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News > TaxCycle version 6.0.30853.0—Template Editor enhancements, 2016 T1/TP1 form and calculation updates, carry forwards

TaxCycle version 6.0.30853.0—Template Editor enhancements, 2016 T1/TP1 form and calculation updates, carry forwards


This major TaxCycle release includes enhancements to the Template Editor, final carry forwards, T1 forms with updated rates and fields, and many other changes.

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

If you decide to manually install TaxCycle, you may see a Windows® SmartScreen message that says: TaxCycleSetup.exe is not commonly downloaded and could harm your computer. This occurs due to an updated TaxCycle certificate. Simply click the Run anyway button to proceed with the installation of the setup file.

Who should install this release?

This release contains major updates to TaxCycle T1, carry forwards and the Template Editor. We recommend all customers install this release.

Release Highlights

  • Template Editor enhancements
  • Changes to built-in templates
  • T1 2016 form updates
  • Québec TP1 2016 form updates
  • New—Reporting requirement for sale of principal residence
  • Carry forward updates
  • TaxCycle T3010 2016 update (T3010 jacket, GST66, and new RC7066)
  • Improved support for filing a first-year T3 without a Trust Account Number
  • Resolved—Known issue: T2 claim for non-capital loss of previous years may calculate an incorrect amount
  • Reminder—Important dates for slips filing
  • Customer requests
  • Upcoming major releases

Template Editor enhancements

This release includes major enhancements to the Template Editor. These are both visible to you, and in the way the template code functions. If you regularly use the Template Editor, please review the changes below and the changes to the templates as well.

  • Addition of a sidebar to allow you to collapse and expand the sidebar. This has three tabs: Templates, Properties and Preview.
  • Search bar at the top of the list of templates to quickly narrow the results by template name.
  • Redesign of the list of templates to show more in the list. The Clone button is still on the right of each template, but you must now right-click to delete a template from the list.
  • Within each module folder, French templates appear at the bottom of the list when you work in English and vice-versa if you work in French.
  • Properties sidebar replaces the blue properties space that used to appear at the top of the code view. It now contains options for specifying a culture (meaning the language and the format of numbers and dates) for a template.
  • A new drop-down menu was added to the Properties to allow you to select the built-in template that a custom template replaces. Previously, you could only make a template unique.
  • The module/year to which a template applies now shows as a link in the Properties sidebar. Click this link to select the modules to which it applies. (No more typing T1TY2016;T1TY2015; if you want to apply a template to more than one year.)
  • A new type of templates, called snippets, has been added to allow you to insert a template within a template. These are now used to insert the letterhead and closing signature in all built-in letter and invoice templates. Read the section on Letterhead and closing snippets below to find out how to convert your existing templates. Learn more about snippets in general in documentation.
  • All 2016 T1 templates are now available in French as well as English. They work like the forms in the rest of TaxCycle: you can switch between English and French using the En or Fr button in the blue bar at the bottom of the window, and they change in the print sets based on the taxpayer's language. When creating a template, you now must assign a culture for the template. This adjusts both the language and the format of dates and currency.
  • The Preview tab allows you to choose between taxpayers in currently open tax returns for previewing your template changes. These names used to appear along the bottom of the Template Editor window.
  • New view options allow you to view the code and preview of templates side-by-side or top-and-bottom.
  • When you click on the New button, the lists of possible modules appears in a dialog box so that it is easier to check the module(s) you want.
  • Logo and signature images inserted from Options now size correctly when you customize a template.
Letterhead and closing snippets

Many tax preparers have only been modifying our built-in templates to change the look of the letterhead. The drawback has been that as soon as you modify a template for this purpose, you no longer receive any updates we make to the built-in templates. In order to allow you to customize the letterhead and the closing signature of all templates and still get the latest body from the built-in templates, we have created the new concept of snippets. Snippets allow you to insert a piece of template code into another template.

We have created a Letterhead snippet and a Closing snippet for all built-in letter/invoice templates. All built-in templates now use these snippets to insert the letterhead and signature in each template, so you don't have to customize each template. Instead, you can just customize the built-in snippets.

If you have previously edited the templates just to change the Letterhead or Closing, we recommend you go ahead and clone the built-in snippets and customize them to your liking. Then, you can delete your full-template customization. (You may want to back up your templates folder first before you do this.)

New Template Editor documentation

We have also completely refreshed the documentation on the Template Editor. It includes information on the new features, along with updated information on using field codes and conditions in your templates. Please read the new documentation section to get started.

Template Editor video

On the 14th, we presented a webinar on the Template Editor. It reviews the changes included in this release, along with getting started with the editor. Watch this video to learn more.

Changes to built-in templates

With this major update to the Template Editor, we have enhanced and modified most built-in templates. Please review the list below.

All modules, all applicable templates, all years
  • Changed all letterheads to come from a snippet template. (Learn more about snippets.)
  • Changed the signature to come from a snippet template. (Learn more about snippets.)
  • Added "Care of" address information to the recipient address.
  • Removed the number sign after the RR in all addresses to better match Canada Post addressing guidelines.
New 2016 T1 French templates

All 2016 T1 templates are now available in French as well as English. They work like the forms in the rest of TaxCycle: you can switch between English and French using the En or Fr button in the blue bar at the bottom of the window, and they change in the print sets based on the taxpayer's language.

T1 Client Letter (CLetter) and Joint Client Letter (JLetter)
  • 2016—Added section for reporting the sale of a principal residence.
  • 2015 and 2016—Added content for Pre-authorized Debit (PAD) to the section on amount owing.
  • All years—Expanded RRSP section to include more details about overcontributions.
  • 2013 to 2016—Added a section for eligibility to apply for the Guaranteed Income Supplement (GIS).
2016 T1 Pre-Season Letters (PreSeason/JPreSeason) and 2015 Post-Season Letter (PostSeason)
  • Added section for reporting the sale of a principal residence to the letter and the checklist.
T3 Client Letter (CLetter)
  • Added a Re: line with what the letter is regarding.
  • Added a section on foreign property.
T5013 Client Letter (CLetter)
  • Moved the date of the letter above the recipient address.
  • Corrected the address field code so that it works.

2016 T1 form updates

This release updates the forms and calculations for 2016 T1. All forms will still appear with the Preview watermark until they receive EFILE certification in the new year.

New form
  • Schedule 12—Home accessibility expenses
Updated forms

The following forms have updated cosmetic and calculation changes:

Federal

  • Schedule 2 (S2)
  • Schedule 3 (S3)
  • Schedule 4 (S4)
  • Schedule 5 (S5)
  • Schedule 6 (S6)
  • Schedule 7 (S7)
  • Schedule 10 (S10)
  • Schedule 11 (S11)
  • Schedule 13 (S13)

Non-resident

  • Schedule A (SA)
  • Schedule B (SB)
  • Schedule C (SC)
  • Schedule D (SD), T1248
  • NRWS (Other Credits)
  • T1159

Worksheets

  • Student Loan Interests
  • Support Payments

Slips

  • T4A-RCA
  • T4E
  • T4RIF
  • T4RSP
  • T5007

Deductions

  • T746
  • T2205
  • RC267
  • RC269

Tax and credits

  • T1170
  • T1172
  • T1206

Filing

  • T1132
  • T3012A
  • T1-OVP
  • T1261

Provincial

  • Alberta: AB428, ABWS (Other Credits), ABS2, ABS11, T89
  • British Columbia: BCWS (Other Credits), BCS2, BCS11, BCS12
  • Manitoba: MBS2, MBS11
  • New Brunswick: NBS2, NBS11, NBS12
  • Newfoundland and Labrador: NL428, NLS2, NLS11
  • Nova Scotia: NSS2, NSS11
  • Northwest Territories: NT428, NTS2, NTS11
  • Nunavut: NU428, NUS2, NUS11, NU479
  • Ontario: ONS2, ONS11, ONS12, ON479, ONBEN
  • Prince Edward Island: PES2, PES11
  • Saskatchewan: SK428, SKS2, SKS11
  • Yukon: YT432, YTS2, YTS11, YT479 ,T1232

Deleted forms

The following forms have been removed since 2015:

  • Schedule 1A (S1A)—Family Tax Cut
  • T626—Overseas employment tax credit
Moved to TaxCycle Forms module
  • T1141
  • T1142

Québec 2016 TP1 form updates

This release updates the forms and calculations for 2016 TP1. All forms will still appear with the Preview watermark until they receive Revenu Québec paper authorization in the new year.

TP1 jacket additions and modifications
  • New—Line 297, deduction for forest workers (code 21)
  • New—Line 390.1 for volunteer firefighters
  • Line 391, Tax credit for workers 64 or older. Age changed from 65 to 64.
  • New—Line 460, Tax shield (for Bouclier fiscal)
  • Line 415, Dividend tax credit. Rate changed from 8.319% to 8.2485% for ordinary dividends. Rate for eligible dividends remain the same at 16.422%.
New forms for 2016
  • TP-1029.RV, RénoVert Tax Credit. Affects lines 461 and 462 (code 32). Replaces TP-1029.LR.
  • Coming in the next release—TP-1029.BF Bouclier (new line 460 on jacket). To compensate for possible loss or reduction of work premium and increase in additional contribution to child care. Refundable credit based on 2015 and 2016 income.

Modified forms (major changes)

  • Schedule C
  • Schedule D
  • Schedule I
  • Schedule K
  • Schedule P
  • Schedule R
  • TP.1029.TM
  • Schedule V and line 395 of the TP1 jacket. Removed the 75% limitation against net income to calculate the allowable donation credit. This limit still remains for the T1.
Deleted forms and lines
  • Relevé 17. Affects line 297 (code 15).
  • TP-1029.LR, LogiRénov home renovation tax credit. Affects lines 461 and 462 (code 27). Replaced by TP-1029.RV.
  • Line 297 no longer includes the deduction for foreign specialists (code 18).

Reporting requirement for sale of principal residence

On October 3, 2016, the Government announced an administrative change to Canada Revenue Agency's reporting requirements for the sale of a principal residence.

Starting with the 2016 tax year, taxpayers will be required to report basic information (date of acquisition, proceeds of disposition and description of the property) on their income tax and benefit return when they sell their principal residence in order to claim the full principal residence exemption.

There are significant penalties for not reporting this sale. Please see http://www.cra-arc.gc.ca/gncy/bdgt/2016/qa11-eng.html for details.

In TaxCycle T1, we have made the following changes to support this requirement:

  1. On the Info worksheet, in the Filing section, there is a new question asking whether the taxpayer sold their home in 2016 and will be claiming the principal residence exemption. This question has a critical review message associated with it, which you cannot sign off or hide. This is similar to the treatment of the foreign property question.
  2. If you answer Yes to this question, it triggers review messages in a new Principal residence section on page 3 of the Schedule 3 (S3).
  3. In the section on the S3, you must choose one of three options to designate the property as principal residence for all years owned, some years owned, or a combination thereof. Depending on the selection on the S3, more review messages appear, reminding you to complete the T2091 if required.
  4. In the table below this section, enter the details of all designated properties. This table expands as required to accommodate more properties.
  5. New sections on the sale of a principal residence in the 2015 PostSeason and the 2016 PreSeason/JPreSeason have been added to help you gather this information from your clients.
  6. A new section in the 2016 CLetter and JLetter informs the client when a principal residence designation has been made.

Principal residence questions in TaxCycle T1

Carry forward updates

All T1/TP1 carry forwards are ready for use. This includes TaxCycle, Intuit® ProFile®, Taxprep®, Cantax®, VisualTax™ and DT Max®.

We continue work on the DT Max carry forward for T1. However, the remaining changes are for non-required fields and descriptions. Income statements, UCC, CCA, pools, dependants and other critical amounts all carry forward. Carry forward from DT Max® T2 will come in the new year. Remember, there are special carry forward instructions when coming from DT Max®. See instructions.

You can now carry forward your 2015 returns to 2016. Please review our carry forward documentation to learn how to carry forward from your prior software. The video below shows you how to carry forward returns in TaxCycle.

TaxCycle T3010 2016 update

  • T3010 jacket updated to support the latest CRA changes.
  • GST66 changed to a multi-copy form.
  • RC7066-SCH added. Provincial Schedule—GST/HST Public Service Bodies' Rebate. There is always one corresponding RC7066 form for each GST66 form.
  • GST66 now contains a Yes/No question in part B to indicate whether the period covered by the application should flow from the T3010 jacket, or whether it will be entered directly on the GST66 form.

Filing a first-year T3 return without a Trust Account Number

You can file the first T3 return for an estate without a Trust Account Number. The Trust Account Number field on page 1 of the T3RET remains blank when submitting to the CRA. (See http://www.cra-arc.gc.ca/tx/trsts/t3pp/pplytrstnmbr-eng.html for the CRA guidelines.) We have changed TaxCycle to help you address these situations.

To prepare a T3 return in TaxCycle without a Trust Account Number:

  1. Enter all zeros in the Trust Account Number field on the Info worksheet.
  2. Or, click the link in the Quick Fix message to insert a blank.
  3. When you print T3RET for submission to the CRA, TaxCycle will leave the Trust Account Number field on the T3RET blank.
  4. When printing or transmitting T3 slips, TaxCycle will print and transmit the all zero Trust Account Number in box 14, as required by the CRA. (See http://www.cra-arc.gc.ca/tx/trsts/t3slp/cmpltng/bx/nstrctns-eng.html#bx14)

Use the Quick Fix message to enter all zeros for a trust account number

Customer requests

We work hard to address customer requests for enhancements and reported issues. Many of the major items listed in these release notes are a result of requests from our customers. Here's a list of smaller items that we have addressed in this release:

  • T3—T776 end date was always calculating to Dec. 31. Now, a graduated rate estate (GRE) with a non-Dec. 31 year-end sets the date to match the year-end.
  • T3—ON T3A no longer shows the carryback loss suggestion if it is the first year of filing.
  • T1—A new review message appears when a foreign tax credit (FTC) row from the US exceeds 15% of income plus $1. This is to help prevent reassessment to exclude tax in excess of 15% because the tax treaty with the US (our most common source of FTCs) states that withholding on dividends should be 15%. (Foreign tax paid in excess of 15% of foreign investment income may be eligible to a deduction under subsection 20(11). However, the amount of tax paid must not exceed any withholding tax limit established in the tax treaty with the foreign country from which the income was paid.)
  • T1—Reminder added to the Client Letter (Cletter) and Joint Client Letter (JLetter) regarding applying for the Guaranteed Income Supplement (GIS)
  • T1—Split out the AMT specific amount in 2- and 5-year summaries for easier client review of those amounts.
  • T3010—Including the RC7066. (Suggestion from our online community.)
  • T3010—Making GST66 a multi-copy form. (Suggestion from our online community.)
  • Slips modules—Adding identification of when printing slips to more easily identify recipient copy from filing copy.
  • Template Editor—When you click on the New button, the list of possible modules appears in a dialog box so that it is easier to check the module(s) you want.
  • Template Editor—Logo and signature images inserted from Options no longer resize when you customize a template. If you resize the image, it will be saved as a new copy in your Templates folder.

Resolved—Known issue: T2 claim for non-capital loss of previous years may calculate an incorrect amount

Reminder—Important dates for slips filing

Reminder, the slips filing system is closed betweenDecember 19, 2016 and January 9, 2017.

The new XML specifications for all information return types are now available for the 2017 filing season which starts on January 09, 2017. For information on Filing Information Returns Electronically, view the CRA's website.

First-time filers should get their Web Access Code (WAC) without delay. Information about this is available here. You can also call the CRA help desk at 1-877-322-7849 for assistance. To learn more slips filing, read our help topic.

Upcoming major releases

Timing and contents subject to change:

  • Early January: Slips update
  • Late January/early February: T1/TP1 EFILE certification, updated forms and calculations.

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.

If you decide to manually install TaxCycle, you may see a Windows® SmartScreen message that says: TaxCycleSetup.exe is not commonly downloaded and could harm your computer. This occurs due to an updated TaxCycle certificate. Simply click the Run anyway button to proceed with the installation of the setup file.

Who should install this release?

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


 

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