Steps to follow to file a partnership’s information return
Below are outlined the steps involved in preparing a partnership’s information return. Following these steps can help you decrease the time spent preparing this return and reduce the risk of errors:
- Prepare the GIFI:
- Complete the statement of financial position.
- Complete the income statement(s).
- Complete the notes checklist.
- Consult and correct GIFI-related diagnostics.
- Prepare the partnership’s financial return (T5013 Financial), the applicable schedules and the T5013 slips:
- T5013 Financial: Enter the partnership’s identification information.
Complete the applicable schedules among the following: 2, 5, 6, 8, 9, 12, and 52. (Note that Schedule 50 will be completed automatically with data entered in the T5013/RL-15 Data entry screen).
- Schedule 1: Enter the applicable items to add or deduct.
- Worksheet A: Specify the partnership’s different sources of income.
- Worksheet C: Enter the information required to keep track of the reserves on disposition of capital property, if applicable.
- Worksheet B: Enter the information required to allocate amounts to partners.
- T5013/RL-15 Data entry screen: Enter the information required to file the T5013 slips.
- Consult and correct diagnostics issued by the program.
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Print or electronically transmit the partnership’s financial return (T5013 Financial), applicable schedules and T5013 slips and summary.
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If not electronically filing, send the partnership’s information return to the tax authorities.
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Distribute the T5013 slips to the partners.
Note:
A partnership that transmits its partnership information return electronically does not have to send notes to the financial statements to the CRA. These notes must be kept by the partnership to be provided to the CRA for future review, if applicable.
How to make the partnerships financial return applicable for filing
In order for Form T5013 Financial to be applicable, ensure that one of the following criteria is met:
- at the end of the fiscal period,
- the combined absolute value of the partnership’s revenue and expenditures (Schedule 125, items 8299 and 9368 or items 9659 and 9898) is more than 2 million or the partnership has assets of more than 5 million (Schedule 100, item 2599);
- at any time in the fiscal period,
- the partnership is a tiered partnership (it has another partnership among its partners (T5013 Schedule 50, box 105) or the partnership itself is associated with another partnership (T5013 Schedule 5, Part 2));
- the partnership has among its partners a corporation or a trust (T5013 Schedule 50, box 105); or
- the partnership acquired flow-through shares from a principal-business corporation that incurred expenditures relating to Canadian resources and renounced those expenditures in favour of the partnership (T5013 Financial, box 252);
- the partnership has been inactive throughout the fiscal period (T5013 Financial, box 280); or
- one or more T5013 slips are applicable and at least one of boxes 062-01 and 062-02 of Form T5013 Financial is selected.
Nominees and agents
Every person who holds an interest in a partnership as a nominee or agent for another person has to complete and file with the CRA a separate T5013SUM form, and the related T5013 information slips for each partnership in which an interest is held for another person. Filing of Forms T5013 FIN, Partnership Financial Return and T5013 SCH 50, Partner’s Ownership and Account Activity is no longer required. For more information, consult the Guide T4068, Guide for the Partnership Information Return (T5013 Forms).
Exemption for family farm partnerships from filing T5013 Partnership Information Return
For the 2013 and 2014 fiscal years, family farm partnerships formed of individuals (those who file T1 income tax and benefit returns) do not have to file a T5013 return. However, a farm partnership that includes a trust or a corporation is still required to file a T5013 return. This information has been published on the CRA Web site.
Where to send the paper-filed T5013 Partnership Information Return
The T5013 Partnership Information Returns should be sent to the following tax centre:
Prince Edward Island Tax Centre
275 Pope Road
Summerside PE C1N 6A2
Instructions to complete the partnership’s financial return (T5013 Financial), applicable schedules and T5013 slips
For more information on how to proceed to complete the partnership’s financial return (T5013 Financial), applicable schedules and T5013 slips, consult Guide T4068, Guide for the Partnership Information Return (T5013 Forms).