If you repay more than the amount required
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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 2012. His LLP balance was $8,500. Alexander's repayment for 2012 was $850 ($8,500 ÷ 10). He made the repayment for 2012, 2013, and 2014. In 2015, he received an inheritance and decided to contribute $4,000 to his RRSPs and designate that amount as a repayment under the LLP for 2015. He calculates the amount he has to repay for 2016 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 |
|---|---|---|---|---|
| 2012 | $8,500 | $850 ($8,500 ÷ 10) |
$850 | $7,650 |
| 2013 | $7,650 | $850 ($7,650 ÷ 9) |
$850 | $6,800 |
| 2014 | $6,800 | $850 ($6,800 ÷ 8) |
$850 | $5,950 |
| 2015 | $5,950 | $850 ($5,950 ÷ 7) |
$4,000 | $1,950 |
| 2016 | $1,950 | $325 ($1,950 ÷ 6) |
$325 | $1,625 |
- Date modified:
- 2016-10-25