CO-771.2.1.2, Income of a Corporation That Is a Member or Designated Member of a Partnership From an Eligible Business Carried On in Canada by the Corporation

This form is to be completed by any corporation that is a member of a partnership or a designated member of a partnership and that must calculate its income from an eligible business it carried on in Canada.

If the corporation is a member of the partnership and it allocated part or all of its specified partnership’s business limit to a corporation that is a designated member of this partnership, the amount of the business limit allocated should display on line 28b. This amount is calculated based on the data from Form CO-771.2.1.AT, Business Limit Allocated to a Corporation that Is a Designated Member of a Partnership (Jump Code: 77121AT). The corporation’s income for the taxation year from services or property will also be displayed on line 12aa, if applicable. This income is determined based on the amount in column D1 of table 1 of Part 4 in Schedule 7 (Jump Code: 7).

If the corporation is a designated member of the partnership, its income for the taxation year from services or property provided to the partnership should display on line 12aa and, if applicable, the business limit allocated to the corporation by a member of the partnership should display on line 29a. The amount on line 12aa is determined based on the amount in column D1 of table 1 of Part 4 in Schedule 7, and the amount on line 29a is determined using the information from Form CO-771.2.1.AT.

Note that if the taxation year of the corporation starts after December 31, 2016, Section 3.2.1 is completed only if you have answered “Yes” to the question Is the number of paid hours of the employees of the partnership in the fiscal period ending in the taxation year of the corporation greater than 5,000 hours? or the question Does the partnership carry on its activities in the primary sector or in the manufacturing sector?, in accordance with the instructions of the form.

Also note that in Part 2, the Partnership’s federal account number displayed in Form Information About Partnerships in now indicated on Form CO-771.2.1.2, on screen only, in order to establish a correspondence between Forms CO-771.2.1.2 and CO-771.2.1.AT in situations where the partnership is not registered with the Registraire des entreprises du Québec. If the partnership does not have a federal account number, the correspondence will be established using its name.