is to read Mark77 posts...
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Feb 21, 2012
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FORT SASKATCHEWAN
to be honest i dont understand the BDO article...
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Aug 21, 2007
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Alabaman wrote:
Feb 23rd, 2012 2:07 am
I need help on this. It is very confusing and I havent seen anyone explain it properly. I will just describe my situation and I will let the experts tell me where I stand.

So I have an LLC (registered company) and about to prepare my T5. My tax accountant says I should file "other than eligible" however I think I should file "eligible". Any body out there can tell me how to know what to file?

Thanks.

presumably your accountant is an expert, BUT, to put it in a way that makes sense:

YOu cannot declare eligible dividends unless you have busines income that does not receive the small business deduction.

Given that the SBD covers net income upto 500k, you can only declare an eligible dividend for the amount of your income that exceeds 500k/does not end up qualifying for the SBD.

In your case, I imagine you have not crossed the 500k threshold, so that you are not eligible (hehe) to declare an eligible dividend.
Newbie
Feb 21, 2012
3 posts
FORT SASKATCHEWAN
Thanks adeel! this is the type of black and white answer I was looking for.
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