1.1. Important information

This guide contains instructions on how to file form TP-600-V, Partnership Information Return, and the accompanying schedules. The instructions for completing the RL-15 slip are contained in the Guide to Filing the RL-15 Slip: Amounts Allocated to the Members of a Partnership (RL-15.G-V).

This version of the Guide to Filing the Partnership Information Return pertains to fiscal periods that end in 2025.

1.2. Legal references

The information provided in this guide does not constitute a legal interpretation of the Taxation Act or any other legislation. The numbers and abbreviations at the end of certain paragraphs refer to sections of the Taxation Act (section numbers alone), the Regulation respecting the Taxation Act (section numbers containing an “R”), the Tax Administration Act (section numbers preceded by “TAA”) or the Interpretation Act (section numbers preceded by “Interpretation Act”).

1.3. Definitions

2.1. New tax credit for R&D and pre-commercialization

If, in a fiscal period beginning after March 25, 2025, a qualified partnership incurs scientific research and experimental development (R&D) expenditures or pre-commercialization expenditures, any corporation (other than an excluded corporation) that is a member of the partnership can, under certain conditions, claim the new tax credit for R&D and pre-commercialization for its taxation year in which the partnership's fiscal period ends. Every corporation that is a member of the partnership can claim the tax credit in proportion to its percentage interest in the partnership.

A qualified partnership is a partnership that meets the following conditions for a fiscal period:

• It carries on a business in Québec and has an establishment in Québec.
• It carries out R&D or pre-commercialization activities in Québec in respect of its business (or has such activities carried out for it in Québec under a contract).

To qualify for the tax credit, the expenditures must have been incurred in respect of R&D or pre-commercialization activities carried out by or on behalf of the partnership during its fiscal period. Such expenditures include:

• salaries and wages
• consideration paid to subcontractors
• payments to certain research organizations
• capital expenditures for the acquisition of property

Briefly, the tax credit is based on the part of the R&D or pre-commercialization expenditures that exceeds the applicable exclusion threshold.

The tax credit rate for a corporation that is a member of a qualified partnership is 20%.

For more information, see the instructions for lines 440p to 440y (codes 112 and 113) in guide CO-17.G, Guide de la declaration de revenus des sociétés (in French only).

2.2. Elimination of and changes to tax credits further to the creation of the tax credit for R&D and pre-commercialization

Eliminated tax credits

The following tax credits have been eliminated further to the creation of the tax credit for R&D and pre-commercialization:

• the tax credit for salaries and wages (R&D)
• the tax credit for university research or research carried out by a public research centre or a research consortium
• the tax credit for private partnership pre-competitive research
• the tax credit for fees and dues paid to a research consortium
• the tax credit for technological adaptation services

These tax credits cannot be claimed for a partnership's fiscal period beginning after March 25, 2025.

Special rules apply for purposes of the tax credit for fees and dues paid to a research consortium, in particular with respect to a partnership's eligible fee balance.

Changes to the tax credit for an in-house design activity and the tax credit for a design activity carried out by an outside consultant

Designing products, if it is the continuation of R&D activities in Québec, is considered a pre-commercialization activity for purposes of the tax credit for R&D and pre-commercialization.

The tax credit for an in-house design activity and the tax credit for a design activity carried out by an outside consultant have therefore been adjusted such that industrial design expenditures do not qualify.

As a result, a qualified corporation that is a member of a qualified partnership can no longer claim these tax credits for the partnership's industrial design expenditures for its taxation year that includes the end of a fiscal period of the partnership beginning after March 25, 2025.

2.3. Changes to the tax credit relating to resources

Changes have been made to the tax credit relating to resources.

Eligible expenses

Briefly, there are three categories of eligible expenses:

• Québec mining exploration expenses
• Québec renewable and conservation expenses
• other Québec resource expenses

The tax legislation will be amended such that certain Canadian development expenses incurred in Québec in respect of mineral resources will be considered eligible expenses. The change applies to such expenses incurred by a qualified partnership after March 25, 2025.

Rates applicable to eligible expenses related to mineral resources

Briefly, the rate of the tax credit relating to resources that a qualified corporation that is a member of a qualified partnership can claim in respect of eligible expenses incurred by the partnership varies depending on the type of resource the expenses were incurred for and the region where the partnership incurred the expenses.

The rates have been reduced:

• from 38.75% or 28%, as applicable, to 22.5% for a corporation that is a member of a qualified partnership that does not operate a mineral resource or an oil or gas well
• from 18.75% or 12%, as applicable, to 10% for a corporation that is a member of another qualified partnership

These rates apply to eligible expenses related to mineral resources incurred in Québec after March 25, 2025, regardless of the region where the partnership incurred the expenses.

Temporary increase in the rates applicable to eligible expenses mainly attributable to critical and strategic minerals

The rates of the tax credit relating to resources for eligible expenses related to mineral resources mainly attributable to one or more critical or strategic minerals have been temporarily increased to:

• 45% for a corporation that is a member of a qualified partnership that does not operate a mineral resource or an oil or gas well
• 20% for a corporation that is a member of another qualified partnership

Eligible expenses incurred after March 25, 2025, that are mainly attributable to one or more critical and strategic minerals are eligible for the increased rates if they are incurred and paid before January 1, 2030. After that date, they will be eligible for the rates applicable to eligible expenses related to other mineral resources.

Cumulative eligible expense limit

A cumulative limit of $100 million on eligible expenses per five-year period has been implemented.

The total of a partnership's eligible expenses for a fiscal period cannot exceed the balance of its cumulative eligible expense limit for the fiscal period.

The balance of a qualified partnership's cumulative eligible expense limit for a particular fiscal period is equal to amount by which $100 million exceeds the total eligible expenses that the partnership incurred in a fiscal period ending in the 48 months that precede the fiscal period and for which a qualified corporation that is a member of the partnership could claim the tax credit relating to resources.

This change applies to any qualified partnership whose fiscal period begins after March 25, 2025. Also, eligible expenses incurred no later than March 25, 2025, will not be included in calculating the balance of a qualified partnership's cumulative eligible expense limit.

For more information, see Tax credit.

2.4. Elimination of the capital gains deduction on resource property 

The capital gains deduction on resource property, which can generally be claimed by an individual (other than a trust) on the disposition of certain resource property by a partnership of which the individual is a member, has been eliminated for property disposed of after March 25, 2025. However, it can still be claimed for the following resource property:

• a flow-through share issued or an interest in a partnership acquired, as applicable, before March 26, 2025
• a flow-through share issued or an interest in a partnership acquired, as applicable, before January 1, 2026, if the share was issued or the interest acquired further to an application for a preliminary prospectus made no later than March 25, 2025 (note that this condition must also be met if the property is an interest in a partnership that holds such a flow-through share)
• a flow-through share issued or an interest in a partnership acquired, as applicable, further to a public announcement made on or before March 25, 2025, if the report of distribution form was submitted to the Autorité des marchés financiers on or before May 31, 2025 (note that this condition must also be met if the property is an interest in a partnership that holds such a flow-through share)

For more information, see guide IN-120-V, Capital Gains and Losses, and form TP-726.20.2-V, Capital Gains Deduction on Resource Property.

2.5. Extension of the tax credit for the digital transformation of print media

The tax credit for the digital transformation of print media has been extended for one year. As a result, a corporation that is a member of a qualified partnership can claim the tax credit for eligible digital conversion costs incurred before January 1, 2026. However, if the costs concern the acquisition of qualified property, the property must have been acquired before January 1, 2025.

For more information, see the instructions for lines 440p to 440y (code 105) in guide CO-17.G, Guide de la declaration de revenus des sociétés (in French only).

2.6. Elimination of the tax credit for cultural patronage

The tax credit for cultural patronage was eliminated on March 26, 2025. As a result, if, in a fiscal period, a cash donation of at least $250,000 is made after March 25, 2025, to an eligible cultural donee on behalf of a partnership, an individual (other than a trust) who is a member of the partnership cannot claim the tax credit for cultural patronage in respect of the donation for their taxation year that includes the end of the fiscal period.

In the case of a pledge, an individual can claim the tax credit for cultural patronage in respect of a cash donation of at least $25,000 made after March 25, 2025, if a pledge for the donation was submitted to the Ministère de la Culture et des Communications for registration no later than that date. The individual can therefore claim the credit under the terms in effect before March 26, 2025. Note that the provisions for failing to comply with a pledge still apply in this case.

For more information, see the instructions for lines 73 and 74 — Charitable donations and other gifts.

2.7. Elimination of the additional deductions for Québec resources

The additional deduction for certain Québec exploration expenses and the additional deduction for certain Québec surface mining exploration expenses have been eliminated.

If such expenses are incurred through the flow-through share system, the additional deductions cannot be claimed for flow-through shares issued after March 25, 2025, unless either of the following conditions is met:

• The flow-through shares were issued before January 1, 2026, further to an application for a preliminary prospectus made no later than March 25, 2025.
• The flow-through shares were issued further to a public announcement made on or before March 25, 2025, if the report of distribution form was submitted to the Autorité des marchés financiers on or before May 31, 2025.

Likewise, the additional deductions cannot be claimed for such expenses incurred directly by an operating partnership or a partnership that is a member of an operating partnership after March 25, 2025.

2.8. New cryptoasset return

Any partnership that owns, receives or disposes of cryptoassets or uses them in a transaction in a fiscal period ending in or after 2025 must complete a Cryptoasset Return (TP-21.4.39-V) and enclose it with its return.

Failure to do so could lead to penalties.

For more information, see the instructions for Line 25a – Cryptoassets.

2.9. Requirement to report foreign property

For fiscal periods ending after December 30, 2025, partnerships that are resident in Québec must report any property they hold outside Canada under certain conditions.

For more information, see the instructions for Line 25b – Foreign property.

2.10. Accelerated CCA for new purpose-built rental housing

The CCA rate for new purpose-built rental housing (building or part of a building located in Canada) is 10% instead of 4% if:

• the housing is included in class 1;
• construction began after April 15, 2024, but before January 1, 2031; and
• the housing is considered available for use before January 1, 2036.

To qualify for the accelerated CCA, such housing must also meet conditions, including the following:

• It has at least four rental units (residential units that are not made available to travelers or vacationers) that are private apartments (residential units with a private kitchen, bathroom and living room), or at least ten rental units.
• At least 90% of the residential units are rented long term.

For more information, see “Buildings (Class 1)” under Schedule B – Capital Cost Allowance (CCA).

2.11. Accelerated capital cost allowance (CCA) for property in classes 44, 46 and 50 (100% rate)

The CCA rate for property in classes 44, 46 and 50 is 25%, 30% and 55%, respectively. If it was acquired after April 15, 2024, and is available for use before January 1, 2027, this property may, under certain conditions, qualify for accelerated CCA at a rate of 100%.

Note that accelerated CCA is granted only for the first year a property is available for use.

2.12. Extension of the accelerated investment incentive

A partnership can benefit from the accelerated investment incentive if it has acquired:

• property in class 54 (zero-emission vehicles), 55 (zero-emission trucks, tractors, taxis and rental vehicles) or 56 (zero-emission automotive equipment); or
• property in another class that constitutes accelerated investment incentive property (AIIP).

From 2024 to 2028, the accelerated investment incentive will be phased out.

However, as of January 1, 2025, the incentive applies in full for eligible property acquired on or after that date and considered available for use before 2030. From 2030 to 2033, it will then be phased out again.

For more information, see the Guide de la déclaration de revenus des sociétés (CO-17.G).

2.13. Sale of shares to a worker cooperative

If a partnership sells shares of a corporation to a worker cooperative, any individual (other than a trust) who is a member of the partnership may, under certain conditions, be exempt from tax on the first $10 million in capital gains realized on the transaction.

This applies to qualifying sales made after December 31, 2023, but before January 1, 2027.

3.1. Partnerships

Under the Civil Code of Québec, a partnership is an institution by virtue of which two or more persons accept to carry on an activity together (including the operation of a business) with a view to making a profit that is shared among themselves.

If the partnership is governed by the legislation of another Canadian province, it is defined as an institution characterized by the relationship that exists between persons jointly carrying on a business with a view to making a profit.

Partnerships can be general partnerships, limited partnerships or undeclared partnerships.

A general or limited partnership constituted in Québec is required to register with the Registraire des entreprises by filing a declaration of registration as prescribed by the Act respecting the legal publicity of enterprises. If a partnership does not register, it is deemed to be an undeclared partnership.

A partnership exists only if each partner contributes corporeal or incorporeal property, credit, skills, etc., and shares in the profits, and if the intention to form a partnership exists. A partnership may exist whether or not the partners are bound by a written contract. Partners hold an interest in the partnership, but do not own the partnership's property. The existence of a partnership is determined essentially on the basis of the nature and extent of the relationship among the persons.

A partnership is not subject to income tax, and it is the members who must report their share of the partnership income or losses on their income tax returns. However, a specified investment flow-through partnership (SIFT partnership) is subject to income tax on a portion of its income. For more information, see Specified investment flow-through partnership.

3.2. Obligation to file an information return

The following types of partnerships must file a Partnership Information Return (form TP-600-V) for every fiscal period:

1. any partnership that carries on a business:
   • in Québec, or
   • in Canada, outside Québec, where one of its members is an individual (including a trust) that is resident in Québec or a corporation that has an establishment in Québec;
2. any Canadian partnership or specified investment flow-through partnership (SIFT partnership) with a member who is an individual (including a trust) who is resident in Québec or a corporation that has an establishment in Québec;
3. any partnership that owns a specified immovable and has a specified trust as a member.

Notwithstanding the rules stated in points 1 and 2, a Revenu Québec administrative policy exempts a partnership from filing an information return if it satisfies all of the following conditions:

• at the end of its fiscal period:
  • the total absolute value of its revenue and expenses was less than $2 million,
  • the value of its assets was less than $5 million;
• throughout the fiscal period:
  • it had no more than five members, none of which was a partnership, trust or corporation,
  • it was not an interposed partnership (that is, it was neither itself a member of another partnership nor were any of its members partnerships),
  • no exploration or development expenses were renounced in favour of the partnership, and no amounts of assistance were allocated to the partnership (the partnership must in turn allocate these amounts and expenses to its members) because the partnership invested in flow-through shares,
  • it was not a specified investment flow-through entity (SIFT) having an establishment in Québec,
  • it did not own, receive or dispose of (sell, transfer, exchange, donate, etc.) any cryptoassets or use them in a transaction.

If the partnership does not file an information return because of this administrative policy, section 1007.1 of the Taxation Act will not apply.

A SIFT partnership covered by point 2 above must file an information return if it has an establishment in Québec. It must enclose with the return a duly completed copy of form TP-1129.71-V, Income Tax Payable by a SIFT Partnership, and, where applicable, the payment of any income tax payable.

3.2.1. Responsibilities of the members of a partnership

Where a partnership is required to file an information return, each member of the partnership is responsible for making sure that the information return is filed for each of the partnership's fiscal periods.

A partnership information return filed by one member is deemed to have been filed by all members. Accordingly, if a member files a return for a fiscal period, the other members are not required to file a return for that period.

Since we may determine or redetermine a partnership's income (or loss) for a particular fiscal period and since, as a rule, a designated partner is the only person authorized to file an objection, one of the members should be named the “designated partner,” and clearly identified as such on the return filed for that period.

3.2.2. Obligation to file RL-15 slips

Any partnership that is required to file the Partnership Information Return (form TP-600-V) must also file RL-15 slips on behalf of its members in order to inform them of their share of income or losses, capital gains or losses, deductions, etc.

A partnership that carries on a business in Canada, outside Québec, and that owns a specified immovable must file RL-15 slips for all its members (including members who are resident outside Québec), where one of the members of the partnership is a specified trust.

References: 359.11, 359.11.1, 1007.1, 1129.71–1129.76; 1086R70, 1086R78; TAA 93.1.1.1

3.2.3. Responsibilities of a mandatary or a representative

A mandatary or a representative who holds interests in a partnership on behalf of investors must file an information return and RL-15 slips on behalf of the investors, taking into account the information in the RL-15 slips that the mandatary or representative received from the partnership.

The mandatary or representative must complete:

• pages 1 to 3;
• section 4.4; and
• Part 3 of Schedule E (if the partnership is a tax shelter).

The information to be entered by the mandatary or representative on lines 28a through 28c of the information return must cover the RL-15 slips that the mandatary or representative is filing, not the RL-15 slips that the partnership has filed.

Reference: 1086R79

3.3. Identification number

A partnership must obtain an identification number if it is required to file an information return. This number must be used when the partnership contacts us or files documents such as:

• the Partnership Information Return (form TP-600-V) and its schedules;
• RL-15 slips;
• documents related to the return.

To obtain the partnership's identification number, you can:

• file the Partnership Information Return (form TP-600-V) or RL-15 slips for the first time;
• complete form LM-1-V, Application for Registration;
• contact us.

Note that the name of the partnership entered on the Partnership Information Return (form TP-600-V) must be exactly the same as the one you gave when you registered the partnership with Revenu Québec.

References: TAA 58.1, TAA 58.1.1

3.4. Partnerships exempted from filing a partnership information return

If a partnership is not required to file the partnership information return, each individual who is a member of the partnership must complete Schedule L of the personal income tax return and enclose it with their return. Each individual must also enclose:

• the partnership's financial statements for the fiscal period (or, as applicable, form TP-80-V, Business or Professional Income and Expenses, or TP-80.AP-V Farming or Fishing Income and Expenses); and
• the particulars concerning the amounts allocated.

For more information, consult the guide Business and Professional Income (IN-155-V).

3.5. Filing requirements

3.5.1. Filing deadline

The return and the required documents (see Documents to file) must be filed:

• by March 31 of the calendar year following the year in which the partnership's fiscal period ended, where, as applicable:
  • throughout the fiscal period, all members of the partnership (including end members in the case of an interposed partnership) were individuals (including a trust),
  • the information return is filed by an investment club;
• within five months after the end of the partnership's fiscal period, if, throughout the fiscal period, all the members of the partnership (including end members in the case of an interposed partnership) were corporations;
• in all other cases, by the earlier of:
  • March 31 of the calendar year following the year in which the partnership's fiscal period ended, and
  • the last day of the fifth month following the end of the partnership's fiscal period.

Deadline for partnerships that invest exclusively in flow-through shares

If the partnership allocates exploration and development expenses or amounts of assistance to its members and it has restricted its activities to investments in flow-through shares, the return must be filed before the end of the third month following the end of the fiscal period.

Reference: 359.11

Deadline for public partnerships to post information online

A public partnership must provide information about the partnership in the prescribed manner and by the prescribed deadline. Such information includes the number of outstanding shares and allocations of income and distributions of capital to its members. The information must be posted on the website of the Canadian Depository for Securities (CDS Innovations Inc.) by the earlier of the following dates:

• 60 days after the end of the calendar year in which the public partnership's fiscal period ended;
• four months after the end of the public partnership's fiscal period.

However, if the public partnership meets the requirements to be considered a public investment partnership, it must post its information on the website of CDS Innovations Inc. no later than 67 days after the end of the calendar year in which its fiscal period ended.

If you are completing the information return for a public partnership, check the box on line 16 of the return.

Reference: 1086R81.2

Deadline for partnerships that cease their activities

If the partnership ceases its activities, it must file any return not yet filed by the earlier of the following dates:

• the 90th day after the date on which the partnership ceased its activities;
• the filing deadline for the return for the fiscal period in which the partnership ceased its activities.

Reference: 1086R81

3.5.2. Documents to file

You must enclose several documents with the partnership information return, in particular:

• the applicable schedules of the return:
  • Schedule A, Partners' Interests and At-Risk Amounts,
  • Schedule B, Capital Cost Allowance (CCA),
  • Schedule D, Member Corporations' Shares of Paid-Up Capital,
  • Schedule E, Summary of Certain Information Entered on RL-15 Slips,
  • Schedule F, Net Income for Income Tax Purpose
• the following forms:
  • form RD-222-V, Deduction Respecting Scientific Research and Experimental Development Expenditures,
  • form TP-1129.71-V, Income Tax Payable by a SIFT Partnership,
  • form TP-21.4.39-V, Cryptoasset Return;
• the partnership's financial statements.

3.5.3. Penalties

Penalty for late filing or for failure to file the return

If the partnership files the return late or fails to file the return, it is liable to a penalty. The penalty is $25 for each day the return is late, up to a maximum of $2,500.

Reference: TAA 59 (1st and 2nd par.)

Penalty for failure to provide information

Members of the partnership are liable to a penalty of $100 if they fail to provide information requested in the return and in the accompanying documents. This applies to all information requested.

Reference: TAA 59.0.2

Penalty for failure to provide certain documents

If certain elections have been made under federal legislation and the members of the partnership fail to send us, by the prescribed deadline, a copy of any document filed with the Canada Revenue Agency (CRA), the members are liable to a penalty. The penalty is $25 for each day a document is late, up to a maximum of $2,500.

Reference: 21.4.7

3.5.4. Filing methods

To complete a computer-generated copy of the return, you must get software from a software developer authorized by Revenu Québec. To learn more about using software, see the guide Information for Software Users (IN-415.A-V), which is intended for partnerships, registered charities and other donees. Note that you cannot file the information return online.

Where to send the documents

The return and accompanying documents must be sent to the following address:

Revenu Québec
C. P. 3000, succursale Place-Desjardins
Montréal (Québec)  H5B 1A4

Filing RL-15 slips

For information on how to file RL-15 slips, refer to the Guide to Filing the RL-15 Slip: Amounts Allocated to the Members of a Partnership (RL-15.G-V).

3.6. Allocation of amounts among partners

Partnerships that are required to file an information return must also file RL-15 slips for its members (also called “partners”). Members use the information from the RL-15 slips to report, in their income tax return (or information return), the portion of the partnership's income or losses allocated to them.

As a rule, income, gains, losses, deductions, credits and other amounts are allocated among the partners in accordance with the terms of the partnership agreement.

However, the allocation of certain amounts must be determined on the basis of the percentage interest (also called “agreed proportion”), which is defined as the share of a partner in the partnership income (or losses) for the fiscal period. If the partnership income and loss for the fiscal period are both nil, the calculation of the percentage interest used for the allocation must be made as if the partnership had an income of $1 million for the fiscal period.

The percentage interest must be entered in box 36 of the RL-15 slip. If an amount that gives entitlement to a tax credit must be allocated, the percentage interest used for the allocation must be entered in box 74. This percentage may be smaller than the percentage in box 36 if the partnership is an interposed partnership.

The amounts to be allocated among members based on their percentage interest are:

• the adjusted cost of a qualifying security within the meaning of the Cooperative Investment Plan (CIP) so that a member that is an individual can claim a deduction for strategic investments;
• the paid-up capital of a member corporation;
• the net income from logging operations used to calculate the logging tax (1/3 of this tax can be deducted from the income tax payable);
• amounts that may entitle members to tax credits, such as:
  • the tax credit for R&D and pre-commercialization,
  • the other R&D tax credits for salaries and wages, for university research or research carried out by a public research centre or a research consortium, for fees and dues paid to a research consortium and for private partnership pre-competitive research,
  • the tax credit relating to resources,
  • the tax credit for investment,
  • the tax credit for investment and innovation,
  • the tax credit for an on-the-job training period,
  • the tax credit for the reporting of tips,
  • the employee training tax credit for small and medium-sized businesses,
  • the tax credit to foster the retention of experienced workers,
  • the tax credit for the retention of persons with a severely limited capacity for employment;
• the special income taxes relating to the above-mentioned credits;
• dividends from cooperatives received in the form of preferred shares and distributed to members during a fiscal period.

The allocation of amounts among the partners may require other adjustments, based on whether or not the partners are specified members, on the type of income or loss, on the type of tax credit, etc.

References: 603.1, 726.42, 965.37.1, 1029.6.0.1.8.3, 1129.0.0.4.1, 1136 (par. 3), 1179

3.7. Registers and supporting documents

A partnership that carries on a business or is required to deduct, withhold or collect an amount under a tax law must keep registers and supporting documents at its establishment or any other location designated or authorized by us. These documents must contain the information that will enable us to calculate any amount that the partnership must deduct, withhold, collect or pay under a tax law.

Unless otherwise indicated in this guide, a partnership is not required to enclose supporting documents with the return. The partnership is required, however, to keep supporting documents and the related registers, in case of an audit.

Registers and supporting documents include the following (regardless of the storage medium):

• invoices, receipts and other documents substantiating the information that is or should be entered in a register;
• any document that is used to collect and compare data for accounting, financial, fiscal, legal or other purposes, such as a general journal and special journals (cash journal, sales journal, cash disbursements journal, purchase journal, etc.), as well as an inventory of property, kept in the prescribed manner.

These registers and supporting documents must generally be kept for six years after the last year to which they apply. In addition, registers and supporting documents in an electronic or digital format must be kept readable for the same period. The partnership must take the necessary steps to ensure and maintain their integrity throughout this period.

Note that if the partnership files a notice of objection, contests a decision or is a party to an appeal under a tax law, it may have to keep its registers and supporting documents for longer than six years.

References: TAA 1.0.1, TAA 34 ff.

4.1. Limited partners

Certain rules apply to a partnership that sustains a loss where one of its members is a limited partner.

A limited partner's share of all of the partnership's losses, whether from a business (other than a farming business) or from property, is deductible up to an allowable amount. The allowable amount is equal to the partner's at-risk amount at the end of the partnership's fiscal period or, if applicable, to the portion of the at-risk amount that exceeds the partner's share of:

• the federal investment tax credit, the federal CCUS investment tax credit, the federal CT investment tax credit, the federal clean hydrogen investment tax credit and the federal CTM investment tax credit;
• the partnership's losses from a farming business for the fiscal period;
• the Canadian and foreign resource expenses incurred by the partnership during the fiscal period (boxes 28 through 31 of its RL-15 slip).

You must take this rule into account when determining the losses to be entered on the limited partner's RL-15 slip. The total amount of these losses must not exceed the allowable amount mentioned above.

If the partnership incurred scientific research and experimental development (R&D) expenditures that created or increased the business loss, the partnership must not allocate a share of this loss (or of the increase in this loss) to the partner.

4.1.1. Limited partnership loss

The term “limited partnership loss” means the portion of a limited partner's share of the partnership's loss from a business (other than a farming business), property loss or issue expenses related to Québec resources (boxes 1, 3 and 65 of the RL-15 slip) that cannot be deducted because of the partner's at-risk amount.

The amount of this loss can, however, be deducted from the partner's taxable income for a subsequent year (hereinafter “given year”), up to the amount by which the partner's at-risk amount at the end of the partnership's fiscal period ending in the particular year exceeds the aggregate of the following amounts:

• the partner's share of the federal investment tax credit, the federal CCUS investment tax credit, the federal CT investment tax credit, the federal clean hydrogen investment tax credit and the federal CTM investment tax credit for the given year;
• the partner's share of the partnership's business losses or property losses for the partnership's fiscal period ending in the given year; and
• the partner's share of the Canadian and foreign exploration or development expenses incurred by the partnership for the fiscal period ending in the given year.

References: 613.1, 726.4.17.11 (3rd par.), 733.0.0.1

4.1.2. At-risk amount

The at-risk amount of a limited partner's interest in a partnership at a specific moment corresponds to the amount by which the aggregate of:

• the adjusted cost base (ACB) of the partner's interest in the partnership at that moment (see the first point of the note below);
• the partner's share of any partnership income derived from any source for the fiscal period that ended, where applicable, at that moment; and
• the partner's share in each of the amounts covered by subparagraph (viii) of paragraph (i) of section 255 of the Taxation Act which must be subtracted from the cumulative Canadian exploration expenses, Canadian development expenses or Canadian oil and gas property expenses that the partnership allocates to the member for the fiscal period;

exceeds the aggregate of:

• the total of the amounts owed at that moment by the partner (or by a person or partnership not dealing at arm's length with the partner) to the partnership (or to a person or partnership not dealing at arm's length with the partnership). However, this total does not include such amounts as the unpaid principal amount of any limited-‌recourse indebtedness used to acquire the interest or any limited-recourse amount pertaining to the interest that is to be deducted in the calculation of the ACB or the cost of the partner's interest in the partnership; and
• the amount or benefit, as applicable, that the partner (or a person not dealing at arm's length with the partner) is entitled to receive, either immediately or in the future and either absolutely or contingently, whether by way of reimbursement, compensation, revenue guarantee, proceeds of disposition, loan or any other form of indebtedness, or in any other form. This amount or benefit is granted or is to be granted for the purpose of eliminating or reducing the impact of a loss that the partner may sustain because the partner holds or disposes of an interest in the partnership, unless the amount or benefit is an amount of assistance that is to be deducted from Canadian exploration or development expenses or Canadian oil and gas property expenses, or if entitlement to receive the amount or benefit results from certain excluded obligations or insurance contracts.

Complete Schedule A to provide the information required for the calculation of the at-risk amount of the partners. See Schedule A – Partners' Interests and At-Risk Amounts.

To calculate the ACB of a partner's interest in the partnership, see Adjusted cost base of an interest.

4.2. Adjusted cost base of an interest

Adjusted cost base (ACB) is a fiscal concept used to determine the capital gain or loss resulting from the disposition of property, in this case an interest in a partnership.

To calculate the ACB of a partner's interest in a partnership at a specific moment, you must adjust the original cost of this interest. If the interest constitutes a tax shelter investment, see the instructions for boxes 53 through 55 under Tax shelter to find out whether you must take into account certain reductions.

You must first add to the original cost of the partner's interest (or to the original cost less certain reductions, such as in the case of a tax shelter investment) the following amounts, among others:

• in most cases, the partner's share of the partnership's income and capital gains (see the first point in the note below) from all sources, for each fiscal period that ended before the moment in question, from the time the partner acquired the interest in the partnership;
• the partner's share of the capital dividends or life insurance capital dividends received by the partnership, from the time the partner acquired the interest in the partnership while they owned it;
• the partner's share of the amount by which any life insurance proceeds received by the partnership exceed the ACB of a policyholder's interest in the policy, from the time the partner acquired the interest in the partnership (exceptions apply);
• the partner's additional capital contributions to the partnership, from the time the partner acquired the interest in the partnership, unless it is a benefit given to another member of the partnership with which they are associated;
• where the partner has been a limited partner or a specified member since becoming a member of the partnership, any amount that, before the moment in question, is deemed to be a capital gain because the ACB of the interest is negative (see Limited partners and specified members below);
• where, were it not for certain legislative provisions, the partnership would be considered to no longer exist or the partner would no longer be considered a member of the partnership, any amount that, before the moment in question, is deemed to be a capital gain because the ACB of the partner's residual interest, determined at the end of the partnership's fiscal period, is negative.

You must then deduct the following amounts, among others, from the result:

• the partner's share of the partnership's losses, including capital losses (see the second point in the note below) from all sources (except any portion of such losses that constitutes a limited partnership loss), resource expenses (Canadian exploration or development expenses, Canadian oil and gas property expenses, foreign resource expenses and share or security issue expenses), and eligible amounts of donations and gifts made by the partnership, for each fiscal period that ended before the moment in question, from the time the partner acquired the interest in the partnership;
• the partner's limited partnership loss for each fiscal period that ended before the moment in question, provided the loss was deducted for a taxation year;
• the amount that the partner elects to consider a capital loss for the taxation year, for an amount deemed a capital gain because the ACB of the interest is negative (see Limited partners and specified members below);
• the partner's drawings, from the time the partner acquired the interest until the moment in question;
• where the partner is a limited partner or has been a specified member since becoming a member of the partnership, the unpaid principal amount of any indebtedness of the partner (for which recourse is limited, either immediately or in the future and either absolutely or contingently) that can reasonably be considered to have been used by the partner to acquire the interest in the partnership. If the interest is a tax shelter investment, do not take the unpaid principal amount into account in calculating the ACB, as the amount must be used to reduce the cost of the interest.

Complete Schedule A to provide the information pertaining to the adjustment of the ACB of the partners' interests during the fiscal period. See Schedule A – Partners' Interests and At-Risk Amounts for instructions.

4.2.1. Limited partners and specified members

Limited partners and partners who have been specified members since becoming members of a partnership may have to report the ACB of their interest in the partnership as a capital gain if the ACB is negative at the end of the partnership's fiscal period (in this case, the ACB of the partner's interest immediately after the end of the fiscal period is nil).

Where the partner in question is a corporation, an individual (other than a trust) or an inter vivos trust and the ACB of the partner's interest is positive at the end of a fiscal period of the partnership, the partner can elect to be deemed to have sustained, at that time, a capital loss (the ACB of the partner's interest is thereby reduced by an amount equal to the amount of the capital loss).

For the purposes of Québec legislation, no such election can be made unless it is made under federal legislation with the Canada Revenue Agency (CRA), in which case it is automatically deemed to be made. If this election is made with the CRA, the partner must send us proof that the election was made.

The capital loss subject to the election made for Québec income tax purposes is equal to one of the following amounts, whichever is less:

• the amount by which any capital gain resulting from a negative ACB exceeds any capital loss resulting from a positive ACB already deducted;
• the ACB of the partner's interest at that time; or
• the amount of the capital loss subject to the election with the CRA plus, if the amount is the maximum amount that the partner could enter, the amount entered on the partner's Québec income tax return.

References: 255(i), 257(l), 261.1, 261.2, 613.5, 618, 642

4.3. Specified investment flow-through partnership

4.3.1. Obligation to pay income tax and allocate amounts as eligible dividends

If a specified investment flow-through partnership (SIFT partnership) has an establishment in Québec and its securities are publicly traded, that partnership must:

• pay income tax on its taxable non-portfolio earnings at the same tax rate as corporations;
• allocate to members their share of the residual amount of taxable non-portfolio earnings (that is, the amount remaining after the federal and provincial income tax payable is deducted from such earnings) as eligible dividends.

If the partnership has an establishment in Québec and an establishment elsewhere in Canada, it must calculate the income tax on its taxable non-portfolio earnings based on the percentage of business carried on in Québec. See the instructions for box 42 in the Guide to Filing the RL-15 Slip: Amounts Allocated to the Members of a Partnership (RL-15.G-V).

If income tax is payable, the partnership must complete form TP-1129.71-V, Income Tax Payable by a SIFT Partnership, and enclose it and its income tax payment with the partnership information return.

References: 603.1, 1129.71

If the return is not filed on time, the SIFT partnership is liable to a penalty equal to 5% of the income tax unpaid by the filing deadline and an additional 1% of that unpaid income tax for each complete month (up to 12 months) that the return is late.

References: 1129.71-1129.76

4.3.2. Income tax instalments

A SIFT partnership is required to make monthly instalment payments by the last day of each month if the estimated income tax payable for the fiscal period concerned and the income tax payable for the previous fiscal period exceeds $3,000 in each case.

Reference: 1129.75

4.3.3. Loss trading during the conversion of a SIFT partnership into a corporation

If, during the conversion of a SIFT partnership into a corporation, several members dispose of their interest in the partnership in exchange for shares of the corporation's capital stock, control of that corporation and of each corporation controlled by it immediately before the exchange is deemed to have been acquired by a person or group of persons at the time of the exchange. This presumption restricts the trading of the corporation's losses following the conversion.

4.3.4. Restrictions applicable to a SIFT partnership with respect to stapled securities

In calculating its income, a SIFT partnership cannot claim a deduction for an amount paid or payable, as applicable:

• as interest on a debt or obligation that is a stapled security of the partnership, unless each reference security of the stapled security is also a debt or an obligation;
• to a REIT (or one of its subsidiaries) or to a person or partnership that pays an amount (or has an amount paid) to a REIT (or one of its subsidiaries), if a security of the partnership (or of one of its subsidiaries or of an entity of which it is a subsidiary) is a reference security of a stapled security issued by the REIT (or one of its subsidiaries).

The following transactions are subject to mandatory disclosure:

• confidential transactions, transactions involving conditional remuneration and transactions involving contractual coverage;
• specified transactions.

Each member of a partnership (or, for a limited partnership, each general partner) that carries out such a transaction is responsible for filing a mandatory disclosure (see the note below).

Advisers and promoters must make a mandatory disclosure for any specified transaction they commercialized or promoted. If the adviser or promoter is a partnership, every member of the partnership is responsible for filing a disclosure (see the note below).

Moreover, a member of a partnership that is not required to make a mandatory disclosure can make a preventive disclosure to avoid the consequences (extension of prescription and the application of penalties) of the possible application of the general anti-avoidance rule to tax planning carried out by the partnership of which it is a member.

If a partnership is party to a nominee agreement with tax consequences, each member of the partnership is responsible for filing a mandatory disclosure for the agreement (see the note below).

For more information, see Mandatory Disclosure of Certain Transactions, Preventive Disclosure or form TP-1079.PN-V, Disclosure of a Nominee Agreement.

References: 1079.8.1 ff.

4.5. Designated member of a partnership for the application of the small business deduction

A Canadian-controlled private corporation (CCPC) may, under certain conditions, benefit from a tax rate reduction, referred to as the “small business deduction” (SBD), which applies to the first portion of $500,000 of income derived from an eligible business carried on in Canada in a given taxation year. This first portion of annual income is referred to as the “business limit.”

To determine the total eligible income for the SBD for a taxation year (subject to the business limit), a corporation that is a member of a partnership must add the specified partnership income to its income derived from a business carried on in Canada other than as a member of a partnership.

The specified partnership income is equal to the corporation's share of the income (or loss) from a qualified business carried on in Canada by the partnership of which it is a member, and cannot exceed its share of the $500,000 business limit applicable to the partnership.

A corporation that supplies property or services to a partnership may be considered a designated member of the partnership if it is not already a member. In this case, its income from such property and services is deemed to be derived from an eligible business carried on in Canada by the partnership.

If the corporation is a designated member of the partnership in the taxation year, it must calculate its specified partnership income for the taxation year, which includes income from property or services supplied, directly or indirectly, to the partnership of which it is a designated member. However, it is not entitled to its portion of the business limit attributable to the partnership, since it is not actually a member. Consequently, its income from property and services supplied to the partnership is not eligible for the SBD.

However, a person (individual, corporation, partnership or trust) that is a member of the partnership can assign to the corporation that is a designated member of the partnership all or a portion of its specified partnership business limit. Thus, the corporation can benefit from the assigned business limit up to the amount of income derived from property or services supplied to the partnership of which it is a designated member. To do so, the member of the partnership and the corporation that is a designated member of the partnership must enclose form CO-771.2.1.AT, Plafond des affaires attribué à une société qui est un membre désigné d'une société de personnes, with their respective income tax returns.

To calculate the specified partnership income and the income derived from an eligible business carried on in Canada of a corporation that is a designated member of the partnership, complete form CO-771.2.1.2, Revenus d'une société provenant d'une entreprise admissible qu'elle exploite au Canada (société qui est un membre ou un membre désigné d'une société de personnes).

Reference: 771.1

5.1. Identification of the partnership

Line 01 – Amended return

Check the box only if you are filing an amended return.

Line 01.1 – Mandatary or representative

Check the box if the return is being filed by a mandatary or a representative that holds interests in the partnership on behalf of investors (see Responsibilities of a mandatary or representative).

Line 01.2 – Dissolved partnership

Check the box if you are filing the return for a dissolved partnership (see the instructions for lines 06a and 06b - Fiscal period).

Line 01a – Québec enterprise number (NEQ)

Enter the Québec enterprise number (NEQ) that was assigned to the partnership by the Registraire des entreprises.

Line 01b – Identification and file numbers

Enter the identification number that we assigned to the partnership, followed by the file number. If the partnership does not yet have an identification number, see Identification number.

Line 01c – Tax shelter identification number

If an interest in the partnership constitutes a tax shelter, enter the identification number that we assigned to the partnership for the tax shelter.

Lines 02 to 03a – Name and address of partnership

Enter the name of the partnership and the address of its principal establishment. If the partnership already has an identification number, enter the name exactly as it was spelled when the partnership was registered with Revenu Québec.

Use a province or territory code from the list.

5.2. Information about the partnership

Lines 05a to 05d – Limited partnership

If the partnership is a limited partnership (see the definition under Partnerships), enter the name and address of the principal general partner on lines 05a to 05c. If the principal general partner is a corporation, enter its identification number on line 05d.

Use a province or territory code from the list.

Lines 06a and 06b – Fiscal period

Enter the start date and end date of the fiscal period covered by the return.

The dates must be the same as the ones established for the purposes of federal legislation. The dates must therefore be the same as the ones entered on the Partnership Financial Return (form T5013-FIN) filed with the Canada Revenue Agency (CRA). Enter the end date of the fiscal period on line 06b of each schedule that you must enclose with the partnership information return.

Under federal legislation, the fiscal period of most partnerships must coincide with the calendar year. However, a partnership to which this obligation applies can elect to have its fiscal period end on a date other than December 31.

Reference: 7 (3rd par.)

Election made under federal legislation concerning the fiscal period

No election to have the fiscal period end on a date other than December 31 can be made for Québec income tax purposes unless it is made under federal legislation, in which case it is automatically deemed to be made. Likewise, unless a request for revocation of an election is made with the CRA, no such revocation is possible for Québec income tax purposes.

Elections that can be made under federal legislation concerning the fiscal period include:

• a multi-tier fiscal alignment election made by an interposed partnership (such an election is no longer possible);
• an election made using federal form T1139, Reconciliation of Business Income for Tax Purposes, concerning the fiscal period of a partnership that is not a member of another partnership and all of whose members are individuals.

The member who was authorized to make an election using federal form T1139 on behalf of all the members must send us a copy of form T1139 no later than:

• 30 days after making the election;
• the filing deadline for their income tax return; or
• the earliest of the filing deadlines that apply to all the members where one of the members (see the note below) of the partnership is a GRE (see the definition below).

A member who does not submit a copy of the form is liable to a penalty for failure to provide certain documents. For more information, see Penalties.

If an election is made, each member must complete form TP-80.1-V, Calculation of Business or Professional Income, Adjusted to December 31, each year to calculate their net income (or net loss) adjusted to December 31, until the election is revoked. Each member must enclose the form with their income tax return.

If the partnership decides to revoke the election it made to have its fiscal period end on December 31, the partnership must, for the first taxation year of the members to which the revocation applies, provide financial statements for two fiscal periods: the first period must end on the date specified in the election, and the second on December 31.

The member of the partnership who is authorized to make the request for revocation must send us a copy of form T1139 no later than the filing deadline for their income tax return or, if one of the members of the partnership is a GRE (see the definition below), by the earliest of the filing deadlines that apply to the members (see the note below).

If the election is revoked, each member of the partnership must complete form TP-80.1-V and enclose it with their income tax return.

New partner

If the partnership did not revoke the election it made concerning the end date of its fiscal period, an individual who became a member of the partnership after the beginning of the partnership's fiscal period but before the end of the calendar year must include in their income, for the calendar year, a portion of the income derived from a business of the partnership for the fiscal period in question. To do so, the individual must complete form TP-80.1-V, Calculation of Business or Professional Income, Adjusted to December 31.

Reference: 217.3

Joint venture

The CRA does not permit taxpayers who are participating in a joint venture to calculate their income as if the venture had a separate fiscal period. This measure is also applied by Revenu Québec since the fiscal period determined for Québec income tax purposes corresponds to the fiscal period determined for federal income tax purposes.

Consequently, if the partnership participates in a joint venture, it must calculate its share of the income (or losses) from the joint venture on the basis of its own fiscal period.

Dissolved partnership

The fiscal period of a partnership is deemed to end immediately before the dissolution of the partnership. However, a partner who is an individual can, for the purpose of calculating their income, elect under federal legislation to consider that the fiscal period of the partnership ended immediately before the moment it would normally have ended, if the partnership had continued to exist. No such election can be made for Québec income tax purposes unless it is made under federal legislation, in which case it is automatically deemed to be made. A member must provide us with proof that such an election was made with the CRA. A member who fails to send us proof is liable to a penalty for failure to provide certain documents. For more information, see Penalties.

This election has no effect on the partnership's return. Further to the dissolution of the partnership, you must file any return that the partnership failed to file for a previous year.

Reference: 601

Lines 09 to 09g – Principal activity

Check the box that best describes the partnership's principal activity. If you check box 09g, briefly describe the activity in the space provided.

Lines 11a to 25 

Check the applicable boxes and provide the requested information.

For box 16, see Deadline for public partnerships to post information online.

For the purposes of the filing deadline given under Filing deadline, you must check only one of the following boxes on the return:

• box 24a, if all the members of the partnership are individuals (including trusts);
• box 24b, if all the members are corporations or partnerships whose members are corporations.

On line 25, enter the code corresponding to the functional currency (USD, EUR, GBP, AUD or JPY) chosen.

Line 25a – Cryptoassets

Check “Yes” if the partnership owned, received or disposed of (sole, transferred, exchanged, donated, etc.) cryptoassets or used them in a transaction. You must also complete a Cryptoasset Return (form TP-21.4.39-V) and enclose it with the return. Failure to do so could lead to penalties. If the partnership did not own, receive or dispose of cryptoassets or use them in a transaction, check “No.”

The use of cryptoassets as a method of payment or medium of exchange is considered a barter transaction.

There may be tax consequences if the partnership, among other things:

• uses cryptoassets to acquire goods or services;
• accepts them as a form of payment or medium of exchange in the course of carrying on its business;
• converts them to monetary currency;
• exchanges them for other cryptoassets;
• uses cryptoassets to make a gift or donation;
• leases or lends them.

Similarly, there may be tax consequences if the partnership mines cryptoassets.

To properly report partnership information, you must determine whether the cryptoasset use generates a capital gain (or loss) or business or property income (or loss). To do so, refer to the guides Capital Gains and Losses (IN-120-V) and Business and Professional Income (IN-155-V).

Line 25b – Foreign property

Check “Yes” if the partnership held property outside Canada during a fiscal period ending after December 30, 2025, and the following conditions are met:

• The property is designated foreign property.
• The total cost of the property exceeded CAD 100,000 at any time during the taxation year.

If so, you must complete a Foreign Property Return (form TP-1079.8.BE-V) and enclose it with the partnership's return or mail it to us separately by the filing deadline for the partnership's return for the fiscal period. Failure to file the form could lead to penalties. You must file form TP-1079.8.BE-V even if there is no information return to file for a fiscal period during which the partnership held designated foreign property.

Designated foreign property includes:

• funds or incorporeal property (for example, patents and copyrights) situated, deposited or held outside Canada;
• corporeal property situated outside Canada;
• a share of the capital stock of a corporation not resident in Canada held by the partnership or its legal or authorized representative;
• an interest in a trust not resident in Canada that was acquired for consideration (other than an interest in a non-resident trust that is a foreign affiliate);
• a share of a corporation resident in Canada held by or for the partnership outside Canada;
• an interest in a partnership that holds designated foreign property but is not required to report it;
• an interest in, or rights with respect to, an entity not resident in Canada;
• property that is convertible into, is exchangeable for, or confers a right to acquire designated foreign property;
• indebtedness owed by a person not resident in Canada, including government and corporate bonds, debentures, mortgages and notes receivable;
• an interest in a foreign insurance policy;
• precious metals, gold certificates and futures contracts held outside Canada.

Property used or held exclusively in the course of carrying on an active business and personal-use property are not considered designated foreign property.

For more information, see form TP-1079.8.BE-V.

Lines 26a and 26b – Address where registers are kept

Enter the address where the partnership's registers are kept, if it is different from the address on line 3.

5.3. Information to enter on RL-15 slips

In Part 3 of the return, it is important to enter the amounts on the appropriate lines because the tax treatment of income and losses under the Taxation Act differs according to the source of the income or loss (business, farming, etc.).

The partners' share of the amounts entered on lines 30 through 74 must be reported on the RL-15 slip. Certain exceptions apply, however, to limited partners and specified members.

The source and nature of the income (or loss) entered on the RL-15 slip must correspond to the source and nature of that income (or loss) entered on the return.

5.3.1. Canadian and foreign income, gains and losses

Lines 30 to 34.1 and 40 to 44.1 – Business income (or losses)

Enter the gross business income and the net business income (or net business loss) only. Include business income from both Canadian and foreign sources.

Enter on lines 30 and 40, respectively, the gross income and the net income (or net loss) from a business (including a rental business) other than a business described on lines 31 through 34 and lines 41 through 44.

Use Schedule F to adjust the net income (or net loss) shown in the financial statements so that you can obtain the net income for income tax purposes. The adjustment is necessary, for example, where a type of income (or loss) or expenditure is treated differently for accounting purposes and for income tax purposes.

For more information, see Schedule F – Net Income for Income Tax Purposes.

Lines 36 to 46 – Rental income (or loss)

Enter the gross income derived from the rental of immovables (with or without leasing property) that is property income and the corresponding net income (or net loss), whether the immovables are located in Canada or elsewhere. For more information, see Foreign income and foreign income tax paid.

Use Schedule F to adjust the net income (or net loss) shown in the financial statements in order to obtain the net income for income tax purposes. The adjustment is necessary if an income (or loss) or an expense is treated differently for accounting purposes and tax purposes.

For more information, see Schedule F – Net Income for Income Tax Purposes.

Rental income – Distinction between business income and property income

A rental activity may be considered a business (for example, the operation of a motel or a campground) or an investment producing property income. In this guide and in the related forms, such property income is called “rental income.”

You must enter the gross income (or gross loss) and the net income (or net loss) from the rental of property:

• on lines 30 and 40, if the rental activity can be compared to the operation of a business; and
• on lines 36 and 46, if the activity is considered an investment producing rental income that is property income.

Whether the rental activity is an investment or a business, there is a limit to the CCA the partnership can deduct for rental property (immovables rented with or without leasing property). See Limit on CCA – Rental property and computer software tax shelter property. For instructions for completing column J of Schedule B, see Schedule B – Capital Cost Allowance (CCA). Income derived from rental property is usually collected in the form of rent, which a person pays for the right to use or occupy a dwelling or commercial premises and for the right to services made available with respect to the use or occupation.

Line 37 – Total gross business and rental income

The total on line 37 includes the gross income from all businesses and from all property that is rental property.

You must add the amount on line 37 (not the partner's share of the amount) and the amounts from line 51a to 53, and enter the result in box 14 (“Gross income of the partnership”) of each partner's RL-15 slip.

Lines 51a and 51b – Actual amounts of eligible dividends and ordinary dividends

Enter the actual amount of dividends from taxable Canadian corporations paid or deemed to have been paid to the partnership on:

• line 51a, if the dividends are eligible dividends; or
• line 51b, if the dividends are ordinary dividends (dividends other than eligible dividends).

Members who are individuals may be entitled to the dividend tax credit for these dividends.

Do not take into account carrying charges or interest expenses; enter them on line 54 instead.

Line 52 – Other investment income from Canadian sources

Enter the following amounts:

• interest income from Canadian sources that is property income and that was included in the partnership income for the fiscal period;
• other investment income (in particular, taxable dividends received from a tax-exempt Canadian corporation and taxable dividends received under a dividend rental arrangement).

Do not take into account carrying charges or interest expenses; enter them on line 54 instead.

Line 53 – Foreign investment income

Enter, in Canadian dollars, all foreign non-business income (dividends, interest, etc.).

Do not take into account carrying charges or interest expenses; enter them on line 54 instead.

Lines 60 and 62 – Capital gains (or losses) from the disposition of capital property

Enter the capital gains (or losses) on qualified small business corporation shares, shares sold to an employee ownership trust or qualified farm or fishing property on line 60, even if the property is resource property.

Enter the capital gains (or losses) on all other capital property on line 62.

When calculating capital gains (or losses), do not:

• deduct a reserve relating to the disposition of capital property;
• convert capital gains into taxable capital gains, or capital losses into allowable capital losses; or
• include a business investment loss.

However, you must include on line 60 the reserves to be treated as capital gains for the fiscal period, that is, the reserves deducted for the previous fiscal period.

For more information, see the guide Capital Gains and Losses (IN-120-V). The guide also contains information about:

• the income tax exemption for capital gains realized on the donation of certain types of property;
• the income tax exemption for capital gains realized on the donation of flow-through shares listed on a stock exchange;
• the income tax exemption for capital gains realized on the donation of exchangeable securities;
• losses sustained on the disposition of property involving an affiliated person;
• capital losses sustained on the disposition of non-depreciable property;
• capital losses sustained on the disposition of depreciable property.

Lines 61 and 63 – Reserves

Enter the amounts to be allocated among the partners as reserves on:

• line 61, if the reserves are related to qualified small business corporation shares, shares sold to an employee ownership trust or qualified farm or fishing property;
• line 63, if the reserves are related to any other capital property.

The amount that a partner can claim as a reserve on an income tax return for the disposition of property must be equal to the lesser of the following amounts:

• the amount of the reserve claimed for federal income tax purposes;
• the amount of the reserve to which the partner is entitled for Québec income tax purposes.

Reference: 234(b)

For more information about the amount that a partner can claim as a reserve and how to calculate it, see guide IN-120-V.

Line 70 – Business investment loss

On line 70, enter the business investment loss sustained by the partnership.

For more information, see guide IN-120-V.

5.3.2. Foreign income and foreign income tax paid

Lines 71a to 72 – Foreign income and foreign income tax paid

Enter:

• on lines 71a and 71, respectively, the total net foreign non-business income (or net foreign non-business losses) and any foreign income tax paid on the net income;
• on lines 72a and 72, respectively, the total net foreign business income (or net foreign business losses) and any foreign income tax paid on the net income.

The partnership must report all income (and losses) from foreign sources. As a rule, the amount of such income must be converted to Canadian dollars, using the exchange rate in effect on the date of the transaction. If transactions were made on different dates during the year, you can use the average exchange rate for the year. However, in the case of capital transactions, you must use the exchange rate in effect on the date of the transaction. For information on the exchange rate, go to bankofcanada.ca.

Do not subtract from foreign income the foreign income tax withheld at source or paid by the partnership. You must differentiate the foreign income tax on business income from the foreign income tax on non-business income so that each partner's share of the foreign income tax is accurately entered in box 17 or box 18 of the partner's RL-15 slip.

References: 21.4.17, 146, 146.1, 772 ff.

5.3.3. Other amounts

Line 50 – Capital cost allowance related to the rental of property (including the rental of certain films)

Enter the total CCA related to a rental business that has been deducted on line 62 of Schedule F.

Line 54 – Carrying charges and interest expenses

Enter the total amount of carrying charges and interest expenses incurred to earn property income other than rental income, in particular:

• interest paid or payable on amounts borrowed to earn investment income;
• carrying charges (such as fees, other than commissions, paid to an investment counsellor for advice on buying or selling certain securities, or for the administration or management of securities);
• financing expenses (issue expenses, expenses related to the sale of interests in the partnership and borrowing costs), where the partnership ceased to exist during the fiscal period.

Reference: 157(d)

Financing expenses

The financing expenses that the partnership incurred during a fiscal period cannot be deducted in whole for that period. The deduction of financing expenses must be spread over a period of, as a rule, five years (the maximum deduction for each fiscal period is equal to 20% of the total amount of expenses and is prorated according to the number of days included in the fiscal period and 365).

If the partnership ceased to exist at some time in a fiscal period, it cannot deduct, for the fiscal period, any financing expenses that it could have deducted in the five-year period had it continued to exist. However, its members can allocate the deduction (eligible deduction) that the partnership could have claimed each year for the rest of the five-year period.

The annual eligible deduction is allocated among the partners according to the proportion representing the FMV of each partner's interest and the fair market value (FMV) of all interests (immediately before the partnership ceased to exist). To allocate the eligible deduction, use the formula A ×times B ÷divided by C, where:

A represents the amount of the annual eligible deduction;

B represents the FMV of the partner's interest immediately before the partnership ceased to exist;

C represents the FMV of all interests in the partnership at that time.

Once you have obtained the results for each year and each partner, you must:

• inform each of the partners of the amounts they can deduct for financing expenses during the remainder of the five-year period, for their taxation year that ended at the time the partnership ceased to exist or after;
• enter the total of the annual deductions in box M on line 11 of Schedule A (see Box M – Other adjustments during the fiscal period).

Line 55 – Dividend rental arrangement compensation payments

Enter the total compensation payments paid by the partnership as taxable dividends.

Line 56 – Patronage dividends from cooperatives

Enter the total amount of dividends from cooperatives that the partnership received.

Lines 73 and 74 – Charitable donations and other gifts

Enter:

• on line 73, the total eligible amount of charitable donations;
• on line 74, the total eligible amount of other gifts.

Take into account, where applicable, the increased eligible amount for certain property. To learn more, see:

• Increase in the eligible amount of a gift of a work of art;
• Increase in the eligible amount of a gift of an immovable to be used for cultural purposes; and
• Increase in the eligible amount of a food donation.

Gifts made on behalf of the partnership are considered to have been made by its members during their taxation year in which the partnership's fiscal period ended. If the gifts were deducted in the partnership's financial statements, they must be adjusted on line 11 of Schedule F.

You must also take into account the eligible amount of charitable donations and other gifts based on the official receipts issued to the partnership. Enclose the receipts with the information return. Each partner can claim a tax benefit (such as the tax credit for donations and gifts, or, where the partner is a corporation, a deduction for donations and gifts) for the partner's share of the amounts on lines 73 and 74.

Charitable donations

Charitable donations are gifts made to qualified donees, other than gifts of cultural property, ecological gifts or gifts of a musical instrument (refer to Table 1).

Restriction applicable to a charitable donation of a work of art

For a work of art donated on behalf of a partnership, partners can claim a tax benefit for the taxation year in which the partnership's fiscal period in which the donation was made ended, provided the donee sold the work of art by December 31 of the fifth year after the calendar year in which the donation was made. If the partnership cannot take into account such a donation at the time it files its information return because it has not yet received the official receipt, the partners keep their right to their share of the eligible amount of the donation made on behalf of the partnership during one of its fiscal periods, as long as the work of art is sold within five years after the donation.

The requirement to sell the work of art within five years does not apply if the donee:

• acquired the work of art as part of its primary mission;
• is a registered museum, a registered Canadian municipality, a registered municipal or public body performing a function of government in Canada, the Government of Canada or a provincial government;
• a registered charity whose mission is education, if it received a public work of art (see the information below concerning the 50% increase in the eligible amount of the gift).

Increase in the eligible amount of a gift of a work of art

The eligible amount of a gift of a work of art can be increased by 25% if the gift was made to a Québec museum (a museum situated in Québec or a museum that was recognized or accredited at the time of the gift).

In the case of a public work of art or a gift of cultural property, the eligible amount of the gift must be certified by the Minister of Culture and Communications or the competent authority for this type of gift (see the information regarding gifts of cultural property in Table 1), and can be increased by 25% or 50%.

Accordingly, the eligible amount of a gift of a public work of art can be increased by 25% if the gift was made to one of the following donees (unless the eligible amount was previously increased by 25% because the public work of art was donated to a Québec museum):

• the Québec government (unless the gift was made to an educational institution that is a mandatary of the State);
• a Québec municipality or a municipal or public body performing a function of government in Québec (unless the gift was made to a school service centre) provided that, according to the certificate issued by the Minister of Culture and Communications, the work was acquired by the municipality or the body in accordance with its policy of acquisition and conservation of public works of art.

The eligible amount of a gift of a public work of art can be increased by 50% if the gift was made to one of the following donees:

• an educational institution that is a mandatary of the State;
• a school service centre governed by the Education Act or a school board governed by the Education Act for Cree, Inuit and Naskapi Native Persons;
• a registered charity whose mission is education and that is:
  • an educational institution established under Québec law, other than a mandatary of the State,
  • a general or vocational college (CEGEP),
  • an educational institution at the university level referred to in paragraphs 1 to 11 of section 1 of the Act respecting educational institutions at the university level, or
  • a private educational institution accredited for the purposes of subsidies under the Act respecting private education.

In this case, the certificate issued by the Minister of Culture and Communications must also confirm that the work of art acquired by the donee will be installed in a place accessible to students and that its conservation can be ensured.

Increase in the eligible amount of a gift of an immovable to be used for cultural purposes

Where a gift of a building located in Québec that can house artist studios or cultural organizations was made on behalf of the partnership, the eligible amount of the gift can be increased by 25%.

The partnership must generally hold a qualification certificate for the building and a certificate confirming the FMV of the building (the FMV includes the value of the land on which it is located) issued by the Minister of Culture and Communications or, in the case of a cultural gift, a document issued by the competent authority for this type of gift (for information regarding gifts of cultural property, see Table 1). The gift must have been made to one of the following donees:

• a Québec municipality or a municipal or public body performing a function of government in Québec;
• a registered charity operating in Québec for the benefit of the community, such as the Société d'habitation et de développement de Montréal, or in the arts or culture sector;
• a registered cultural or communications organization;
• a registered museum.

Increase in the eligible amount of a food donation

The eligible amount of a food donation can be increased by 50% if the food donation was made by a partnership that is a recognized farming business (i.e. a farm registered with the Ministère de l'Agriculture, des Pêcheries et de l'Alimentation). The food must have been produced by the partnership.

The eligible amount of certain food donations (milk, oil, flour, sugar, deep frozen vegetables, pasta, prepared meals, baby food and infant formula) can also be increased by 50% if the food donation was made by a partnership carrying on a food processing business and the member receiving the tax benefit is an individual.

The food donation must have been made to a registered charity that is Food Banks of Québec, a Moisson member or an associated member.

Restriction applicable to a gift of a non-qualifying security

For the gift of a non-qualifying security on behalf of a partnership, partners can claim a tax benefit for their taxation year in which the partnership's fiscal period in which the security in question ceased to be a non-qualifying security or was sold by the donee within five years after the gift was made. The donee can only issue an official receipt for the gift after one of these events has occurred. If the partnership cannot take into account the amount of the gift at the time it files its information return because it has not received the receipt at that time, the partners do not lose their rights to their share of the eligible amount of the gift, provided the security ceased to be a non-qualifying security or was sold by the donee within five years after the gift was made.

However, for non-qualifying securities that the donee sells before the above-mentioned five-year period expires, the partners can claim the tax credit only if the donee did not receive another non-qualifying security as consideration for the sale of the securities.

Restriction applicable to a gift of an option to acquire property

If a partnership grants a qualified donee an option to acquire one of its properties, its members may be able to claim a tax benefit, but only once the donee has acquired the property in question or has transferred the option.

If the donee acquires the property, the amount that gives entitlement to the tax credit is equal to the FMV of the property at that time minus the total of the amounts paid by the donee to obtain the option and to acquire the property, provided the result of this calculation is at least equal to 20% of the FMV of the property at that time, in most cases.

If the donee transfers the option, the amount that gives entitlement to the tax credit for charitable donations and other donations is equal to the lesser of the following amounts, from which the amount paid by the donee to obtain the option must then be subtracted:

• the FMV of any consideration (other than a non-qualified security) received by the donee for the transfer of the option;
• the FMV of the property at the time the option is transferred.

Information about a large cultural donation and cultural patronage

If a monetary donation was made on behalf of the partnership, and the donation was made in one or more instalments during the fiscal period, a member of the partnership who is an individual (other than a trust) may be able to claim a tax credit for this donation, for the taxation year in which the fiscal period ended. The donation qualifies for an additional tax credit of 25% if it is a single large cultural donation and for an additional tax credit of 30% if it is a cultural patronage donation made before March 26, 2025. The amount of such a donation must be paid in its entirety in the fiscal period. Note that cultural patronage made by a partnership may be paid over more than one of the partnership's fiscal periods if the donation was made pursuant to a pledge submitted to the Minister of Culture and Communications for registration before March 26, 2025.

The donation must have been made to one of the following cultural donees:

• a registered charity operating in Québec in the arts or culture sector;
• a registered cultural or communications organization;
• a registered museum, a museum established under the National Museums Act (Musée d'art contemporain de Montréal, Musée de la civilisation or Musée national des beaux-arts du Québec) or a museum located in Québec that is established under the Museums Act (see Table 1).

Enter the eligible amount of the large cultural donation or of the cultural patronage on line 73 or on line 74, if the donation was made to a registered museum, a museum established under the National Museums Act or a museum located in Québec that is established under the Museums Act.

You must also inform each member of the partnership who is an individual of the amount corresponding to their share of the eligible amount of the donation if that share is:

• at least $5,000 (but not exceeding $25,000), in the case of a large cultural donation;
• at least $250,000, in the case of cultural patronage.

Other gifts

The table below shows the other gifts for which the members of a partnership can claim a tax benefit.

References: 710, 714, 714.1, 716.0.1.1, 752.0.10.1, 752.0.10.11.1, 752.0.10.11.2, 752.0.10.15, 752.0.10.15.1

5.4. Additional information and certification

In Part 4 of the return, enter the information regarding the following persons and have them sign:

• the designated partner;
• the contact person;
• the partner authorized to sign; and
• the mandatary or the representative holding an interest on behalf of investors.

If a person holds more than one of these roles, they must enter their information and signature, if applicable, in all relevant places.

If the partner, representative or mandatary is a corporation, the corporation's president, vice-president, secretary or treasurer (or any other person duly authorized by the corporation's board of directors) must sign the form.

Designated partner

A designated partner is a partner who is authorized to serve a notice of objection respecting the determination (or redetermination) of the partnership's income (or loss) for the fiscal period. The designated partner must complete section 4.1.

Furthermore, as it may be difficult to obtain each member's waiver, the designated partner can, on behalf of all members, waive the three-year time period for making a determination.

Contact person

In section 4.2, enter information about the person to contact to obtain additional information for the purposes of an audit or for processing the return.

Partner authorized to sign

The partner who files the return on behalf of all the partners must complete section 4.3.

Mandatary or representative holding an interest on behalf of investors

If the return is filed by a mandatary or representative, the mandatary or representative must complete section 4.4.

References: 1007.1–1007.5; TAA 58, 93.1.1.1; 1086R78, 1086R79

6.1. Schedule A – Partners' Interests and At-Risk Amounts

Complete Schedule A to provide information about the adjustments to the adjusted cost base (ACB) of the interest held by each member of a partnership during the fiscal period and, if applicable, the adjustments to the at-risk amount of limited partners.

You must enter the information requested for each person that was a member of the partnership during the fiscal period, including persons who became members and persons who disposed of their interest (in whole or in part).

Line 10a – Number of partners at the end of the fiscal period

Enter the number of partners who hold an interest in the partnership at the end of the fiscal period.

Line 11 – Boxes A to R

Box A – Partner's social insurance number or identification number

Enter the partner's social insurance number (in the case of an individual) or identification number (in all other cases). Also enter this number on the partner's RL-15 slip.

Box A.1 – Trust account number

If the partner is a trust, enter its trust account number from federal form T3RET, Trust Income Tax and Information Return. 

Also enter this number on the partner's RL-15 slip.

Box B – Name of partner

Enter the name of the partner (based on the type of taxpayer), as follows:

• the last name followed by the first name in the case of an individual (other than a trust);
• the name of the corporation;
• the name of the partnership;
• the name of the trust (in the case of a succession, write “Succession of” before the name of the deceased person, for example, “Succession of Jacques Lévesque”).

Also enter this information on the partner's RL-15 slip.

Box C – Address

Enter the partner's city and country of residence. In the case of a trust, its place of residence is generally that of the trustee, the liquidator of the succession or the person who administers the succession, as applicable.

For the country code, see Province, territory and country codes.

You must enter the full address on the partner's RL-15 slip.

Box H – Share in the net income (or loss) of the fiscal period

Enter the partner's share of the amount entered on line 95 or line 100 of Schedule F, depending on whether the partner is a general partner or a specified member (limited partner or silent partner).

Box I – Cost of units acquired during the fiscal period

Enter the total cost of the units acquired by the partner during the fiscal period.

Box J – Share of the net income (or net loss) of the previous fiscal period

Enter the partner's share of the amount that would have been entered on line 95 or line 100 of Schedule F, depending on whether the partner is a general partner or a specified member (limited partner or silent partner), had you completed this schedule for the previous fiscal period.

Box K – Capital contributions during the fiscal period

Enter the total amount of capital the partner contributed to the partnership during the fiscal period.

Only take into account the capital contributions that the partnership has already received or is entitled to receive.

Box L – Drawings in the fiscal period

Enter the total amount of payments made to the partner and the amount corresponding to the value of the advantages the partner received during the fiscal period. This includes:

• capital repayments;
• salaries and wages;
• cost of goods intended for sale that were used for the partner's personal consumption;
• personal expenses paid by the partnership.

Box M – Other adjustments during the fiscal period

Enter the amount of any adjustment that is not entered in one of the previous boxes.

If the partnership ceased to exist at some time during the fiscal period and the partner can claim a deduction for financing expenses that the partnership could have claimed had it continued to exist, enter the total of the amounts that the partner can claim as financing expenses. Enter a minus sign (–) before the total, as it reduces the ACB of the partner's interest (see Financing expenses).

Partner that ceased to be a member of the partnership

If a partner ceased to be a member of the partnership during the fiscal period, enter the share of income (or of the loss) that the partnership is allocating to this partner for the fiscal period. This amount is added to the ACB of the partner's interest.

Reference: 602.1

Box P – Share of the net income of the fiscal period

If the amount on line 100 of Schedule F constitutes net income, enter the partner's share of this income.

Box Q – Share in certain reductions of resource expenses for the fiscal period

Enter the partner's share of each amount covered by subparagraph (viii) of paragraph (i) of section 255 of the Taxation Act which must be subtracted from the cumulative Canadian exploration expenses, Canadian development expenses or oil and gas property expenses that the partnership allocates to the member for the fiscal period.

Box R – Amounts owing or benefits receivable

Enter the total amounts owing to the partnership (or to a person or partnership not dealing at arm's length with the partnership) by the partner (or a person or partnership not dealing at arm's length with the partner).

Also enter in this box the amount corresponding to the value of the benefits that the partner (or a person not dealing at arm's length with the partner) received or is entitled to receive, whether by way of a reimbursement, compensation, revenue guarantee, loan or in any other way, for the purpose of eliminating or reducing the impact of a loss that the partner may sustain because the partner holds or is disposing of an interest in the partnership.

Note that exceptions apply. For more information, see At-risk amount.

6.2. Schedule B – Capital Cost Allowance (CCA)

Schedule B is to be completed by a partnership that, in the calculation of its business or property income, deducts a portion of the capital cost of certain depreciable property as CCA.

If the partnership acquired designated immediate expensing property (DIEP), form CO-130.AD, Déduction à l'égard de biens relatifs à la passation en charges immédiate, must be completed before Schedule B of the partnership information return.

Column A – Property class number

Enter the class number of each depreciable property of the partnership, using a separate line for each class. Refer to the CCA table for the previous fiscal period or consult Schedule B to the Regulation respecting the Taxation Act (RTA) to find out what classes of property exist and the CCA rate applicable to each. The CCA rates applicable to the most common classes are also provided in the instructions for column I.

As a rule, property of a same class is grouped together. Consequently, a given class number should appear only once in column A. However, in certain circumstances, property of a same class must be separated into two or more groups. In this case, the class number must be entered in column A once for each group.

Property of the same class is separated in the following circumstances:

• The RTA requires that certain property of the same class be included in a separate class.
• Under the RTA, certain property of the same class can be included in a separate class if the partnership elects to separate it.

The table below shows certain classes for which certain property must be included or can be included in a separate class.

Under certain conditions, the following property must be included in a separate class from other property of the same class:

• rental property the capital cost of which is $50,000 or more;
• specified leasing property;
• leasing property.

Partnerships carrying on another business or earning property income

If certain property of the same class was acquired to earn income from a business, and other property was acquired to earn income from another business or property income, a separate class must be created for each business in respect of the property.

References: 130R156 –130R203

Column B – Undepreciated capital cost (UCC) at the beginning of the period

Enter, for each class, the UCC of the property at the end of the previous fiscal period. This amount is shown in column K of the copy of Schedule B filed for the previous period. If it is negative, enter a minus sign (−) before the amount.

If this is the partnership's first fiscal period, leave column B blank.

If the disposition of the property involved an affiliated person and resulted in a loss, add the excess amount referred to under “Depreciable property” (see Lines 60 and 62 – Capital gains [or losses] on the disposition of capital property).

Column C – Capital cost of acquisitions made in the period

If the partnership acquired depreciable property during the fiscal period and that property was considered available for use, enter the capital cost of the property on the line for the appropriate class.

The capital cost of property is generally the full cost the partnership incurred to acquire the property and includes:

• legal, accounting, engineering and other fees incurred to acquire the property;
• site preparation, delivery, installation, testing and other costs incurred to put the property into use; and
• in the case of property the partnership manufactures for its own use, material, labour and overhead costs reasonably attributable to the property, but not any profit which might have been earned had the asset been sold.

In calculating the capital cost of property, you must deduct the amount of any assistance received, input tax credits (ITCs) claimed and input tax refunds (ITRs) claimed during the taxation year in respect of the property. You must add the amount of any assistance, ITCs and ITRs already deducted that the partnership has repaid (or is deemed to have repaid) during the taxation year. Amounts that were received or repaid after the property to which they relate was disposed of must be entered in column D instead.

Note that other rules reduce or increase the capital cost of certain property. For example, the capital cost of property in class 10.1 or class 54 is limited. See Passenger vehicles (class 10.1) and Zero-emission vehicles (class 54 and 55).

Available-for-use rule

Most depreciable property is subject to the available-for-use rule. Under this rule, no CCA can be claimed for new property until it has been first used to earn income.

Consequently, when depreciable property is used to earn income in the fiscal period in which it was acquired (which is usually the case), its capital cost must be entered in column C of the CCA table for that fiscal period.

If the property is not used to earn income in the fiscal period in which it was acquired, its capital cost must be entered in column C of the CCA table for the fiscal period in which it is considered to be available for use.

Under the Taxation Act, a certain number of dates may be considered to be the date on which the property acquired by a partnership becomes available for use. For further information, contact us.

References: 21.35, 21.35.1. 93.6, 93.7, 93.8, 101, 252 (1st par.)

Column C.1 – Capital cost of property that qualifies for accelerated CCA and was acquired in the period

A partnership can claim accelerated CCA if it acquired:

• class 54, class 55 or class 56 property;
• property in another class that is accelerated investment incentive property (AIIP).

The following rules apply to such property for the fiscal period in which the property is considered available for use (usually the fiscal period in which the property is acquired):

• The half-year rule does not apply.
• The UCC used to calculate the CCA is increased so that an amount of enhanced CCA may be granted.

With these rules, the total CCA that can be claimed for a property over its lifetime is deducted more quickly than before the implementation of the accelerated CCA rules.

Column C.1 is used to enter the capital cost of property for which accelerated CCA can be claimed. Therefore, if the CCA table includes:

• property in class 54, class 55 or class 56, carry the amount from column C for each class to column C.1 for each class;
• property included in any other class whose capital cost is included in column C and that is AIIP (including DIEP), carry the capital cost to column C.1 for each class concerned.

If, for a given class, you have no amount to enter in column C.1, enter “0.” Also enter 0 in columns F.1, F.2 and F.3. Then complete columns D, E and F and G. In all other cases, subtract the amount in column G in Part 3 of form CO-130.AD from the part of the amount in column C related to the acquisition of AIIP (including DIEP that qualifies as AIIP) and enter the amount in column C.1 for each property class.

As the CCA rate for property in class 12 is 100% and the half-year rule does not apply, there is no accelerated CCA for this class. Enter 0 in columns C.1, F.1, F.2, F.2.1 and F.3. Then complete columns D, E, F and, if applicable, column G. Continue to column H.

An enhanced CCA can also be applied to property in class 13, class 14 or class 15 (property to which the straight-line depreciation method applies) for the first fiscal period. However, a different type of enhancement is used. Enter 0 in columns C.1, F.1, F.2, F.2.1 and F.3. Then complete columns D, E, F and G. If the partnership acquired property in class 13 or class 14, see Column J – CCA. If the partnership acquired property in class 15, contact us.

Column D – Adjustments

For each class, enter the total of the adjustments made in calculating the UCC.

To calculate the total, you must:

• add the total of any assistance that meets the following requirements:
  • the assistance is related to depreciable property in the class,
  • the assistance was repaid by the partnership, under an obligation to repay the assistance, after the partnership disposed of the property,
  • the assistance would have been included in the calculation of the property's capital cost, under section 101 of the Taxation Act, had the repayment been made before the property's disposition;
• subtract the total of any assistance that meets the following requirements:
  • the assistance is related to depreciable property of the class or was paid to help acquire such property,
  • the partnership received or was entitled to receive the assistance before claiming the CCA and after disposing of the property,
  • the assistance would have been included, under section 101 of the Act, in the assistance that the partnership received or was entitled to receive for the property had the assistance been received before the property's disposition.

Column E – Proceeds of dispositions made in the period

For each depreciable property disposed of during the fiscal period, determine the lesser of the following amounts:

• the proceeds of disposition of the property, minus any expenses incurred for the disposition;
• the capital cost of the property.

Add the amounts obtained for each depreciable property of a same class and enter the total amount in column E.

Column F – UCC after acquisitions, dispositions and immediate expensing

For each class, add the amounts in columns B, C and D, then subtract from the result the amount in column E and column G in Part 3 of form CO-130.AD.

If the amount in column F is positive, it is used to calculate the CCA for each class of property entered in column A, unless:

• an adjustment must be made in column F.3 or column G (in which case the amount in column H is used to calculate the CCA); or
• that class no longer contains any property and, as a result, the amount in column F is deductible as a terminal loss (enter “0” in column H).

Any negative amount entered in column F must be included as CCA recapture in the calculation of partnership income. In this case, enter 0 in column H.

Column F.1 – Proceeds of dispositions that may reduce the capital cost of property that qualifies for accelerated CCA and was acquired in the period

As a rule, to calculate the enhanced CCA, you must subtract the following from the capital cost of property that qualifies for accelerated CCA (column C.1):

• for property in class 54, class 55 or class 56, the proceeds from the disposition of the property during the fiscal period;
• for property in other classes that is AIIP, the portion of the proceeds from the disposition of all such property during the fiscal period that exceeds the capital cost of property in the class that is not AIIP or DIEP.

Column F.1 is used to determine the amount you have to subtract from the capital cost of property that qualifies for accelerated CCA. To calculate this amount, if no amount is entered in column D of a given class, subtract the amount in column C.1 and the amount in column G in Part 3 of form CO-130.AD from column C, then subtract the result from the amount in column E.

If an amount is entered in column D for a given class, subtract the amount in column C.1 and the amount in column G in Part 3 of form CO-130.AD from the adjusted amount in column C, then subtract the result from the adjusted amount in column E.

If you entered 0 in column C.1, also enter 0 in column F.1.

If the amount in column F.1 is negative, enter 0.

Adjusted amount in column E (if an amount is shown in column D)

You must add the total of the adjustments included in column D that reduce the UCC to the amount in column E. More specifically, these adjustments are any assistance that meets the following requirements:

• The assistance is related to property in the class or was paid to help acquire such property.
• The partnership received or was entitled to receive the assistance before claiming the CCA but after disposing of the property.
• The assistance would have been included, under section 101 of the Taxation Act, in the assistance the partnership received or was entitled to receive for the property had the assistance been received before the property's disposition.

Adjusted amount in column C (if an amount is shown in column D)

You must add the total of the adjustments included in column D that are added to the UCC to the amount in column C. More specifically, these adjustments are any assistance that meets the following requirements:

• The assistance is related to property in the class.
• The assistance was repaid by the partnership, under an obligation to repay the assistance, after the partnership disposed of the property.
• The assistance would have been included in the calculation of the property's capital cost under section 101 of the Act had the repayment been made before the property's disposition.

Column F.2 – Net capital cost of property that qualifies for accelerated CCA

The amount in column F.2 is the portion of the capital cost of property that qualifies for accelerated CCA that must be increased for the purpose of calculating the enhanced CCA. To calculate this portion, subtract the amount in column F.1 from the amount in column C.1.

If the result is negative, enter 0 and go to column G.

Column F.2.1 – Multiplier

The tables below show the gross-up rate (hereinafter “multiplier”) applicable to each class for a fiscal period ending in 2025. Use them to determine the portion of the capital cost of property that qualifies for accelerated CCA that will be added to the UCC to create a “hypothetical” UCC for the purpose of calculating CCA.

Column F.3 – UCC adjustment for property that qualifies for accelerated CCA and was acquired in the period

The amount in column F.3 is the portion of the capital cost of property that qualifies for accelerated CCA and was acquired in the fiscal period to be added to the UCC (column F) to create a “hypothetical” UCC (column H) for the purpose of calculating CCA. To determine the amount to add to the UCC, multiply the amount in column F.2 by the multiplier in column F.2.1.

Column G – UCC adjustment for property acquired in the period (other than property that qualifies for accelerated CCA in the period)

Column G applies to property subject to the half-year rule, that is, property that meets the following three requirements:

• The property is considered available for use during the fiscal period (the capital cost of the property is in column C).
• The property does not qualify for accelerated CCA (the capital cost of the property is in column C, not in column C.1).
• The property is not excluded property under the half-year rule (see Exceptions to the half-year rule).

Under the half-year rule, the capital cost of a given property is reduced by half for the fiscal period in which the property is considered available for use. If property was disposed of within the same fiscal period, the proceeds of disposition must be subtracted from the property's capital cost.

For a given class of property, you must do the following calculation:

1. For property in class 12, take into account only the portion of the amount in column C related to property subject to the half-year rule (see Exceptions to the half-year rule). If you entered an amount in column D, use the adjusted amount in column C (see Adjusted amount in column C).
2. If you entered an amount in column D, use the adjusted amount in column E (see Adjusted amount in column E).

Exceptions to the half-year rule

The half-year rule does not apply to:

• property in class 12 (except for dies, jugs, patterns, moulds or lasts);
• property in classes 13, 14, 15 and 23;
• property that the partnership elected to include in a separate class.

Under certain conditions, this rule does not apply to property acquired as a result of certain transfers made to a person not dealing at arm's length with the partnership or acquired in the course of certain reorganizations.

References: 130R119, 130R120(a), 130R122–130R124

Column H – UCC adjusted for the calculation of CCA

Column H is used to determine the “hypothetical” UCC for calculating CCA. The hypothetical UCC is the actual UCC (column F) plus the adjustment related to property that qualifies for accelerated CCA (column F.3) minus the adjustment related to property subject to the half-year rule (column G).

Column I – CCA rates by class of property

The table below shows the CCA rate for each class of property subject to the declining-balance method of depreciation. The instructions for column J provide details for classes followed by an asterisk (*).

Classes of property subject to the straight-line depreciation method

Property in classes 13, 14, 15 and 29 are subject to the straight-line depreciation method. If the partnership acquired property in classes 13, 14 and 29, see Column J – CCA.

If the partnership acquired class 15 property, contact us.

Column J – CCA

For each class of property listed in column A, enter the amount that the partnership is claiming as CCA, without exceeding the amount set by the Regulation respecting the Taxation Act.

As a rule, the CCA is calculated using the declining-balance method as follows:

• Multiply the UCC (column H) for a given class by the CCA rate for that class (column I).
• Add the amount in column G in Part 3 of form CO-130.AD to the above result.

In some cases, however, the straight-line depreciation method must be used.

The partnership cannot claim an amount as CCA for a particular class if the partnership no longer owns property in that class at the end of the fiscal period (with the exception of a class 10.1 passenger vehicle).

If the fiscal period covers fewer than 12 months, the CCA provided for above must be calculated on the basis of the ratio between the number of days in the fiscal period and 365.

References: 130(a); 130R1, 130R3, 130R22, 130R23, 130R127

Limit on CCA – Rental property and computer software tax shelter property

Regardless of whether rental property (immovables with or without leasing property) generates property income (line 46) or business income (line 40), the partnership cannot deduct any portion of the CCA that creates or increases a rental loss. In other words, the amount of CCA deducted must not exceed the amount of net rental income before CCA. If the partnership owns more than one immovable, this rule applies to all of the immovables. You must therefore take the rule into account in calculating the total CCA, before calculating the net rental income (or loss) for all the property.

If an amount is claimed as CCA for computer software tax shelter property (tax shelter software used in carrying on a business) the partnership cannot deduct any portion of the CCA for the computer software tax shelter property that creates or increases a business loss.

References: 130R85 ff., 130R117, 130R118

Buildings (class 1)

Non-residential buildings

As a rule, non-residential buildings are included in class 1 and, as such, are eligible for a CCA rate of 4%.

However, a non-residential building acquired after March 18, 2007, and placed in a separate class may be eligible for an additional allowance of 6% if at least 90% of the floor space of the building is used for the manufacturing or processing in Canada of goods intended for sale or lease. If the floor space requirement is not met, the additional allowance is 2%.

The additional allowances of 6% and 2% also apply to buildings that were under construction on March 19, 2007, provided that they had not been wholly acquired on that date, nor used or acquired for use before that date.

If the partnership does not place each of these buildings in a separate class 1, it must apply a CCA rate of 4%.

New purpose-built rental housing

New purpose-built rental housing is a building or part of a building located in Canada that is included in a separate class 1. It can qualify for accelerated CCA with a CCA rate of 10% instead of 4% if construction began after April 15, 2024, but before January 1, 2031, and it is considered available for use before January 1, 2036.

However, it must meet the following conditions:

• It has at least four rental units (residential units that are not made available to travelers or vacationers) that are private apartments (residential units with a private kitchen, bathroom and living room), or at least ten rental units.
• At least 90% of the residential units are rented long term.

The conversion of an existing non-residential building (such as an office building) into a residential complex may qualify for accelerated CCA if the above conditions are met.

Renovations to an existing residential complex do not qualify for accelerated CCA. However, the cost of an addition to an existing structure may qualify if the above conditions are met.

Office equipment (class 8)

Certain class 8 property, such as photocopiers, fax machines and telephone equipment whose cost exceeds $400, can be included in a separate class if an election is made in respect of the property.

The election to create a separate class does not change the CCA rate (for example, the CCA rate of class 8 property is still 20%). However, it does provide the following advantages:

• The half-year rule (see Column G – Adjustment of the UCC) does not apply to this property for the fiscal period during which the partnership acquired the property, even if the property does not qualify for accelerated CCA.
• If, at the end of a given fiscal period, the partnership no longer owns any property in a separate class (whether the class was created for each property or for two or more properties), it can claim a terminal loss equal to the UCC of the property in that class.

Tools of less than $500 (class 8 or 12)

Tools, kitchen utensils and medical or dental instruments that cost $500 or more must be included in class 8, and, as such, they are eligible for a CCA rate of 20%.

However, any such property that costs less than $500 can be included in class 12, in which case it is eligible for a CCA rate of 100%. This measure does not apply to electronic communication devices or electronic data processing equipment.

Work of art (class 8.1)

Property that is a drawing, a print, an etching, a sculpture, a painting or other similar work of art of which the artist was a Canadian is included in this class.

Passenger vehicles (class 10.1)

Passenger vehicles (motor vehicles used to carry and seat a maximum of one driver and eight passengers) must be included in class 10.1, rather than class 10, if their capital cost exceeds $37,000 (when acquired before January 1, 2025) or $38,000 (when acquired after December 31, 2024). Each vehicle of this type must be included in a separate class.

When a passenger vehicle is disposed of, there is no CCA recapture or terminal loss. The partnership can, however, deduct one half of the amount of CCA it would have been entitled to deduct had it not disposed of the vehicle in the year.

Under a special rule that applies to the sale of a passenger vehicle that is DIEP and is subject to the capital cost limit, the proceeds of disposition must be adjusted based on the ratio between the $38,000 limit and the actual cost of the vehicle.

Leasehold improvements (class 13)

The capital cost of leasehold improvements incurred in a fiscal period for leased property is considered a unit of capital cost. The capital cost incurred in a subsequent fiscal period for the same property represents another unit of capital cost. Each unit is included in the same class, but requires a separate CCA calculation.

For each unit of capital cost that is not AIIP, the maximum CCA for a year corresponds to one of the following amounts, whichever is less:

• 1/5 of the unit of capital cost;
• the unit of capital cost divided by the number of 12-month periods (not exceeding 40 periods) included between the start of the fiscal period in which the capital cost was incurred and the day on which the lease is to end (or, if the lessee can renew the lease, the day on which the first renewal must end).

For the fiscal period in which the unit is considered available for use, the maximum CCA must be reduced by half (under a rule similar to the half-year rule).

For each unit of capital cost that is AIIP, the CCA for a year is calculated the same is if the unit were not AIIP, except that the rule similar to the half-year rule remains suspended for capital costs incurred before 2034.

In all cases, the amount of CCA for all units of capital cost cannot exceed the UCC for class 13 property.

Patents, concessions or licences for a limited period (class 14)

If a partnership acquires, after 2024, class 14 property that is AIIP and is considered available for use in the fiscal period, the partnership can claim 50% of the CCA it could otherwise claim for the fiscal period for property that is not AIIP (hereinafter “regular CCA”). If such AIIP was acquired before January 1, 2025, you must gross-up the CCA by 25%.

Regular CCA

Regular CCA is the amount obtained by dividing the capital cost of the property by its expected useful life.

Incorporeal capital property (class 14.1)

This class includes:

• incorporeal capital property held by the partnership on January 1, 2017; and
• incorporeal capital property acquired on or after January 1, 2017.

The CCA rate for property in this class is 5%.

Property that is qualified intellectual property must be included in a separate class 14.1. The multiplier (column F.2.1) to be used to calculate the enhanced CCA is greater for qualified intellectual property. Also, the partnership can claim an additional CCA for such property. For more information, see Additional CCA of 30% for certain property in classes 14, 14.1, 43.1, 43.2, 44, 50 and 53.

Additional CCA can be claimed with respect to the UCC of the property in this class on January 1, 2017.

Additional CCA with respect to the UCC of property on January 1, 2017

For a fiscal period ending before January 1, 2027, a partnership may be entitled to additional CCA corresponding to 2% of the UCC in class 14.1 at the beginning of January 1, 2017, minus:

• the total CCA (including additional CCA) with respect to class 14.1 for the previous years; and
• three times any amounts added to the UCC of class 14.1 following the disposition of incorporeal capital property that the partnership held on January 1, 2017.

If the total CCA (including additional CCA) for the fiscal period is less than $500, the additional CCA can be increased so that the partnership can claim a total CCA of $500 with respect to class 14.1. However, the additional allowance cannot exceed the UCC of the property in class 14.1 on January 1, 2017, minus the additional allowances in previous years.

Enter in column J the total CCA (including additional CCA) that the partnership is claiming with respect to the property in class 14.1.

Manufacturing and processing equipment and machinery (class 43, 29 or 53)

As a rule, manufacturing and processing equipment and machinery are included in class 43 property and are eligible for a CCA rate of 30%.

However, any such property acquired before 2016 can be included in class 29, in which case it is eligible for a CCA rate of 50% using the straight-line depreciation method.

Property acquired after 2015 but before 2026 can be included in class 53, in which case it is eligible for a CCA rate of 50% using the declining-balance method.

A partnership that acquires property for use in manufacturing and processing activities in Québec can, under certain conditions, claim an additional CCA of 30% if the property was acquired after December 3, 2018, but before January 1, 2024.

Property for which the additional CCA of 30% can be claimed must be grouped in a separate class 53. The multiplier (column F.2.1) used to calculate the enhanced CCA is greater for such property.

For more information concerning the additional CCA, see Additional CCA of 30% for certain property in classes 14, 14.1, 43.1, 43.2, 44, 50 and 53.

References: 130R45–130R48

Clean energy generation equipment and energy conservation equipment (classes 43.1 and 43.2)

Clean energy generation equipment and energy conservation equipment acquired after March 3, 2010, is included in class 43.1 or, under certain conditions, in class 43.2. This equipment includes the following:

• pumped hydroelectric storage and emission equipment acquired after April 18, 2021;
• active solar heating equipment and ground-source heat pump systems (equipment used to heat the water of a pool is not eligible if it was acquired before April 19, 2021);
• small-scale hydroelectric installations;
• wind energy conversion systems;
• electric vehicle charging equipment acquired after March 21, 2016;
• geothermal electrical generation or heat production equipment (the heat production equipment is eligible if it is acquired after March 21, 2017);
• equipment used to dispense hydrogen for use in hydrogen-powered vehicles that is acquired after April 18, 2021;
• air-source heat pumps used mainly for space or water heating acquired after April 6, 2022.

Class 43.1 property acquired after December 3, 2018, but before January 1, 2024, for which an additional CCA of 30% can be claimed (must be grouped in a separate class 43.1 (see Additional CCA of 30% for certain property in classes 14, 14.1, 43.1, 43.2, 44, 50 and 53).

Similarly, class 43.2 property acquired after December 3, 2018, but before January 1, 2024, for which an additional CCA of 30% can be claimed must be grouped in a separate class 43.2.

Patent or right to use patented information (class 44)

Class 44 property that is qualified intellectual property must be included in a separate class 44. The multiplier (column F.2.1) used to calculate the enhanced CCA may be greater for qualified intellectual property.

The partnership can claim an additional CCA for qualified intellectual property (see Additional CCA of 30% for certain property in classes 14, 14.1, 43.1, 43.2, 44, 50 and 53).

Computer equipment (class 50)

General-purpose electronic data processing equipment (computer) and systems software for that equipment, including ancillary data processing equipment, is included in class 50 and is eligible for a CCA rate of 55%.

A partnership that acquires property constituting computer equipment can, under certain conditions, claim an additional deduction of 30% if the property is acquired after December 3, 2018, but before January 1, 2024.

Property in this class for which the additional CCA of 30% can be claimed must be grouped in a separate class 50.

For more information concerning the additional CCA, see Additional CCA of 30% for certain property in classes 14, 14.1, 43.1, 43.2, 44, 50 and 53.

Zero-emission vehicles (classes 54 and 55)

Zero-emission vehicles that are acquired and become available for use after March 18, 2019, but before 2028, that would have been included in class 10 or class 10.1 had they been acquired before March 19, 2019, are class 54 property for which CCA at a rate of 30% can be claimed.

The capital cost of a vehicle in class 54 must not exceed $61,000. However, a special rule applies on the sale of a vehicle subject to this limit. Under this rule, the proceeds of disposition are adjusted based on the ratio between the $61,000 limit and the actual cost of the vehicle, which is subject to certain adjustments.

Zero-emission vehicles acquired and available for use after March 18, 2019, but before 2028, that would have been included in class 16 or class 18 had they been acquired before March 19, 2019, are class 55 property for which CCA at the rate of 40% can be claimed.

A partnership can choose to include a zero-emission vehicle in class 10, 10.1, 16 or 18, and forgo having the property treated as class 54 or 55 property.

Zero-emission automotive equipment (class 56)

Class 56 includes automotive equipment, except motor vehicles, that is fully electric or fully powered by hydrogen and is acquired and becomes available for use after March 1, 2020, and before 2028.

The cost of additions and modifications made by the partnership to convert automotive equipment (except motor vehicles) to run on 100% electric or hydrogen power may, under certain conditions, be included in class 56.

Class 56 property must meet the same conditions as AIIP, even if it is not considered as accelerated investment incentive property.

The CCA rate for class 56 is 30%.

A partnership can elect to include a zero-emission vehicle or zero-emission automotive equipment in another class if the vehicle or equipment meets the requirements of the other class and in so doing renounce any tax treatment as class 56 property for the vehicle or equipment.

Carbon capture, utilization and storage (classes 57, 58, 59 and 60)

Carbon capture, utilization and storage (CCUS) are a suite of technologies that capture carbon dioxide (CO₂) emissions in the air or from the burning of fuel and industrial processes, either to store the CO₂ (usually deep underground) or for use in industry. A CCUS project can give entitlement to the federal investment tax credit for carbon capture, utilization and storage.

The property used in a CCUS project falls under classes 57 to 60, for which CCA can be claimed at the following rates:

• 8%, if included in class 57;
• 20%, if included in class 58;
• 100%, if included in class 59;
• 30%, if included in class 60.

Column K – UCC at the end of the period

For each class, add the amount in column F to the amount in column G in Part 3 of form CO-130.AD, then subtract the amount in column J from the result.

Enter a minus sign (–) before the amount in column K if it is negative. CCA for a negative amount can be recaptured in the following fiscal period.

6.3. Schedule D – Member Corporations' Shares of Paid-Up Capital

Schedule D is to be completed by a partnership whose members include one or more corporations.

This schedule must contain the information that a member corporation has to use to calculate its paid-up capital in order to determine its eligibility for certain financial assistance measures (for example, the small business deduction) and calculate the amount of assistance to which it is entitled.

In Part 1, you must enter the amount of the partnership's debts.

In Part 2, you must enter the value of the partnership's qualified property for which a reduction of the paid-up capital can be claimed by a member corporation.

Enter on line 359 any amount receivable from another corporation (other than a financial institution):

• if, at the end of the fiscal period, the amount has been outstanding for more than six months; or
• if the payment of the amount is secured, in whole or in part, by property belonging to the other corporation (do not take into account a debt that has been outstanding for six months or less and that is either an account receivable for the sale of property or the provision of a service, or a tax receivable respecting the disposition of property or the provision of a service, in a situation where the sale or the provision gives rise to an account receivable or an account that would be an account receivable if the consideration for the disposition or the provision were outstanding).

In Part 3, you must enter the items that make up the partnership's assets. Use Part 2 to calculate the reduction of paid-up capital.

In Part 4, you must enter in column B each member corporation's share (calculated on the basis of the percentage interest) of the partnership's income (or loss), as well as each member corporation's share of the partnership's debts, qualified property and total assets.

References: 1136(3), 1138

6.4. Schedule E – Summary of Certain Information to Enter on RL-15 Slips

6.4.1. Resource expenses incurred by operating partnerships

Complete Part 1 of Schedule E if the partnership directly incurred resource expenses as an operating partnership or as a member of an operating partnership. Enter in boxes 28 through 35 the aggregate of the amounts entered in boxes 28 through 35 of all the RL-15 slips that the partnership filed.

An individual who is a member of an operating partnership (or a member of a partnership that is a member of an operating partnership) can no longer claim the additional deduction for certain Québec exploration expenses or the additional deduction for certain Québec surface mining exploration expenses for exploration expenses that the operating partnership incurred in Québec after March 25, 2025. As a result, do not enter such expenses in boxes 32 and 33.

For resource expenses that the partnership is deemed to have incurred further to an investment in flow-through shares, complete Part 4 of Schedule E.

6.4.2. Tax credit

Part 2 of Schedule E must be completed by an operating partnership that incurred eligible expenses that may entitle certain of its members to one of the tax credits in the table below.

You must first complete the applicable tax credit application form. Complete only the parts of the form concerning the information you must enter in Part 2 of Schedule E. Enclose the form with the partnership information return.

If the members of a partnership are entitled to more than one tax credit, complete a separate copy of Schedule E for each tax credit.

You may have to complete several copies of a tax credit application form (for example, you may have to complete several copies of form CO-1029.8.36.IN). If this is the case, you must also complete a separate copy of Schedule E for each copy of the tax credit form in question.

Tax credit relating to resources

If a partnership incurs eligible expenses in a fiscal period, has an establishment in Québec and carries on a business in Québec, a member that is a qualified corporation can claim the tax credit relating to resources for its share of the partnership's eligible expenses for the taxation year in which the partnership's fiscal period ends.

Eligible expenses for a fiscal period are the following expenses the partnership incurred in the period:

• certain Canadian exploration expenses incurred in Québec that are related to mineral resources other than coal;
• certain expenses incurred in Québec relating to natural resources (granite, sandstone, limestone, marble and slate), where the resources are used for the production of dimension stones, cemetery monuments, building stones, paving stones, curbing or roof tiles; and
• Canadian renewable and conservation expenses that are incurred in Québec;
• certain Canadian development expenses incurred in Québec after March 25, 2025, that are related to mineral resources.

If a development corporation issued flow-through shares and renounced the eligible expenses it incurred in favour of its investors, the expenses are not eligible expenses for the purpose of the tax credit relating to resources.

Reference: 1029.8.36.167

Tax credit rates

The tables below show the rates for the tax credit relating to resources.

References: 1029.8.36.169, 1029.8.36.171

$100 million cumulative limit on eligible expenses per five-year period

For qualified partnerships whose fiscal period begins after March 25, 2025, there is a $100 million cumulative limit on eligible expenses per five-year period. Once the limit has been reached, qualified corporations that are members of the partnership can no longer receive the tax credit relating to resources.

A partnership's total eligible expenses for a fiscal period cannot exceed the cumulative limit on its eligible expenses for the fiscal period.

As a rule, the balance of the cumulative limit on a qualified partnership's eligible expenses for a given fiscal period is $100 million minus the total eligible expenses the partnership incurred in a fiscal period ending in the 48 months preceding the beginning of the given fiscal period and for which a qualified corporation that is a member of the partnership could claim the tax credit relating to resources.

However, only half the eligible expenses related to mineral resources incurred in the Far North and attributable mainly to one or more critical or strategic minerals can be included in calculating the balance of the cumulative limit on eligible expenses.

Eligible expenses incurred before March 26, 2025, must not be included in calculating the balance of the cumulative limit on eligible expenses.

Each corporation that is a member of the partnership must complete form CO-1029.8.36.EM and enclose the form with its return to claim its share of the tax credit.

Tax credit for investment

A qualified corporation that is a member of a partnership that incurred eligible expenses for the acquisition of qualified property during the fiscal period covered by the return or a previous fiscal period can claim a tax credit for investment for the taxation year in which the partnership's fiscal period ends.

The basic rate of the tax credit is 4% for eligible expenses incurred after December 31, 2019, but before January 1, 2023, to acquire qualified property for use primarily in a remote zone, in the eastern part of the Bas-Saint-Laurent region or in an intermediate zone.

These rates may be increased if a partnership's paid-up capital is less than $500 million. See Increase and temporary additional increase in the basic rate of the tax credit.

Excluded expense amount

A corporation claiming the tax credit as a member of a partnership must subtract the excluded expense amount from the eligible expenses incurred by the partnership for the acquisition of property.

The excluded expense amount is equal to the lesser of the following amounts:

• the amount of eligible expenses incurred for the property for the fiscal period;
• the amount by which the applicable exclusion threshold amount exceeds the total of the excluded expense amounts related to the property for previous fiscal periods, where applicable.

As a rule, the exclusion threshold amount related to a qualified property is $12,500. However, if the partnership acquired the property as part of a joint venture, the exclusion threshold will be calculated on the basis of the partnership's share in the joint venture.

Note that subtracting the excluded expense amount from the eligible expenses related to a qualified property of a partnership will have no effect on the calculation of a member corporation's cumulative eligible expense limit balance.

Increase and temporary additional increase in the basic rate of the tax credit

If a partnership's paid-up capital for the previous fiscal period, calculated on a consolidated basis, is $250 million or less, the rate of the tax credit is increased. Moreover, if a partnership meets this condition and more than 50% of its activities consist of metal processing, the partnership is granted a temporary additional increase in the rate of the tax credit for the eligible expenses it has incurred.

If the corporation's paid-up capital for the previous fiscal period is between $250 million and $500 million, the increased rate (including the temporary additional increase) is reduced linearly. If the paid-up capital is $500 million or more, the basic rate is not increased.

The table below shows the increased rate that applies to each region.

Cumulative limit of $75 million

Eligible expenses incurred for the acquisition of qualified property that entitle a member corporation to the tax credit at the increased rate or to a refund of a portion of the credit are subject to the cumulative limit of $75 million.

Election for the tax credit for investment

A corporation that is a member of a partnership that has acquired property considered to be qualified property for the purposes of the tax credit for investment and specified property for the purposes of the tax credit for investment and innovation can elect, for the taxation year ended in the first fiscal period during which the partnership incurred expenses for the acquisition of this property, to have the property considered qualified property rather than specified property.

However, such an election cannot be made for a taxation year if the corporation has claimed the tax credit for investment and innovation for that taxation year or a prior taxation year.

If the corporation elects to claim the tax credit for investment, you must check the appropriate box on form CO-1029.8.36.IN, Crédit d'impôt pour investissement.

Each corporation that is a member of the partnership must complete form CO-1029.8.36.IN.

Tax credit for salaries and wages (R&D)

If, in its fiscal period, a partnership carries on a business in Canada and undertakes scientific research and experimental development (R&D) work in Québec or causes such work to be undertaken in Québec on its behalf, the partnership's members can claim a tax credit for salaries and wages (R&D) for their taxation year that ends in the partnership's taxation year.

Amount of reducible expenditures

A partnership must subtract the amount of reducible expenditures from the salaries, wages or consideration it paid for R&D work.

The amount of reducible expenditures is equal to the lesser of the following amounts:

• the member's share of the applicable exclusion threshold amount;
• the member's share in the total reducible expenditures incurred by the partnership in its fiscal period.

As a rule, the amount of the exclusion threshold for a fiscal period is $50,000. It is linearly increased if the total assets of the partnership for the previous fiscal period are between $50 and $75 million. It is $225,000 if the partnership's total assets for the previous fiscal period are $75 million or more.

Rate of the tax credit

The rate of the tax credit for salaries and wages (R&D) is 14%.

Each member of the partnership must complete form RD-1029.7-V and enclose it with their return to claim their share of the tax credit.

Interposed partnerships

An interposed partnership must provide its members with the same information it obtained from another partnership of which it is a member.

Box 70 – Tax credit code

Enter the code from the table below for the tax credit for which you are entering an eligible amount in box 71.

References: 1029.8, 1029.8.36.166.44, 1029.8.36.169, 1029.8.36.171

Box 71 – Eligible amount

The eligible amount corresponds to one of the following amounts (as applicable):

• in the case of the tax credit relating to resources, the amount of the partnership's eligible expenses calculated on line 12, 12g, 19, 19g, 19n, 19u, 26, 26d, 33 or 33g of form CO-1029.8.36.EM;
• in the case of the tax credit for investment, the amount of the partnership's eligible expenses calculated on line 20 of form CO-1029.8.36.IN;
• in the case of the tax credit for salaries and wages (R&D), the amount of the partnership's qualified expenditures calculated on line 210 of form RD-1029.7-V.

The applicable limits and restrictions are taken into account in the calculation of the eligible amount of each tax credit. This amount must be reduced by any amount of assistance, benefit or advantage received with respect to the partnership's eligible expenses or qualified expenditures.

Box 72 – Region or RCM code

For purposes of the tax credit for investment, enter the code corresponding to the region or regional county municipality (RCM) in which the partnership acquired qualified property. The same code is entered on line 09 of form CO-1029.8.36.IN.

Box 73 – Expense code

For purposes of the tax credit relating to resources, enter the code corresponding to the net eligible expenses entered in box 71. The same code is entered on lines 12, 12g, 19, 19g, 19n, 19u, 26, 26d, 33 and 33g of form CO-1029.8.36.EM.

You must also complete a separate copy of Schedule E if, on form CO-1029.8.36.EM, the partnership entered more than one code for resource expenses.

Box 75 – Date the property was acquired

For purposes of the tax credit for investment, enter the date on which the property was acquired.

Box 76 – Date the property was used

For purposes of the tax credit for investment, enter the date on which the property started being used.

Assistance, benefits or advantages received

The partnership may have incurred expenses that entitle its members to a tax credit (most of these tax credits are described under Tax credit and Other tax credits).

If, during the fiscal period covered by the return, the partnership repaid an amount of assistance, a benefit or an advantage that was previously used to reduce the amount of such expenses for the purpose of calculating the tax credit (that is, expenses from a previous fiscal period were reduced by the assistance, benefit or advantage), the repayment must be added to the amount of the expenses from the fiscal period covered that give entitlement to the tax credit.

If the partnership receives assistance, a benefit or an advantage for the expenses after its members have obtained the tax credit, the members must pay a special tax for the year in which the partnership received the assistance, benefit or advantage.

Other tax credits

The partnership may have incurred expenses that entitle its members to tax credits other than those mentioned in the instructions for box 70. See Other tax credits.

6.4.3. Tax shelter

Partnership that is a tax shelter

Complete Part 3 of Schedule E if, during the fiscal period, an individual resident in Québec acquired an interest in the partnership and the interest constitutes a tax shelter. All interests with the same tax shelter identification number that were acquired during the fiscal period by individuals resident in Québec must be reported on the same schedule.

Obligation to provide information

A tax shelter promoter that accepts consideration at a particular time in a calendar year from an individual resident in Québec at that time, or acts as a mandatary with respect to such an acceptance, must file an RL-14 slip in the name of the individual (referred to as the “investor” on the slip) and the RL-14 summary. These documents must be filed by the last day of February of the following year.

If the partnership is a tax shelter and is required to file the Partnership Information Return (form TP-600-V) and RL-15 slips, it does not have to file RL-14 slips or the RL-14 summary where it files the return and the RL-15 slips by the prescribed deadline (see Filing deadline). All the information on the RL-14 slips and the RL-14 summary is included on the RL-15 slip and in Schedule E (Part 3) of the return.

Extended time period for issuing a reassessment to a tax shelter investor

Normally, we have three years from the later of the following dates to issue a reassessment for the taxpayer's taxation year:

• the date on which the original notice of assessment or notice that no income tax is payable for the taxation year was sent;
• the date on which the income tax return is filed for the taxation year.

The prescribed time period for issuing a reassessment or an additional assessment is extended for an individual who invested in a tax shelter while that person was resident in Québec, if the tax shelter promoter:

• did not file an RL-14 slip or an RL-15 slip, as applicable, for the individual within the prescribed time period;
• failed to file an RL-14 slip or an RL-15 slip.

The extended time period ends three years after the date on which the RL-14 slip or RL-15 slip, as applicable, was duly filed.

Reference: 1010(2) (par. (a.2))

Line 01c – Tax shelter identification number

Enter the tax shelter's identification number on line 01c.

Before issuing or selling an interest in a tax shelter or accepting consideration in respect of a tax shelter, the partnership, as the promoter, must apply for an identification number using form TP-1079.2-V, Application for a Tax Shelter Identification Number and Undertaking to Keep Registers, unless an application has already been filed by another promoter for the same tax shelter.

The fact that an identification number has been assigned does not confirm that an investor is entitled to claim tax benefits related to the tax shelter.

Line 30c – Tax shelter's principal business activity code

Enter on line 30c the code corresponding most closely to the principal business activity of the partnership that is a tax shelter. Choose from the following codes:

Lines 30d and 30e – Income (or losses) from the tax shelter

Enter on line 30d the gross income (or losses) and on line 30e the net income (or losses) from a partnership that is a tax shelter.

Line 35 – Boxes 1, 3, 5, 15a, 19 and 52 

Enter in boxes 1, 3, 5, 15a, 19 and 52 the requested information about the fiscal period of the partnership that is a tax shelter.

Box 53 – Limited-recourse amount

Enter in box 53 the amount of the unpaid principal of the indebtedness of all members of the partnership (and, where applicable, of the persons not dealing at arm's length with the members) that can reasonably be considered to be related to the tax shelter, for which recourse against one of the members of the partnership is limited.

Box 54 – At-risk adjustment

Enter in box 54 the total amount that the partners (and, where applicable, the persons not dealing at arm's length with the partners) are entitled to receive, including the value of any benefit they are entitled to receive.

Box 55 – Other indirect reductions

Enter any other limited-recourse amount or at-risk adjustment of other taxpayers who hold, whether directly or indirectly, an interest in the partnership.

6.4.4. Flow-through shares

Complete Part 4 of Schedule E if the partnership invested in flow-through shares directly or through another partnership and, as applicable, it must:

• allocate to its members exploration and development expenses, share issue expenses or amounts of assistance renounced in its favour by a development corporation;
• correct the exploration and development expenses that it allocated previously; or
• allocate security issue expenses renounced in favour of a member that is an individual or a partnership of which an individual is a member. The renunciation, which is made on form CO-726.4.17.15, Sommaire de la renonciation à certains frais d'émission relatifs aux ressources québécoises, is possible only if the proceeds from the security issue were used to acquire flow-through shares.

If the information about exploration and development expenses or share issue expenses is not provided, the partnership is deemed not to have incurred the expenses; if the partnership omits to report amounts of assistance, it is deemed not to have incurred the portion of the expenses related to the amounts of assistance. In either case, the members of the partnership will not be able to deduct their share of the expenses in question.

Effective date

The effective date is the date on which the renunciation is made by a development corporation. Enter, as applicable, either the effective date shown on the RL-11 slip that the partnership received from a development corporation, or the end date of the fiscal period entered on the RL-15 slip received from another partnership (one that invested in flow-through shares and in which the partnership holds an interest).

Identification number

Enter the identification number shown on the RL-11 slip that the partnership received from a development corporation or on the RL-15 slip received from another partnership.

False statements or failure to report an amount of assistance

A partnership that knowingly, or in circumstances amounting to gross negligence, makes a false statement or an omission respecting an amount of assistance is liable to a penalty equal to 25% of the amount.

RL-15 slips

The partnership must indicate on the RL-15 slips:

• the amounts allocated to its members as:
  • Canadian exploration and development expenses and share issue expenses, that is, expenses renounced by a development corporation in favour of the partnership, or expenses allocated to the partnership by another partnership of which it is a member,
  • amounts of financial assistance that, as the mandatary of its members or former members, the partnership received or was entitled to receive for these expenses;
• the revised amounts of expenses previously allocated, where applicable.

Since its members may be eligible to claim certain benefits specific to Québec exploration expenses, the partnership must also provide information pertaining to such expenses on the RL-15 slips.

The partnership must also enter on the RL-15 slips the security issue expenses it renounced in favour of one of its members, if the member is an individual or a partnership one of whose members is an individual. The renunciation, made on form CO-726.4.17.15 is possible only if the proceeds of the security issue were used to acquire flow-through shares.

References: 359.11, 359.11.1, 600(d), 726.4.17.13; 1086R43, 1086R44

Late filing of required documents

Schedule E and the RL-15 slips respecting the allocation of exploration and development expenses and amounts of assistance will be accepted and deemed to have been filed within the prescribed time period if the following conditions are met:

• The documents are filed:
  • by the 90th day after the end of the time allowed; or
  • after that date, if we consider that the circumstances are such that it would be just and equitable to permit the documents to be filed.
• The partnership includes payment of the penalty indicated below.

The penalty is equal to the median of the following three amounts:

• $100;
• $15,000; and
• 0.25% of the expenses or amounts of assistance concerned.

Enter the amount of the penalty in the appropriate space on Schedule E.

References: 359.11, 359.11.1, 359.12.1, 359.12.2, 1049.0.1.1

6.4.5. Other tax credits

A partnership may have incurred expenses that entitle its members to tax credits other than those mentioned in the instructions for box 70. Table 10 lists these credits and the forms that a partnership member must complete to claim them. For more information about one of these credits, refer to the corresponding form.

Table 13 – Summary of other tax credits

The tax credits have been grouped by topic in the table below.

6.5. Schedule F – Net Income for Income Tax Purposes

Complete Schedule F to calculate the net income for income tax purposes of all the partners (line 94) and, if applicable, to apportion the net income between general partners (line 95) and specified members (line 100).

Enter all the elements that, under the Taxation Act, must be added to or subtracted from the net income (or net loss) shown in the financial statements.

A specified investment flow-through partnership (SIFT partnership) must adjust certain income amounts before allocating them to its members (see the instructions on form TP-1129.71-V, Income Tax Payable by a SIFT Partnership).

6.5.1. Partnerships that carry on a farming or fishing business

If, during the fiscal period, the partnership operated a farming or fishing business and it elected in its information return submitted to the Canada Revenue Agency (CRA) to replace the accrual method of accounting by the cash method, enter the value of the accrual inventory at the start and the end of the fiscal period on lines 37 and 73, respectively.

Farming business

If a partnership elected to use the cash method of accounting and it sustained a loss from the operation of a farming business in a given fiscal period, it must include in its income an amount called the “mandatory inventory adjustment for the fiscal period.” This amount is equal to the lesser of the following amounts:

• the amount of the loss;
• the value of the property purchased during the fiscal period and listed in the inventory at the end of the fiscal period.

Enter this amount on line 38 of the copy of Schedule F filed for that fiscal period.

Such a partnership can include in its income an amount called “optional inventory adjustment for the fiscal period,” which is equal to the amount by which the value of the inventory at the end of the fiscal period exceeds the amount on line 38. Enter this amount on line 39 of Schedule F.

Deduct these adjustment amounts on lines 74 and 75 of the copy of Schedule F that will be filed for the following fiscal period.

References: 194 (2nd par.)(b), 194 (2nd par.)(c), 194 (3rd par.)(b)

6.5.2. Deductible financing expenses

Deductible financing expenses are:

• any expenses incurred either to obtain a loan used to earn business or property income that is not tax-exempt income, or to contract a debt that constitutes an amount payable respecting property acquired to earn such an income;
• any expenses incurred in the course of rescheduling or restructuring a debt obligation or an assumption of a debt obligation, if the debt obligation is related to the loan or the debt in question.

The deductible amount of financing expenses for a given fiscal period is calculated on the basis of the ratio between the number of days in the fiscal period and 365. The amount is limited to 20% of the total expenses incurred during the fiscal period or a previous fiscal period. However, the deductible amount must not exceed the amount by which the total expenses incurred in the fiscal period or in a previous fiscal period exceed any deductible amount from a previous fiscal period.

Enter the financing expenses from the financial statements on line 17 and the deductible financing expenses on line 65.

No amount is deductible as financing expenses on line 65 if the partnership ceased to exist during the fiscal period. However, its members can deduct, for their taxation year that includes the time at which the partnership ceased to exist or for the following taxation year, their share in the amount that would otherwise be deductible for the partnership had it continued to exist.

References: 147, 147.1, 147.2, 176, 176.1, 176.3

6.5.3. Resource expenses to be allocated to partners

The partnership cannot deduct resource expenses such as Canadian exploration and development expenses, Canadian oil and gas property expenses or foreign resource expenses it incurred as an operating partnership, or as a member of an operating partnership.

The partnership cannot deduct Canadian exploration and development expenses that were renounced in its favour, further to an investment in flow-through shares.

However, all above expenses are deemed to have been incurred by the members of the partnership and must consequently be allocated to the members. Members can then deduct the amount of the expenses allocated to them in the calculation of their income, in accordance with the instructions for boxes 28, 29, 30 and 31 or boxes 60 and 61 of the RL-15 slip, as applicable. The instructions are given in the document RL-15 Slip: Amounts Allocated to the Members of a Partnership (see courtesy translation RL-15.EX-T).

Enter on line 30 of Schedule F the resource expenses to be allocated to the partners if they were deducted in the financial statements. See Resource expenses incurred by operating partnerships and Flow-through shares for information about the expenses to allocate to partners.

Reference: 600(d)

6.5.4. Deduction of R&D expenditures

To claim R&D expenditures for a fiscal period, a partnership must complete form RD-222-V, Deduction Respecting Scientific Research and Experimental Development Expenditures, and enclose it with the return. The deductible amount is the amount on line 90 of form RD-222-V filed for the year.

Members of a partnership, other than specified members, can claim a refundable tax credit for certain R&D expenditures.

Enter, on line 12, the R&D expenditures that were deducted in the financial statements, and, on one of lines 77 through 84, the R&D expenditures deductible for the year that were determined using form RD-222-V.

Reference: 222

6.5.5. Deduction of expenses relating to the use of a portion of a partner's home in the operation of a business

Where a partnership uses a portion of the home of one of its members and pays rent to the member or incurs expenses for use of the member's home, the partnership can claim an amount for the space used (“work space”). However, the work space must be the partnership's principal establishment, or be used by the partnership exclusively to earn income and to meet clients, customers or patients on a regular and ongoing basis.

As a rule, the amount that the partnership can deduct for the work space is limited to:

• 50% of any amount otherwise deductible, other than as CCA (rent, maintenance and repair expenditures, mortgage interest, property taxes, insurance premiums, etc.), if the expenditures relate to both the work space and the rest of the home;
• 100% of any amount otherwise deductible as CCA (if a capital expenditure cannot reasonably be considered to be entirely attributable to the work space, only 50% of the expenditure can be taken into account);
• 100% of any amount otherwise deductible for expenditures made entirely for the work space, other than rent.

If the partnership holds the required permit and uses a space in the home of one of its members to operate a private residential home (such as a senior citizen's residence or a nursing home), a tourist home, a bed and breakfast establishment or an establishment within a hospitality village, the 50% limit mentioned above does not apply.

Whether or not the partnership operates a sleeping-accommodation establishment, the deduction must not create or increase a business loss. Any amount that cannot be deducted for the fiscal period because of this restriction can, in the next fiscal period, be considered an allowable amount in respect of expenditures made entirely for the work space.

Enter, on one of lines 40 through 47, the non-deductible portion of the rent for the work space used.

6.5.6. Deduction of labour costs for work on an immovable

Where a partnership incurred labour costs for the renovation, maintenance or repair of a building, a structure or land located in Québec and used to earn income, a designated member of the partnership must provide information about any person (other than an employee of the partnership) that carried out the work. To do so, the designated member must complete form TP-1086.R.23.12-V, Costs Incurred for Work on an Immovable, and file it with the designated member's income tax return for the taxation year during which the partnership's fiscal period ended. If the designated member of the partnership is not required to file an income tax return for the taxation year covered, a duly completed copy of form TP-1086.R.23.12-V must be filed by the date on which the designated member would be required to file the return if the designated member had income tax payable.

If no member of the partnership has been designated to file form TP-1086.R.23.12-V, each member is required to file the form.

A partnership is liable to a penalty of $200 for each person regarding whom the required information is not provided on form TP-1086.R.23.12-V.

References: 1086R88; TAA 59.0.2 (2nd par.)

6.5.7. Deduction of entertainment expenses

As a rule, for the purposes of calculating the deduction for entertainment expenses related to a business or property of the partnership, the limits detailed below apply to the cost of entertainment, food and beverages.

• Only 50% of the lesser of the following amounts must be taken into account:
  • the amount of expenses incurred;
  • an amount considered reasonable under the circumstances.
• The result obtained is then subject to a limit based on the gross income derived from the business or property.

For each source of income, the limit is calculated as follows:

• 2% of the gross income, if the gross income is $32,500 or less;
• $650, if the gross income is greater than $32,500, but less than $52,000;
• 1.25% of the gross income, if the gross income is $52,000 or more.

Partnership members who incurred expenses for entertainment, food or beverages for the business or property cannot deduct an amount for these expenses in the calculation of their income.

Enter, on line 21, the non-deductible portion of meal and entertainment expenses.

6.5.8. Additional CCA of 30% for certain property in classes 14, 14.1, 43.1, 43.2, 44, 50 and 53

A partnership that acquired, after December 3, 2018, but before January 1, 2024, property constituting manufacturing or processing equipment, clean energy generation equipment, computer equipment or qualified intellectual property can, under certain conditions, claim the additional CCA corresponding to 30% of the CCA related to the property for the previous fiscal period.

The table below shows which conditions property must meet to qualify, other than being acquired after December 3, 2018, but before January 1, 2024. All property of a same class that qualifies for the additional CCA of 30% must be grouped in a separate class. For example, there will be a class 50 for property in that class acquired before December 4, 2018, and a separate class 50 for property in that class acquired after December 3, 2018, but before January 1, 2024, that qualifies for the additional CCA.

Reference: 156.7.6

6.5.9. Reduction of an expenditure related to a tax shelter investment

If a partnership incurs an expenditure and either the expenditure itself or a partner's interest in the partnership constitutes a tax shelter investment, the partnership must reduce the expenditure by subtracting any limited-recourse amount or any at-risk adjustment considered to be related to the expenditure. If the amounts were not subtracted on the financial statements, enter them on one of lines 40 through 47.

References: 851.38–851.50

7. Province, territory and country codes

Table 15 gives the province and territory codes (two letters), and Table 16 gives the country codes (three letters). These codes must be used in box C on line 11 of Schedule A.