Where do the boxes on my client's T5013 slip go on a T1, and what changes for a corporate partner on the T2?
On a 2025 T1, T5013 box 116 business income goes on Form T2125 and line 13500, box 110 rental income on Form T776 and line 12600, and box 151 capital gains on Schedule 3 line 17400. A limited partner reports box 104 on line 12200 instead. A corporate partner reports on its T2 and keeps the slip.
Where does each T5013 box go on a T1?
These are the CRA's own instructions to an individual who receives the slip, from the current T5013 recipient instructions canada.ca. Enter the detail boxes, not the totals: box 010 is the sum of the box 104 amounts, box 020 the sum of box 116, and box 030 the sum of the capital gains boxes, so entering a total as well double counts
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| Box | What it holds | Where it goes on the T1 |
|---|---|---|
| 104 | Limited partner's business income (loss) | Line 12200 (partner code 5: T2125 amount 5A, line 13500) |
| 107 | Limited partner's rental income (loss) | T776 line 7, then line 12600 |
| 108 | Limited partner's loss available for carry forward | Nothing this year; track it |
| 109 | Previous loss carry forward eligible this year | Line 25100 |
| 113 | Return of capital, including drawings | No line; reduces the ACB of the interest |
| 110 | Net rental income (loss) | T776 amount 7, then line 12600 |
| 114 | Other income | Line 13000 |
| 116 | Business income (loss) | T2125 amount 5A, then line 13500; gross in box 118 goes on line 13499 |
| 120 | Professional income (loss) | T2125 amount 5A, then line 13700 |
| 122 | Commission income (loss) | T2125 amount 5A, then line 13900 |
| 128 | Interest from Canadian sources | Line 12100 |
| 130 / 133 | Taxable other dividends / taxable eligible dividends | Lines 12000 and 12010 / line 12000 |
| 131 / 134 | Dividend tax credits | Line 40425 |
| 151 | Capital gains (losses) | Schedule 3 line 17400 |
| 168 | Income tax deducted | Line 43700 |
| 182 | Eligible charitable donations | Schedule 9 line 1 |
| 210 | Total carrying charges | Line 22100, only charges not already used in another box |
| 040 | CCA the partnership already claimed | Do not deduct it again; used for Form T691 (AMT) |
Keep one copy of the slip and attach the other to the T1 canada.ca.
Business, rental or capital: the box and the partner code decide the line
Read box 002 first. It holds the partner code: 0 for a limited partner at any time in the fiscal period, 1 for a specified member who isn't a limited partner, 2 for a general partner, 3 for a limited partner's exempt interest under s. 96(2.5), 4 for a nominee or agent, 5 for a partner of a limited liability partnership and 6 for a retired member paid under s. 96(1.1). Box 004 says whether the partner is an individual (1), a corporation (3) or a trust, partnership or similar holder (4) canada.ca.
The code drives the boxes. Boxes 101, 103, 104 and 107 are for limited partners only; boxes 116, 124 and 126 are for every partner who isn't a limited partner canada.ca. Box 104 goes on line 12200, except that a partner with code 5 puts it on the T2125 and line 13500
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Box 116 has its own passive partner rule. A partner who wasn't actively involved in the partnership, and isn't in a business or profession similar to it, reports the net amount on line 12200 instead of the T2125 canada.ca. The CRA's line 12200 page applies the same test
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Rental income from box 107 or box 110 goes through the T776 to line 12600. If your client also owns rental property directly, combine the partnership rental income or loss with their own, and claim CCA on their own buildings only up to the combined rental income (box 220 shows the partnership's rental CCA) canada.ca.
Box 151 is the full capital gain or loss, entered on Schedule 3 line 17400; the schedule applies the inclusion rate, which stays at 50% for 2025 and 2026 because the increase was cancelled (see capital gains inclusion rate). Gains eligible for the capital gains exemption sit in separate boxes split by date: box 153 for QSBC share dispositions before June 25, 2024 and box 276 after June 24, 2024, both on line 10700. Box 289 is the part taxed at a 100% inclusion rate under s. 100(1), entered on line 25 of Schedule 3 canada.ca.
How does a limited partner's slip carry onto the T1?
Your client is a limited partner (box 002 code 0) in a real estate limited partnership with a December 31, 2025 year end. Her slip shows these amounts.
| Box | Amount | T1 treatment | Effect on net income |
|---|---|---|---|
| 105 at risk amount | $8,000 | Reconciliation only | None |
| 107 rental loss | ($8,000) | T776 line 7, line 12600 | Minus $8,000 |
| 108 loss available for carry forward | $4,000 | Not deductible this year | None |
| 113 return of capital | $3,000 | Reduces ACB, no line | None |
| 128 Canadian interest | $400 | Line 12100 | Plus $400 |
| 151 capital gains | $5,000 | Schedule 3 line 17400, 50% inclusion | Plus $2,500 on line 12700 |
Her net income moves by minus $8,000 plus $400 plus $2,500, a net reduction of $5,100. Her share of the rental loss was really $12,000, but only $8,000 fits under the at risk amount; the other $4,000 is in box 108 and waits for a year in which she has a positive at risk amount.
On the cost base side, take $3,000 off the ACB for box 113 and $8,000 for the loss she deducted. The $4,000 in box 108 does not reduce the ACB, because s. 53(2)(c)(i) excludes a limited partnership loss from the deduction laws-lois.justice.gc.ca.
How the at risk amount caps a limited partner's loss
A limited partner's share of a loss from a business (other than farming) or from property is deductible only up to the at risk amount at the end of the partnership's fiscal period, under s. 96(2.1) of the Income Tax Act laws-lois.justice.gc.ca. In broad terms the at risk amount is the ACB of the interest plus the partner's share of current year income, minus amounts the partner owes the partnership and any guarantee or other protection against loss
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On the slip, box 105 is the at risk amount and box 106 the adjusted at risk amount, both used only to reconcile. Box 108 is the part of this year's loss that can't be deducted. It carries forward indefinitely, and your client can deduct it in a later year only with a positive at risk amount after applying s. 111(1)(e). Box 109 is the old loss that qualifies this year, claimed on line 25100 canada.ca.
Carrying charges follow the same limit: for a limited partner, box 210 holds only the charges the at risk rules don't restrict canada.ca. The full calculation, with exempt interests and tax shelters, is on the T5013 at risk amount page.
What does box 113 do to the adjusted cost base?
Box 113 is capital, including drawings, returned to your client from the limited partnership. It isn't income; use it to reduce the ACB of the partnership interest canada.ca. The slip has no box for the ACB of the interest itself, so you keep the running total year to year.
Section 53 sets the moves: add the share of income for each fiscal period that ended earlier under s. 53(1)(e)(i), add capital contributions under s. 53(1)(e)(iv), deduct the share of losses under s. 53(2)(c)(i) and deduct amounts received as the partner's share of profits or capital under s. 53(2)(c)(v) laws-lois.justice.gc.ca. The general method for a cost base is on the adjusted cost base page.
Watch for a negative ACB. For a limited partner, or a member who has been a specified member at all times since joining, the amount by which the s. 53(2) deductions exceed the cost and s. 53(1) additions at the end of a fiscal period is deemed a capital gain under s. 40(3.1) and (3.11). A later deemed loss can be elected under s. 40(3.12), capped by the earlier deemed gains and the ACB at that time laws-lois.justice.gc.ca. The CRA's T2 guide puts it plainly: interests held by a limited partner or an inactive partner are subject to the negative ACB rule
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How does a corporate partner report the slip on the T2?
A corporate partner reports the slip amounts on the T2, following the T2 guide canada.ca. The income belongs to the corporation's tax year in which the partnership's fiscal period ends, under s. 96(1)(f) for income and s. 96(1)(g) for losses
laws-lois.justice.gc.ca.
| Slip amount | Where it goes on the T2 |
|---|---|
| The slip itself | Keep it in case the CRA asks; don't file it. Attach a list of every partnership account number the corporation holds |
| Box 149 active business income in Canada | Schedule 7, specified partnership income, limited to a pro rata share of a notional $500,000 business limit |
| Box 151 capital gains (losses) | Schedule 6, not line 129 of Schedule 1 |
| Box 289 gain at 100% inclusion | Supporting line for line 902 of Schedule 6 |
| Limited partner loss above the at risk amount | Schedule 4 Part 7, column 620, added to line 222 of Schedule 1 |
| Prior year limited partnership losses used now | Line 335 of the T2 |
The T2 guide sets out the filing rules: corporate partners don't file the slip but list their partnership account numbers canada.ca. For the small business deduction, a member completes Schedule 7, and a designated member's specified partnership business limit is nil unless a member assigns it some
canada.ca. Capital gains go to Schedule 6, and a corporate limited partner runs the at risk limit through Part 7 of Schedule 4
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If a corporate limited partner gets no slip because the partnership didn't have to file, attach the partnership's financial statements to the T2 to support its share of the loss canada.ca.
Sources
What if my client never got a T5013 slip?
Report the share of income or loss anyway, from the partnership's financial statements. For a paper T1, the CRA says to attach a copy of the partnership's financial statement canada.ca. Many small partnerships of individuals don't have to file a T5013 at all; the tests are on the T5013 filing deadline page.
Can my client deduct the CCA in box 040?
No. Box 040 is CCA the partnership already used to arrive at the income in the business boxes, so deducting it again double counts. It's there for the alternative minimum tax calculation on Form T691 canada.ca.
When should the slips reach the partners?
By the day the T5013 return is due. For a December 31, 2025 year end that was March 31, 2026 when any partner is an individual or trust, and June 1, 2026 when every partner is a corporation. Late slips can draw $25 a day, capped at $2,500; the full rules are on the T5013 filing deadline page.
Does a corporate partner attach the T5013 slip to its T2?
No. Corporate partners keep the slip in case the CRA asks for it, and attach a list of the partnership account numbers of every partnership they're a member of canada.ca.
General information for the tax year shown, not advice for a specific client. Confirm the facts before you file or remit.