Every practitioner eventually meets a partnership file — and that is where the certainties of T1 and T2 work fall away. An entity that isn’t a person but computes income as if it were one. Income that flows through but keeps its character. Losses that vanish against at-risk limits. A negative cost base that suddenly becomes a taxable capital gain. Partnership taxation follows its own logic, and this course teaches you that logic from the ground up and all the way through. 

Structured around the complete life cycle of a partnership — formation, operation, reorganization, and dissolution — this hands-on program takes you from the legal foundations (general partnerships, limited partnerships, LLPs) through the mechanics of computing and allocating partnership income, and into the territory where real money is won or lost: adjusted cost base tracking, negative ACB traps, at-risk rules for limited partners, and the rollover provisions that make tax-deferred reorganizations possible. 

You won’t just learn the rules — you’ll learn the forms and filings. The course works directly through the T5013 Partnership Information Return and its supporting schedules (Schedules 1, 2, 5, 6, 8, 9, 12, 50 and more), walks through the actual election forms — T2059 for section 97(2) rollovers, T2060 for 98(3) wind-ups, T2058 for 85(2) incorporations, and T1139 fiscal period elections — and covers the filing deadlines, electronic filing mandates. 

Worked examples run throughout — five scenarios on who must file a T5013, mini cases on ACB and at-risk computations, dissolution scenarios with recapture and capital gain calculations — culminating in a comprehensive practical case study that ties the entire course together. 

Whether you’re advising professional firms, real estate partnerships, family ventures, or corporate groups using partnerships in their structure, you’ll leave able to handle the file with confidence — from the first registration of a business number to the final T5013. 

Note: No software installation is required; the course demonstrates the rules using CRA forms, schedules, worked examples, and case studies. 

Topics Include 

Module 1: Foundation of Partnership 

• What a partnership is — the provincial law definition, key features, and how it differs from a joint venture 
• The 96(1) fictions: a partnership is not a person, yet computes income as if it were — and why partner and partnership income are distinct 
• Types of partnerships: general, limited, and limited liability partnerships (LLPs); Canadian, tiered, SIFT, and public partnerships 
• Types of partners: general, limited, and specified partners — and why the distinctions drive loss limits, ITCs, and attribution 
• Who must file a T5013 — the $2 million revenue-plus-expense test, the $5 million asset test, tiered structures, corporate and trust partners — illustrated through five worked examples 
• Income reporting by partner type: T2125/T2121/T2042/T776 for individuals, T3 treatment for trusts, and GIFI plus Schedules 71–73 for corporate partners 

Module 2: Taxation of Partnerships & Partners 

• Computing partnership income: GAAP profit under 9(1), Schedule 1 (T5013S1) reconciliation, and why there are no Division C deductions 
• How partnerships differ from corporations: capital gains and losses, charitable donations, partner salaries (add-backs and draws), consumed products, and the CRA’s position on automobile allowances paid to partners 
• Common Schedule 1 adjustments — from meals and entertainment to accrued bonuses, reserves, fines and penalties, CCA, terminal losses, and recapture 
• The supporting schedules in depth: Schedule 2 (donations and political contributions), Schedule 5 (multiple jurisdictions and tiered disclosure), Schedules 9 and 50 (partnership interests and partner account activity) 
• Allocating income to partners: source-character preservation for dividends, foreign income, capital gains, and capital gains exemption eligibility 
• Adjusted cost base (ACB) mastery — the 53(1)(e) additions and 53(2)(c) deductions, timing traps, and the draws-as-loans planning solution 
• The negative ACB trap — when subsection 40(3.1) deems a capital gain for limited partners and specified members, the 40(3.12)-mitigation election, and the 40(3.13) anti-avoidance rule 
• At-risk rules under 96(2.4): how they limit limited partner losses — reinforced with two mini cases 

Module 3: Partnership Reorganizations 

• Section 97(2) rollovers — transferring property to a partnership tax-deferred: eligible transferors, transferees, and property, plus a full walkthrough of Form T2059 and the late-filing penalty regime 
• Dissolution without a plan: a worked scenario showing the recapture and capital gains triggered when no rollover is used 
• The dissolution rollovers, compared: 98(3) pro-rata wind-up (Form T2060), 98(5) continuation as a sole proprietorship (automatic — including the three-month rule), 98(6) continuations into a new partnership, and 85(2) transfer to a corporation (Form T2058) 
• Admitting a new partner: purchase of an existing interest vs. capital contribution — and the tax consequences of each route 

Module 4: Administrative Matters 

• Fiscal periods: the calendar year default, the T1139 “alternative method” election, and who is barred from using it 
• Stub period income inclusion — a full worked example of the additional income calculation and its reversal 
• Multi-tier partnerships and the common fiscal period requirement 
• Filing deadlines by partner composition — March 31, five months, or earlier on cessation 
• The penalty framework: mandatory electronic filing penalties, the $100/$25-per-day late filing penalty, and escalating penalties for repeat failures 

Module 5: Partnerships in the Corporate Structure 

• The small business deduction and specified partnership income (SPI) — how the $500,000 limit is shared among corporate partners 
• The section 34.2 anti-deferral rules: the “significant interest” test, stub-period accruals, and Schedules 71 and 72 
• Shareholder loan rules under 15(2) and when partnerships escape them 

Module 6: Other Topics in Partnership 

• Rental properties: the no-loss-from-CCA rule and the three-step method for combining partnership and personal rental income 
• Income attribution and subsection 96(1.8): when a specified member’s partnership income is deemed property income 
• Foreign reporting for partnerships — T1134, T106, T1135, T1141, T1142, and country-by-country reporting (RC4649) 
• Capital gain reserves for deferred proceeds — the five-year mechanics and Worksheet C 
• The lifetime capital gains exemption through a partnership: QSBC gains, character preservation, and T5013 reporting 
• Allowable Business Investment Losses (ABIL) in a partnership — carryover rules and slip reporting 

Module 7: Practical Application & Comprehensive Case Study 

• A start-to-finish case study applying the full course: filing determination, income computation, Schedule 1 adjustments, allocations, ACB tracking, and slip preparation 

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Upon completion of this course, learners will be able to: 

• Determine with confidence when a partnership must file a T5013 — and when it is exempt 
• Compute partnership income for tax purposes and complete Schedule 1 and the key supporting schedules correctly 
• Allocate income, losses, donations, and credits to partners while preserving source character on the T5013 slips 
• Track adjusted cost base accurately and anticipate — and plan around — the negative ACB deemed gain under 40(3.1) 
• Apply the at-risk rules to limited partner loss claims 
• Execute tax-deferred reorganizations using 97(2), 98(3), 98(5), 98(6), and 85(2) — and prepare Forms T2059, T2060, and T2058