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Partnership Information Return Guide - Partner ACB Relief Provided 

Canadian Tax Adviser

 

November 12, 2013

 

Julia Clarkson
Ottawa, East

 

Dan Vance
Deputy Business Unit Leader, GTA Tax

 

The CRA recently revised Guide T4068, "Guide for the Partnership Information Return (T5013 Forms) - 2013", for 2013, including changes to the forms, schedules and slips. The most notable change for this year is the elimination of the requirement to report each partner's adjusted cost base (ACB) at the end of the fiscal year.

Among other minor changes, the T5013 slip has also been revised to include information previously reported on the T5013A slip, as this slip has now been eliminated. The guide also provides information on online account access, electronic filing for partnership returns in 2014 and enacted 2012 federal budget measures that apply to partnerships.

 

Revised ACB and ARA reporting - Schedule 50
Among other changes, the CRA has eliminated the following fields from Schedule 50, "Partner's Ownership and Account Activity":

 

  • ACB at the end of the fiscal period
  • Subsection 96(2.3) adjusted ACB
  • At-risk amount (ARA) at the end of the fiscal period.

 

In the guide, the CRA notes that these fields were eliminated because partnerships may not have the information required to calculate their partners' ACB and ARA.

 

KPMG observation — Although the ending ARA is no longer required to be reported on the revised Schedule 50, it still needs to be reported on the T5013 slip for each limited partner if the limited partner is claiming its share of limited partnership losses.  If no ARA amount is reported on the T5013 slip for the limited partner, the CRA will consider the amount to be zero and the limited partner will not be able to claim its share of the limited partnership losses.

 

In the revised schedule 50, partnerships will now need to provide the total acquisition cost of the partnership interest (excluding the cost of units acquired during the fiscal period, which is reported separately). If the partnership does not have this information, the guide indicates that the partnership should enter "zero". Partnerships will also still have to report the following, for each partner:

 

  • Percentage of partner's interest
  • Share of net income (or loss) for tax purposes for the fiscal period
  • Cost of units acquired during the fiscal period
  • Share of the previous fiscal period's net income (or loss) or tax purposes
  • Capital contributions in the fiscal period
  • Withdrawals in the fiscal period
  • Other adjustments
  • Share in certain reductions of resource expenses for the fiscal period
  • Non-arm's length debt owing and/or benefits receivable.

 

For more information, contact your KPMG adviser.

 

 

 

 

 

Information is current to November 12, 2013. The information contained in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's National Tax Centre at 416.777.8500

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