If you repay more than the amount required
Disclaimer
We do not guarantee the accuracy of this copy of the CRA website.
Scraped Page Content
If you repay more than the amount required
If you repay and designate more than you have to repay for a year, the amount you have to repay in each of the following years will be less. The LLP Statement of Account we send with your notice of assessment or notice of reassessment takes into account any additional payments you make and tells you how much you have to repay for the next year. If you want to calculate the amount you have to repay for the next year, divide your LLP balance by the number of years left in your repayment period.
Example
Alexander's repayment period began in 2017. His LLP balance was $8,500. Alexander's repayment for 2017 was $850 ($8,500 ÷ 10). He made the repayment for 2017, 2018 and 2019. In 2020, he received an inheritance and decided to contribute $4,000 to his RRSPs and designate that amount as a repayment under the LLP for 2020. He calculates the amount he has to repay for 2021 using the following chart:
| Year | LLP balance at the beginning of the year | Amount Alexander has to repay for the year | Amount Alexander designates as a repayment for the year | LLP balance for the following year |
|---|---|---|---|---|
| 2017 | $8,500 | $850 ($8,500 ÷ 10) |
$850 | $7,650 |
| 2018 | $7,650 | $850 ($7,650 ÷ 9) |
$850 | $6,800 |
| 2019 | $6,800 | $850 ($6,800 ÷ 8) |
$850 | $5,950 |
| 2020 | $5,950 | $850 ($5,950 ÷ 7) |
$4,000 | $1,950 |
| 2021 | $1,950 | $325 ($1,950 ÷ 6) |
$325 | $1,625 |
- Date modified:
- 2021-12-13