Form T2152

What is the T2152 Form?

The form T2152, also known as "Withdrawal from the Lifelong Learning Plan (LLP)", is a legal document released by the Canada Revenue Agency (CRA). This form allows taxpayers to withdraw from Registered Retirement Savings Plans (RRSPs) to finance their education or that of their spouse. The amount withdrawn isn't taxed as long as it's repaid within the stipulated timeframe.

Role of PDFliner

Accessing and completing these sometimes intricate tax forms can pose challenges. PDFliner presents a solution to this, supplying a platform where you can access and fill in forms online, including the t2152 form. Through the site, you can access the form T2152, fill it, sign digitally, and save or print for your records or submission. The hassle that comes with the traditional method of form-filling is eliminated because of PDFliner's efficient and easy-to-use platform.

Who needs the T2152 form?

Any Canadian taxpayer planning to finance their education or their spouse's education via the Lifelong Learning Plan (LLP) can use the t2152 form. Withdrawing from RRSPs to finance education falls under a specific regulation by the CRA, and correct paperwork must be filed to avoid taxing on the withdrawn amount. Therefore, the form offers an avenue for taxpayers to request for deferment of tax repayment stipulated by the LLP.

How to Fill Out the Form T2152

Here is a detailed step-by-step guide to fill out the Form T2152 for a labour-sponsored venture capital corporation (LSVCC):

1. Enter the name of the LSVCC in the designated space at the top of the form.
2. Provide the LSVCC's account number and the complete address including the postal code.
3. Specify the tax year for the LSVCC by entering the start and end dates (Year, Month, Day).
4. If the mailing address differs from the address provided above, include the alternate mailing details.
5. List the name of the sponsoring eligible labour body associated with the LSVCC and its address.
6. Include the name and telephone number of the contact person for the LSVCC.
7. Under the section for Class A shares issued and outstanding, record the balance at the start of the year and add any shares issued during the year. Then, subtract any shares redeemed during the year to determine the balance at the end of the year.
8. In the investments section, detail the total cost of eligible investments, breaking it down by shares, debt obligations, guarantees, and options or rights to acquire a share. Include detailed information for each investment as required on the attached schedule.
9. For reserves, specify amounts for cash and bank deposits, debt obligations, and other eligible reserve categories. Total the cost of reserves at the end of the tax year.
10. In Section A, calculate the tax under subsection 204.82(1) if the total cost of eligible investments and reserves is less than 80% of the net consideration received for Class A shares. Enter the total consideration received, amounts returned to shareholders, and then calculate the net consideration, 80% of that amount, and the total reduction from the cost of investments and reserves. Deduct the reduction from the 80% amount to find any excess, calculate 20% of this excess, and note the tax payable.
11. If applicable, complete Section B to calculate penalties under paragraph 204.84(a) for shares issued when the corporation was a revoked corporation. Enter the number of shares issued and the consideration received, and calculate the penalty based on the consideration.
12. In Section C, for subscribed shares not issued within 180 days after the information return was issued, record the number of such shares and the consideration received. Calculate the penalty as equal to the consideration.
13. On the last page, certify the form by entering the name and position of the authorized officer, and sign and date the form to validate the information provided.
14. Finally, if there is any balance owing or a refund due, calculate this by summing the taxes and penalties payable, subtracting any payments made, and enter the balance or refund amount at the bottom of the form.