Personal Finance

Simplist way to file corporate T2 with no business activity

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  • Aug 19th, 2020 11:54 am
[OP]
Member
Aug 21, 2016
276 posts
103 upvotes

Simplist way to file corporate T2 with no business activity

Hi, I’m trying to help out a friend that still hasn’t filed her corporations T2 for 2019. She had income and filed in 2018 and will again in 2020 but there was no revenue or expenses in 2019. Her previous accountant still wants to charge the full amount to prepare it but it seems it should be a simple return. I’ve done personal taxes myself for years but never corporate.

Do we have any options to file this non-complex return ourselves and any software recommendations? Thanks
10 replies
Deal Addict
Jul 30, 2003
1906 posts
290 upvotes
Toronto
No revenue or expense.. how about depreciation?
Member
User avatar
Feb 16, 2014
321 posts
231 upvotes
fern54 wrote: Hi, I’m trying to help out a friend that still hasn’t filed her corporations T2 for 2019. She had income and filed in 2018 and will again in 2020 but there was no revenue or expenses in 2019. Her previous accountant still wants to charge the full amount to prepare it but it seems it should be a simple return. I’ve done personal taxes myself for years but never corporate.

Do we have any options to file this non-complex return ourselves and any software recommendations? Thanks
Download and file this manually. Mail it.
https://www.canada.ca/en/revenue-agency ... short.html
zero_ wrote: No revenue or expense.. how about depreciation?
You mean CCA... and why would you claim this when there is Nil net income?
Unless the strategy is to carryback non-capital losses! Face With Stuck-out Tongue And Tightly-closed Eyes

#accountant ;)
Newbie
Jun 16, 2017
96 posts
27 upvotes
Hi,
If the corp has a loss, Taxtron is free. MytaxExpress is 39.99 for a single return. If you are interested in having them done for a modest fee, PM me.
[OP]
Member
Aug 21, 2016
276 posts
103 upvotes
b33zlebub wrote:

Download and file this manually. Mail it.
https://www.canada.ca/en/revenue-agency ... short.html
Thanks. Looking at the form I'm not 100% sure I can figure it all out myself without using any software. Generally speaking in this situation, do you think I'll be fine using the short form + doing research?
CraigB806782 wrote: Hi,
If the corp has a loss, Taxtron is free. MytaxExpress is 39.99 for a single return. If you are interested in having them done for a modest fee, PM me.
Unfortunately it would just be a straight 0 so not at a loss. I'm sure I could claim some minor expense that would put it at one though.
Newbie
Jun 16, 2017
96 posts
27 upvotes
"Unfortunately it would just be a straight 0 so not at a loss. I'm sure I could claim some minor expense that would put it at one though."
Charge your friend $1 consulting fee to create the loss.
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Feb 16, 2014
321 posts
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fern54 wrote: Thanks. Looking at the form I'm not 100% sure I can figure it all out myself without using any software. Generally speaking in this situation, do you think I'll be fine using the short form + doing research?

Unfortunately it would just be a straight 0 so not at a loss. I'm sure I could claim some minor expense that would put it at one though.
T2 Short is straightforward. There is a fillable pdf.

You will also need Sch 100, Sch 125 and Sch 8 (if you filed one last year). Or if you have 2019 financial statements, file these instead with the T2 short. Ignore the rest of the schedules in the link.

Do you have a copy of your 2018 T2? Copy over the info to the jacket (corporation name, BN, etc,) except the period will be the corporation 2019 fiscal year.
Checkbox "Yes" for - Is the corporation inactive?

If you don't have 2019 financial statements and corporate Assets and Liabilities didn't change from 2018 fiscal year end it should just be a matter of putting in the year end numbers for Sch100 for the balance sheet and Sch 8 for the CCA assets.

Schedule 125 field codes to fill in:
** 8299 Total Non-Farm Revenues = 0 (assuming the business is not farming)
** 9368 Total Operating expenses = 0
** 9999 Net income/loss =0

Leave everything else blank. Sign, date, mail in.

.....QED (Quite Easily Done)
[OP]
Member
Aug 21, 2016
276 posts
103 upvotes
b33zlebub wrote: T2 Short is straightforward. There is a fillable pdf.

You will also need Sch 100, Sch 125 and Sch 8 (if you filed one last year). Or if you have 2019 financial statements, file these instead with the T2 short. Ignore the rest of the schedules in the link.

Do you have a copy of your 2018 T2? Copy over the info to the jacket (corporation name, BN, etc,) except the period will be the corporation 2019 fiscal year.
Checkbox "Yes" for - Is the corporation inactive?

If you don't have 2019 financial statements and corporate Assets and Liabilities didn't change from 2018 fiscal year end it should just be a matter of putting in the year end numbers for Sch100 for the balance sheet and Sch 8 for the CCA assets.

Schedule 125 field codes to fill in:
** 8299 Total Non-Farm Revenues = 0 (assuming the business is not farming)
** 9368 Total Operating expenses = 0
** 9999 Net income/loss =0

Leave everything else blank. Sign, date, mail in.

.....QED (Quite Easily Done)
Absolutely amazing. Really appreciate you taking the time to write that all out. I'll get that done tomorrow.
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Feb 16, 2014
321 posts
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fern54 wrote: Absolutely amazing. Really appreciate you taking the time to write that all out. I'll get that done tomorrow.
Addendum:

Schedule S 1 of the T2 jacket:

line A = 0
line 500 = 0
line B = 0
line 510 = 0
line C = 0

that's all folks! Smiling Face With Open Mouth And Smiling Eyes
Deal Fanatic
User avatar
Nov 2, 2013
5508 posts
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Edmonton, AB
There's a simplified t2 return for that particular circumstance: the t2 short

Just fill it out, print it off, mail it off to your tax center that handles t2 returns. You'll also need to do schedule 100 and 125 - found on cra website. One of them is basically a simple balance sheet and the other simple profit and loss statement.


Should be the PEI office if youre in the east; Winnipeg tax centre elsewhere.
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[OP]
Member
Aug 21, 2016
276 posts
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Thanks again. Followed the instructions here and sent it in. Hopefully it's all ok.

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