These forms are used to calculate the income or loss for tax purposes from all partnerships of which the corporation is a member.
Form CO-17.B.1, Amount to Be Included in the Income of a Corporation That Is a Member of a Partnership (Jump Code: Q17B1) is used to calculate the amounts that must be included in the calculation of the corporation’s income, with respect to all partnerships, single- or multi-tier, of which the corporation is a member and whose fiscal period year end does not coincide with the corporation’s taxation year end.
A single-tier partnership is a partnership that is not a member of another partnership, whereas a multi-tier partnership is a partnership that is a member of another partnership. Data entered in federal Schedule 71, Income Inclusion for Corporations that are Members of Single-Tier Partnerships (Jump Code: 71) and 72, Income Inclusion for Corporations that are Members of Multi-Tier Partnerships (Jump Code: 72) will be automatically transferred to Forms CO-17.B.1.
When the end of the fiscal period of the partnership does not coincide with the filing corporation’s taxation year end, the adjusted stub period accrual (ASPA) must be calculated. The stub period corresponds to the period included between the partnership’s fiscal period start date that begins in the corporation’s taxation year and the filing corporation’s taxation year end.
The income shortfall adjustment amount and the additional amount are calculated in Part 5 of Form CO-17.B1.
Form CO-17.B, Adjustment of Income from one or more Partnerships (Jump Code: Q17B) is a summary form that is then used to group the amounts that should be added or deducted in the corporation’s income. The amounts to include or deduct come from the corresponding parts in the copies of form CO-17.B.1 completed for all targeted partnerships and are presented by income type (business income in Part 3, property income in Part 4, other income in part 5 and taxable capital gain in part 8). The income shortfall adjustment amount and the additional amount are grouped in Part 6. The amounts from lines 21, 23, 25 and 38 are then added up in Part 7 and the amount on the line 45 is updated to line 54a in form CO-17.A.1, Net income for income tax purposes (Jump Code: Q1). The total taxable capital gains on custom line AA and the total allowable capital losses on custom line BB in Part 8 are used in respectively completing lines Taxable capital gains under sections 217.18 to 217.34 TA and Allowable capital losses under sections 217.18 to 217.34 TA in form CO-17S.232, Summary of dispositions of capital property (Jump Code: Q6).
For more information, refer to sections 217.18 to 217.37 of the Québec Taxation Act as well as the related topics for federal Schedules 71, 72 and 73.
See Also
Schedule 73, Income Inclusion Summary for Corporations that are Members of Partnerships