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News > TaxCycle version 6.0.30697.0—T2 and AT1 certification extended for corporate tax year ends up to May 31, 2017

TaxCycle version 6.0.30697.0—T2 and AT1 certification extended for corporate tax year ends up to May 31, 2017


This major TaxCycle release extends the certified filing taxation year-end for T2 and Alberta AT1 corporate income tax returns to May 31, 2017. This update comes with many new and updated T2 schedules. It also contains smaller revisions to corporate linking and slips modules based on feedback we have received over the past couple of weeks.

This release is available as an automatic update. It is also available as a full download from our website and a free trial

 

Who should install this release?

This release contains major T2 updates. Anyone who installed the prior version should also install this release to keep their software up-to-date.

Release Highlights

  • T2 and AT1 certified for corporate tax year ends up to May 31, 2017
  • Corporate linking
  • Twelve new T2 forms
  • Various updated T2 schedules
  • New class 14.1 added to support the repealed Eligible Capital Property rules as of Jan. 1, 2017
  • T2 T183 transmitter name changes
  • Special characters in T4/T4A, T5, T5018 and NR4 transmitter fields
  • Preparer name on T1 and TP1 forms
  • Right-click to copy taxpayer details in the Client Manager
  • DT Max® carry forward status update

TaxCycle T2 filing certification extended to May 31, 2017

This release extends the certified filing taxation year-end to May 31, 2017 for T2 and Alberta Corporate Income tax returns. The earliest supported taxation year start date is January 1, 2011.

Corporate linking

In response to customer requests, we added corporate linking to TaxCycle T2 in October. If you missed it, read all about it in the full release notes for version 6.0.30339.0. We hope you will give it a try and further appreciate the other enhancements we’ve made to this feature since it was first released. A help topic is also available.

New T2 schedules

Federal
  • Schedule 18: Federal and provincial or territorial capital gains refund
  • Schedule 34: Taxable capital employed in Canada – financial institutions
  • Schedule 38: Part VI tax on capital of financial institutions
  • Schedule 39: Agreement among related financial institutions – Part VI tax
  • Schedule 89: Request for Capital Dividend Account Balance Verification (must be paper-filed)
British Columbia
  • Schedule 430: British Columbia shipbuilding and ship repair industry tax credit
Manitoba
  • Schedule 387: Manitoba small business venture capital tax credit
  • Schedule 390: Manitoba cooperative development tax credit
  • Schedule 391: Manitoba neighbourhoods alive! tax credit
  • Schedule 392: Manitoba Data Processing Investment Tax Credits
  • Schedule 393: Manitoba nutrient management tax credit
  • Schedule 394: Manitoba rental housing construction tax credit
Saskatchewan
  • Schedule 404: Saskatchewan manufacturing and processing profits tax reduction

Updated T2 schedules

  • T2 jacket:
    • Removed line 312 on page 3 (Gifts to Canada, a province, or a territory from schedule 2).
    • Added line G and H on page 4, and the specified corporate income table at the bottom of page 4 to accommodate Bill C-29 with respect to the changing rule to preclude multiplication of small business deduction limit involving designated members of a partnership.
    • The section for Refundable portion of Part I tax on page 6 was revised to reflect the latest changes.
  • Schedule 1:
    • Removed lines 205, from 600 to 604, from 290 to 294, 305, from 700 to 704, from 390 to 394.
    • Added new lines 248, 249, 605, 295, 296, 348, 349, 705 and 395.
  • Schedule 2
  • Schedule 3
  • Schedule 5
  • Schedule 7: In Part 3, new columns E1 and E2 have been added to address Specified Partnership Income rule as announced in the March 2016 federal budget.
  • Schedule 8: New CCA class 14.1 (see below)
  • Schedule 17
  • Schedule 32 (T661)
  • Schedule 33: Added prior year columns
  • Schedule 60 (Part 2 of T661)
  • Schedule 61 (T1145)
  • Schedule 62 (T1146)
  • Schedule 421 (BC)
  • Schedule 422 / T1196 (BC)
  • Schedule 508 (ON)
  • Schedule 554 (ON)
  • Schedule 566 (ON)
  • S1Inducement

New class 14.1 added to support the repealed  Eligible Capital Property rules as of Jan. 1, 2017

The eligible capital property (ECP) rules are repealed and replaced by new Class 14.1 to the Income Tax Regulations (the Regulations), effective on January 1, 2017. Property that was ECP will be depreciable property and expenditures and receipts that were accounted for under the ECP rules will be accounted for under the rules for depreciable property and capital property. Thus, new class 14.1 has been added to Schedule 8 and S8Asset Worksheet.

Assets in this new Class 14.1 are allowed to be depreciated at a 5% declining balance rate. Also, for taxation years that end before 2027, an additional 2% rate is allowed (making it a total of 7% CCA rate) in respect of that portion of the undepreciated capital cost of the class that relates to expenditures incurred before January 1, 2017. If the total CCA calculated at 7% rate is less than $500, the CCA claim may be increased to allow $500 total capital cost allowance for the class. For further information about the new class 14.1, please refer to: http://www.budget.gc.ca/2016/docs/tm-mf/notes-en.html

In TaxCycle, when a corporation’s taxation year ends after 2016, TaxCycle triggers a review message in S10Worksheet (S10WS) to transfer the CEC balance to Schedule 8 and S8AssetWorksheet as shown below. In order to initiate the transfer, simply click on the Transfer to S8 link in the Quick Fix message:

T2 T183 transmitter name

In the Engagement form, if a Firm (Organizational legal name) name exists, TaxCycle uses this name in the T2 T183 Part 4 transmitter name field. Otherwise, the individual's name in the Engagement form (First name, Last name) is used for T183.

T2 variance message on line 425

If you open a locked T2 return in this release, TaxCycle will detect a variance on line 425 of the T2 jacket. You can safely ignore this message.

This message is due to a CRA-requested form/calculation change relating to line 425 on the T2 jacket. Line related to Reduced business limit changed from line F to line H. To address this change, we added a new/different index in the code to support these changes. It is this new index that triggers a variance message. 

Special characters in T4/T4A, T5, T5018 and NR4 transmitter fields

You can now use special characters in the transmitter fields. The list of special characters consists of:

  • ampersand &
  • apostrophe '
  • period .
  • hyphen -

Preparer name on T1 and TP1 forms

It was brought to our attention through a recent post on our Community that we were not displaying the preparer name consistently across forms where it appears. As of this release, TaxCycle will display the Firm (organization legal name) as it appears on the Engagement form. If this is not available, it will display the first name, last name and designation of the preparer, if entered. This affects the following forms:

  • Federal forms: T1 jacket page 4 and line 490, T183 Part G, and T1ADJ
  • Québec forms: TP-1000, TP1.R and MR-69

We are also considering adding an option to specify a particular name for certain of these, to allow for cases where our current logic doesn't work for your practice. Stay tuned for more details is a future release.

Copy SIN/BNRight-click copy taxpayer details in the Client Manager

This release adds the ability to copy details about a taxpayer from the Client Manager. (Thank you those on the Community who suggested it.)

In the preview for a taxpayer or file, right click on any of the following information and select Copy.

  • SIN (without spaces)
  • Business Number (BN) (without spaces)
  • phone number
  • email address
  • date of birth

DT Max® carry forward status update

Work on the DT Max carry forward for T1 returns continues. It will be completed for our next major release, scheduled for later in December.

How to get this update

This release is available as an automatic update. It is also available as a full download from our website and a free trial

Who should install this release?

This release contains major T2 updates. Anyone who installed the prior version should also install this release to keep their software up-to-date.

 

 


 

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