If you’re a member of a partnership, you’ll receive a T5013: Statement of partnership income slip from your partnership which reports your share of the partnership income or loss. Since a partnership doesn’t usually pay income tax on its income, each partner needs to report their share on their own income tax return, whether it was received in cash or as a credit to their capital account.
If you didn’t receive a T5013 slip, you still need to report your partnership income, loss, and/or expenses. You can calculate this on one or more of the following forms, along with your partnership’s financial statements:
- T2125: Statement of business or professional activities
- T2121: Statement of fishing activities
- T2042: Statement of farming activities
- T776: Statement of real estate rentals
If you’re a resident of Québec, you also need to enter your Relevé 15: Amounts allocated to the members of a partnership (RL-15) slip in H&R Block’s tax software to report your share of the partnership's income or loss.
If your partnership is a resident business in Canada, you can elect (under section 261) to report earnings in a functional currency. As a rule, a functional currency is the currency of a country other than Canada that is:
- the primary currency in which the business maintains its records for financial reporting and
- a qualifying currency (currently, these only include the US dollar (USD), the Australian dollar (AUD), the British pound (GBP), and the euro (EUR))
If your business meets the following requirements, you can elect to report your earnings using a functional currency:
- the business is not an investment corporation, mortgage investment corporation, or a mutual fund corporation
- there’s a functional currency for the first tax year to which the election made on form T1296 applies
- you haven’t filed or revoked a previous election to report in a functional currency and
- your election is filed on time
Note: For tax years beginning after July 12, 2013, the election must be filed with the Canada Revenue Agency (CRA) within the first 61 days of the tax year (to which the election applies).
Where do I claim this?
Follow these steps in H&R Block's 2018 tax software:
- On the QUICK ENTRY tab, click the QUICK SLIP icon. You will find yourself here:
- Type T5013 in the search field and either click the highlighted selection or press Enter to continue.
- When you arrive at the T5013 page, enter your information into the tax software.