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Scientific Research and Experimental Development > SR&ED forms and publications > Clickable Form T661 (11)

Clickable Form T661 (11) - Part 3 - Calculation of SR&ED expenditures

Table of Contents

For a detailed description about a specific line number in Part 3, click on the applicable area of the T661 Form below:

Part 3 - Calculation of SR&ED Expenditures (lignes 160, 162, 300-470) Line 470 - Pool balance of deductible SR&ED expenditures to be carried forward to future years (line 455 minus 460) Line 460 - Deduction claimed in the year (Tip: Corporations should enter this amount on line 411 of schedule T2SCH1) Line 455 - Amount available for deduction (add lines 442 to 453)(enter positive amount only, include negative amount in income) Line 453 - amount of ITC recaptured in the prior year Line 452 - SR&ED expenditure pool transfer from amalgamation or wind-up prior year's pool balance of deductible SR&ED expenditures (from line 470 of prior year T661) (line 450) Line 445 - repayments of government and non-government assistance that previously reduced the SR&ED expenditure pool Line 442 - Subtotal (line 420 minus lines 429 to 440) Line 440 - sale of SR&ED capital assets and other deductions Line 435 - SR&ED ITCs applied and/or refunded in the prior year (see guide) Line 432 - non-government assistance for expenditures included on line 400 Line 431 -other government assistance for expenditures included on line 400 Line 429 - provincial government assistance for expenditures included on line 400 Line 420 -Amount from line 400 Line 400 - Total allowable SR&ED expenditures (add lines 380 and 390) Line 390 - Capital Expenditures (see guide for what qualifies for SR&ED)(Tip: These capital expenditures should not be included on schedule T2SCH8) Line 380 - Total current SR&ED expenditures (add lines 306 to 370; do not add line 315)(Tip: Corporations may need to adjust line 118 of schedule T2SCH1) Line 370 - Third-party payments (complete Form T1263*) Line 360 - Overhead and other expenditures (enter 0 if you use the proxy method) Line 355 - Primarily (more than 50% of the time but less than 90%) for SR&ED. (Enter 50% of lease costs if you use the proxy method or enter 0 if you use the traditional method) Line 350 - All or substantially all (90% of the time or more) for SR&ED Line 345 - Non-arm's length contracts Line 340 - Arm's length contracts Line 325 - Cost of materials transformed in performing SR&ED Line 320 - Cost of materials consumed in performing SR&ED Line 315 - Salary or wages incurred in the year but not paid within 180 days of the tax year end Line 310 - Salary or wages identified on line 315 in prior years that were paid in this tax year Line 309 - Specified employees for work performed outside Canada (subject to limitations - see guide) Line 307 - Employees other than specified employees for work performed outside Canada (subject to limitations - see guide) Line 306 - Subtotal (add lines 300 and 305) Line 305 - Specified employees for work performed in Canada Line 300 - Employees other than specified employees for work performed in Canada Line 162 - I choose to use the traditional method (Tip: Enter 0 on line 355. Complete line 360, and track any expenditure incurred for overhead) Line 160 - Line 160 - I elect to use the proxy method (Tip: Enter '0' on line 360. Complete Part 5 and you do not need to track any expenditure incurred for SR&ED overhead)

*Form T1263, Third-Party Payments for Scientific Research and Experimental Development (SR&ED)

Date Modified: 2011-04-30

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