CDA Worksheets and the T2054

Updated: 2020-07-22

Three worksheets in TaxCycle T2, you calculate and track current-year, prior-year and next-year Capital Dividend Account (CDA) balances and complete the T2054 Election for a Capital Dividend Under Subsection 83(2).

CDA Prior Year worksheet

Use the CDA Prior Year worksheet to track prior-year CDA details:

  1. When you carry forward a return, TaxCycle automatically creates a record for the prior year CDA.
  2. If you are starting a new return, you can create a new prior-year CDA record. Enter the year-end date and then applicable amounts in the first column.
  3. The second column contains a running total of all prior years.
  4. Similar to the S8Asset worksheet, the toolbar at the top of the worksheet allows you to quickly switch between years, add new records and delete records.
  5. Scroll to the second page of this worksheet to see the prior-year T2054 (or enter details of prior-year claims there).

Complete the prior-year CDA worksheet

CDA Current Year worksheet

Use the CDA Current Year worksheet to calculate the CDA balance for the current year:

  1. Many amounts flow from the related schedules, such as the S6 or S3. Double-click on a field with the blue arrow to jump to the source field (or press F6).
  2. Scroll to the second page of the worksheet to see the completed T2054.
  3. The T2Summary will show the CDA balance at the end of the year.
  4. When you print the CDA Current Year worksheet, it also prints the T2054.

Current year CDA worksheet

CDA Next Year worksheet

Use the CDA Next Year worksheet to prepare T2054 for the period after the tax year end of the corporation for which you are preparing the T2 return.

  1. The first page of the CDA Next Year worksheet shows the date that is one year from the year end of the current file.
  2. The second page of the worksheet contains the T2054 form.
  3. When you print the CDA Next Year worksheet, it also prints the T2054. 

Next Year CDA worksheet and T2054