T1206(Page 5) - fill out and auto calculate/complete form online

Canada Revenue
Agency

Agence du revenu
du Canada

Tax on Split Income – 2018

Protected B when completed

Before you complete this form, read the attached information section. Attach this form to your return.

Dispositions of certain capital property – shares subject to tax on split income (TOSI)

Complete this part if you (or a trust of which you are the beneficiary) disposed of shares to a person with whom you do not
deal at arm's length, and the dividends from those shares would be subject to TOSI.

Capital gain on dispositions in 2018

Amount of 2017 reserve (from line C of Form T1206 for 2017)

Amount of 2018 reserve (calculated below)

–

Line B minus line C (if negative, show in brackets)

►

Line A plus line D

Capital gains from box 21 of your T3 slip(s) (relating to dispositions in 2018)

Line E plus line F

If you were under 18 years of age at the end of the year, the amount at line G is deemed to be a dividend (other than eligible
dividend). Multiply the amount on line G by 1.16 and include this amount under "Taxable amount of dividends (eligible and other than
eligible) from taxable Canadian corporations" on the worksheet for your return, and on lines 120 and 180 of your return. In addition,
enter the amount from line G on line 1 in Part 1 below. Do not include this amount on Schedule 3.

If you were 18 years of age or older in 2018, enter the amount from line G on the applicable line(s) of Schedule 3. In
addition, enter the amount from line G on line 3 in Part 1 below.

Calculation of reserve

Complete this calculation for dispositions made after March 21, 2011, and include the total amount of your 2018 reserve on
line C above. You can claim a reserve up to a maximum of four years for each disposition. Your reserve in each year cannot
be more than the lesser of the following two calculations (use a separate sheet of paper for multiple dispositions):

Amount payable after the

Year

(i)

Capital gain

end of the year

of sale

after sale

Proceeds of

80%

1st year: 60%

disposition

2nd year: 40%

Applicable percentage for year

3rd year: 20%

(ii)

Capital gain

of sale or year after sale

4th year: 0%

Part 1 – Split income

Part of the taxable amount of dividends (eligible and other than eligible)

described in the information section received from taxable Canadian corporations

6835

Part of the taxable amount of dividends other than eligible dividends,

included on line 1, from taxable Canadian corporations

6834

All other split income (see the definition in the information section)

Total split income: Add lines 1 and 3. Enter this amount on line 232 of your return.

6836

Net income from line 236 of your tax return

TOSI-adjusted net income: line 4 plus line 5 (see note below)

Note

Use the TOSI-adjusted net income from line 6 to calculate the federal amounts amount you can claim, if applicable, for:

•

the age amount on line 301 of your Schedule 1

•

the refundable medical expenses supplement on line 452 of your tax return

•

the working income tax benefit (WITB) on line 453 of your tax return

Also, use the amount on line 6 instead of the amount from line 234 of your tax return in the calculation of the social benefits repayment for
lines 235 and 422 of your tax return, if applicable.

Use the TOSI-adjusted net income from line 6 of this form to calculate the provincial and territorial amounts amount you can claim, if
applicable, for:

•

the age amount on line 5808 of Form 428 for all provinces and territories except for Newfoundland and Labrador and Nova Scotia

•

the low income tax reductions on Form 428 for New Brunswick (line 52), for Prince Edward Island (line 54), for British Columbia (line 60),
and for Newfoundland and Labrador (line 67)

•

the Sales tax credit on Form 479 for British Columbia

For more information and further instructions, see "TOSI-adjusted net income" on page 4.

T1206 E(18)

(Ce formulaire est disponible en français.)

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