What Is T2 Schedule 7?
T2 Schedule 7 is used to report a corporation’s Aggregate Investment Income (AII). This includes certain types of passive income earned by a corporation, such as taxable capital gains, interest income, rental income, and portfolio dividends.
Is Schedule 7 Manually Filled Out in CloudTax?
No. Schedule 7 is not manually entered or selected in CloudTax.
Instead, it is:
Automatically generated when qualifying investment income exists
Populated based on other schedules and forms in the T2 return
Hidden if there is no aggregate investment income to report
This behaviour is intentional and aligns with how the CRA expects Schedule 7 to be prepared.
How Does Schedule 7 Get Its Numbers?
Schedule 7 pulls its data from other parts of the T2 return, primarily:
1. Schedule 125 – Income Statement Information
Investment income reported on Schedule 125 flows directly into Schedule 7. This may include:
Taxable capital gains
Interest income
Rental income
Portfolio dividends
If no qualifying investment income is reported on Schedule 125, Schedule 7 will not generate.
2. Schedule 6 – Capital Gains or Losses
Capital gains or losses entered on Schedule 6 first flow into Schedule 125. From there, they are picked up by Schedule 7 if applicable.
If a capital loss exists, it will only appear on Schedule 7 if it results in aggregate investment income that needs to be reported.
Why Can’t I See Schedule 7 in the Dropdown?
This is expected behaviour.
Schedule 7 will not appear in the schedule dropdown if:
There is no qualifying aggregate investment income
The investment income reported does not trigger Schedule 7 reporting
Even when Schedule 7 is not selectable, it may still exist in the background as an auto calculated schedule.
How Can You Review Schedule 7?
For transparency and review purposes, the Schedule 7 PDF is available in the “View PDF” section of the return.
This allows you to:
Review auto calculated values
Confirm CRA compliant calculations
Verify that Schedule 7 is handled correctly even when not visible as an editable schedule
Summary: Key Takeaways
Schedule 7 is auto calculated, not manually entered
It is generated only when qualifying aggregate investment income exists
Data flows from Schedule 6 → Schedule 125 → Schedule 7
The schedule may not appear in the dropdown if not required
The PDF is always available for review in View PDF when applicable
This design ensures accuracy, CRA compliance, and a simplified filing experience for both taxpayers and EFILERS.