Capital Dividend Account Calculator
Build a simplified running CDA balance before requesting CRA verification and filing a capital dividend election.
Enter the tax-free component, not the gross gain.
Available before election
$50,000Closing balance
$25,000Excess election
$0Estimated Part III tax
$0Proposed dividend fits this estimate
What this estimate includes
This planning estimate uses user-entered CDA components. It deliberately does not infer the tax-free portion from gross transactions because historical inclusion rates and transaction ordering can change the legal balance.
Use Schedule 89 or CRA account data to verify the balance immediately before the election, and file Form T2054 by the election due date.
Questions this calculator answers
What goes into a capital dividend account?
Common CDA components include the tax-free portion of net capital gains, certain life-insurance proceeds above policy ACB, and capital dividends received, less capital dividends paid.
Is a capital dividend taxable to a Canadian shareholder?
A valid capital dividend paid by a private corporation is generally received tax-free by a Canadian-resident shareholder.
When is Form T2054 due?
The capital dividend election is due when the dividend becomes payable, or when any part is paid if that happens first.
What happens if a CDA election is too high?
CRA generally imposes Part III tax equal to 60% of the excessive election, plus interest, unless an available alternative election is made with the required shareholder agreement.
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