Instructions for Applying Static Value in T5013 Slip Preparation
Overview
The Static Value method is used when a specific amount needs to be applied identically to every investor’s T5013 slip, regardless of their ownership percentage or duration in the partnership.
This approach is not based on ownership allocation (pro rata or time-weighted), but instead simply populates the same value for all slips — typically for reporting purposes where a uniform value is required across all limited partners.
Key Principle
- When using the Static Value option, the value entered will be applied verbatim to the selected T5013 box for every investor, regardless of their units or shareholding.
- This method bypasses ownership-based calculations entirely.
⚠️ Note: Use this method only in cases where the CRA requires identical information to be reported across all slips for a specific box. Do not use this method for income allocations or distributions, as it does not reflect investor-level variances.
Example: Static Value Entry
Let’s say the Financial Controller inputs $500,000 into Box 123 (Limited Partner’s Share of Net Income (Loss)) using the Static Value method.
| T5013 Slip | Box 123 Value |
| Investor A | $500,000 |
| Investor B | $500,000 |
| Investor C | $500,000 |
Regardless of each investor’s ownership percentage, every T5013 slip generated will display $500,000 in Box 123.
This same behavior would apply if a static value were entered in other boxes (e.g., Box 135, 151, etc.) — the input amount will appear identically on all slips.
✅ Reminder for Controllers
- Static values override ownership logic. Ensure this method is appropriate for your reporting context before use.
- Do not use this option for income distributions or return of capital unless explicitly required by CRA or a specific reporting scenario.
- For ownership-based reporting, use pro rata or time-weighted allocation methods as appropriate.
Instructions for Applying Pro Rata Allocation in T5013 Slip Preparation
Overview:
When preparing T5013 tax slips for investors in a partnership, a pro rata allocation method is used when there have been no changes to the Corporate Securities Register (CSR) throughout the calendar year. Under this method, each investor’s share of partnership income (or loss) is allocated based on their percentage of ownership in the partnership.
Key Principle:
- Pro rata allocation ensures that amounts reported on each investor’s T5013 slip (e.g., Box 456) are distributed in direct proportion to their ownership percentage.
- The total amount entered into a box (e.g., Box 456) is automatically divided by the system based on the actual unit/share ownership for each investor.
- Each investor’s aggregated value appears as a single amount on their T5013 slip.
Example: Pro Rata Allocation
Assume the partnership has the following ownership structure:
| Investor | Units Owned | Ownership % |
| A | 50 units | 50% |
| B | 30 units | 30% |
| C | 20 units | 20% |
| Total | 100 units | 100% |
If the Financial Controller enters $100,000 into Box 456, the amount will be allocated proportionally to each investor based on their ownership percentage.
| Investor | Ownership % | Pro Rata Amount (Box 456) |
| A | 50% | $50,000 |
| B | 30% | $30,000 |
| C | 20% | $20,000 |
Each investor’s T5013 slip output will reflect only their allocated share as follows:
- Investor A T5013:
- Box 456: $50,000
- Investor B T5013:
- Box 456: $30,000
- Investor C T5013:
- Box 456: $20,000
These values are presented as aggregate amounts.
Reminder:
- This pro rata method should only be applied when the CSR has remained unchanged throughout the calendar year.
- If there have been changes to unit/share ownership during the year (e.g., transfers, redemptions), use a time-weighted allocation method instead.
- Always ensure calculations match the current share/unit registry before finalizing T5013 slips.
Instructions for Applying Time-Weighted Allocation in T5013 Slip Preparation
Overview
The time-weighted allocation method is used when there have been changes to the Corporate Securities Register (CSR) during the calendar year. This method ensures accurate allocation of partnership income and return of capital based on each investor’s ownership duration and percentage throughout the year.
The time-weighted method is applied only to distributions processed through the addy distribution system and across the following recognized distribution classifications:
- Interest income
- Rental income
- Capital gains
- Return of capital
- Business income
⚠️ Important: This feature must not be used if:
- Any distributions were made outside the addy distribution system, or
- Any distribution classification is set as “Other”
In these cases, the controller must manually prepare T5013 slips, as the time-weighted allocation tool will not produce accurate or compliant results.
Key Principles of Time-Weighted Allocation
- Break the calendar year into periods based on changes in unit/share ownership (date of record).
- Each period should reflect the updated ownership distribution as shown in the CSR.
- Apply allocation separately for each distribution classification.
- Each income type (e.g., interest, rental, capital gains) must be allocated using the time-weighted percentages for the relevant period.
- Aggregate the calculated amounts for each classification and report them in the corresponding T5013 boxes.
- Each investor’s T5013 slip will display the final total per classification.
Example: Time-Weighted Allocation
Scenario: CSR Change Mid-Year
Ownership changes occurred on July 1, when Investor A sold units to Investor B.
| Period | Investor A | Investor B | Investor C | Total Units |
|---|---|---|---|---|
| Jan 1 – Jun 30 | 50 units (50%) | 30 units (30%) | 20 units (20%) | 100 units |
| Jul 1 – Dec 31 | 40 units (40%) | 40 units (40%) | 20 units (20%) | 100 units |
Distribution Totals by Classification:
| Distribution Classification | Total Amount |
| Interest Income | $10,000 |
| Rental Income | $20,000 |
| Capital Gains | $15,000 |
| Return of Capital | $5,000 |
| Business Income | $50,000 |
Step-by-Step Example: Interest Income Allocation (Box 135)
| Investor | Jan–Jun (50% period) | Jul–Dec (50% period) | Total Interest Allocation |
| A | (50% × $5,000) = $2,500 | (40% × $5,000) = $2,000 | $4,500 |
| B | (30% × $5,000) = $1,500 | (40% × $5,000) = $2,000 | $3,500 |
| C | (20% × $5,000) = $1,000 | (20% × $5,000) = $1,000 | $2,000 |
Repeat the same process for each classification, using the same period-based percentages.
Final T5013 Allocation Summary per Investor
| Investor |
Interest (Box 135) |
Rental (Box 136) |
Capital Gains (Box 151) |
Return of Capital (Box 113) |
Business Income (Box 118) |
| A | $4,500 | $9,000 | $6,750 | $2,250 | $22,500 |
| B | $3,500 | $7,000 | $5,250 | $1,750 | $17,500 |
| C | $2,000 | $4,000 | $3,000 | $1,000 | $10,000 |
Entering Final Totals into T5013 Slips
Each investor’s T5013 slip will show the total allocated amount per classification. These values will appear in:
- Box 135 – Interest Income
- Box 136 – Rental Income
- Box 151 – Capital Gains
- Box 113 – Return of Capital
- Box 118 – Business Income
✅ Final Reminders for Controllers
- This tool is designed for clean, time-weighted allocations only within the addy distribution system.
- Do not use this function if:
- Distributions were made manually, off-system, or via other channels.
- Any distribution type is labeled as “Other” instead of a supported classification.
- For all such cases, prepare slips manually to ensure accuracy and compliance.