TaxCycle 11.0.45396.0—T2 Update and 2021 Forms Module (revised)
This release rolls over the Forms module to 2021 and includes a major update to TaxCycle T2.
Get this version as an automatic update, a full download from our website or a free trial. (To deploy auto-update files from your network, see the Auto-Update Files page.)
We originally released these changes on November 9, 2021, as version 11.0.45329.0. Since then, we have added the following changes:
This TaxCycle T2 release extends the supported corporate tax year ends up to May 31, 2022.
Revised Schedules and Forms
- T2 Jacket, new line 352 on page 3
The CRA has assigned line 352 to the new field “Employer deduction for non-qualified securities” on page 3.
- T2SCH6 Summary of Dispositions of Capital Property
Added line 902 to Part 9 with respect to “Portion of the capital gain that is subject to a 100% inclusion rate per subsection 100(1) **".
- T2SCH7 Aggregate Investment Income and Income Eligible for the Small Business Deduction
Note 15 has been added to the Part 4 table column G1 description to inform the preparers that the number of days in a partnership cannot exceed 365 days.
- T2SCH388 Manitoba Film and Video Production Tax Credit
Added new line 575 Eligible salaries for services rendered by eligible Individuals.
- T2SCH430 British Columbia Shipbuilding and Ship Repair Industry Tax Credit
Added various review messages.
- T2SCH570 Ontario Regional Opportunities Investment Tax Credit
In a previous release, Schedule 570 was revised to reflect the temporary enhancement to the Regional Opportunities Investment Tax Credit as per the March 2021 Ontario budget. The CRA has now issued an official update to the form which has been revised accordingly.
- T2054 Election for a Capital Dividend Under Subsection 83(2)
Added new lines 150 and 160 to Part 2. Part 7 now has a new table for shareholder information.
- T183CORP Information Return for Corporations Filing Electronically
This form now has two pages. Page 2 contains Parts 3 and 4. See below for information on Recording E-signatures on T183CORP.
- T661 Scientific Research and Experimental Development (SR&ED) Expenditures Claim
The calculation of Part 5 column 858 of form T661 has been adjusted to reflect the 2022 maximum pensionable earnings under the Canada Pension Plan (CPP) for 2022 of $64,900 (up from $61,600 in 2021).
Minor Text Updates
The following schedules have received minor text updates.
- T2SCH3 Dividends Received, Taxable Dividends Paid, and Part IV Tax Calculation
- T2SCH4 Corporation Loss Continuity and Application
- T2SCH5 Tax Calculation Supplementary - Corporations
- T2SCH16 Patronage Dividend Deduction
- T2SCH31 Investment Tax Credit – Corporations
- T2SCH54 Low Rate Income Pool (LRIP) Calculation
- T2SCH89 Request for Capital Dividend Account Balance Verification
- T2SCH91 Information Concerning Claims for Treaty-Based Exemptions
- T2SCH384 Manitoba Paid Work Experience Tax Credit
- T2SCH389 Manitoba Book Publishing Tax Credit
- T2SCH411 Saskatchewan Corporation Tax Calculation
- T2SCH481 Nunavut Corporation Tax Calculation
- T2SCH564 Ontario Book Publishing Tax Credit
T2 Immediate Expensing of CCA
While we continue to wait for instructions from the Canada Revenue Agency (CRA) as it relates to Immediate Expensing of Depreciable Property for Corporation, you can read the news article we published in mid-September for an update.
Recording E-signatures on the T183CORP
The CRA has new requirements when collecting electronic signatures on T183CORP forms. The form must report the date and time the form was electronically signed. This information is then transmitted to the CRA through T2 EFILE.
If you use TaxFolder or DocuSign®, TaxCycle automatically records the date and time. However, if you use a different service for e-signatures, you must enter the date when the signature is confirmed before transmitting the return. To do this:
- In the Transmit sidebar, click the e-signature link to confirm receipt of the signature.
- TaxCycle automatically enters the current date and time using the 24-hour format.
- Adjust the date and time if required and click Confirm to save the date.
- The date and time are recorded in Part F of the T183CORP, and in the workflow and history of the TaxCycle file.
To learn more about the T183CORP, review our help topic T183CORP Form.
Note: This process is also available for the T183 in TaxCyle T1.
Alberta AT1 Changes
On page 2 of the AT1 jacket, new lines 095 and 096 have been added as on-screen only fields. These two new fields are not included in the printing process.
Alberta Finance requires that all AT1 returns include information about the tax preparer, and whether the tax preparer charges a fee to prepare the particular AT1 return.
- When box 095 is checked on the T2 Engagement form, box 096 is automatically completed with the preparer name or firm name.
- It begins by selecting the preparer's first and last name.
- If a firm name is entered, the firm name will replace the preparer first and last name.
- To use your own customized name, you can enter it in the AT1 forms field under the heading AT1 alternative preparer/firm name.
Other AT1 Changes
- AT1 Schedule 8 Alberta Political Contributions Tax Credit
- This schedule has been removed.
- AT1 Schedule 12 Alberta Income/Loss Reconciliation
- AT1 Schedule 29 Alberta Innovation Employment Grant
- Added new column 265 in the expenditure limit table.
- Total field of line 300 is also new.
- CGI worksheet AS29 table now has a column for the above-mentioned new column 265.
- AT1 Schedule 100 (AT1Exempt)
Rollover of TaxCycle Forms to 2021
The TaxCycle Forms allows you to create a 2021 forms collection. Please note the following:
- You can carry forward 2020 TaxCycle Forms files.
- You can create Forms files from other 2021 TaxCycle modules.
- The government forms are the 2021 versions of the forms.
- T2065—Determination of adjusted cost base of a partnership interest
- T2154—Designation of Forgiven Amount by the Debtor—Subsections 80(5) to 80(11)
- NR73—Determination of residency status (Leaving Canada)
- RC65—Marital Status Change
Contact and Authorized Table on the Info Worksheet
On the Info worksheet, the fields to enter the contact person and authorized person now appear as an expandable table. The table includes a column to set each person as either an authorized person, a contact person or both.
The details from this table and from the T1 Individual section on the Info worksheet, along with the preparer information from the Engagement worksheet, are pooled into a drop down list in the authorization of signer section of the applicable forms.
We've started work on implementing e-signature requests in TaxCycle Forms. Currently, you can use our email cover letter templates to send PDF versions of forms to your clients. However, the ability to request an e-signature through DocuSign® or TaxFolder will only be available in a future release.
Other Changes to TaxCycle Forms
- TaxCycle Forms now includes templates for labels, client letters, engagement letters and email cover letters.
- In the T1 Individual section of the Info worksheet, we have added an Email address field.
The Guaranteed Income Supplement (GIS) amounts have been updated to December 31, 2021.
New T1135 Manager
This release adds the new T1135 Manager to the top of the T1135 form in TaxCycle T1 2021. This section allows for splitting and sharing of foreign investments between spouses, while retaining the applied foreign exchange rates. (Previously, the exchange rates appeared in each of the seven tables in the detailed section of form.)
- When entering the amounts in the T1135 Manager table, choose which reporting method to use:
- Select Detailed to use the detailed reporting method and complete Part B of the form. If the total maximum cost of all specified foreign property is equal to or exceeds $250,000, TaxCycle automatically completes the appropriate table in Part B.
- Select Simplified to use the simplified reporting method and complete Part A of the form. With this option, you can enter the details in the T1135 Manager section and TaxCycle will transfer those details to Part A, providing the client is eligible for the simplified reporting method (if the total cost of all specified foreign property held at any time during the year exceeded $100,000, but was less than $250,000).
- If you choose not to enter amounts in the T1135 Manager table, you can still complete Part A manually using the simplified reporting method.
- Answer Yes to carry forward the names/descriptions and countries to the following year.
- Choose the Type of property in the first column to transfer the detail to the appropriate table within Part B.
- Enter the percent of Spouse share to share the details with the T1135 in the spouse’s return. All rows in the table are shared between the principal taxpayer and spouse. You can edit details in either return. However, amounts will only transfer to Part A or Part B if you enter a percent in the Spouse share column.
Shared Interest Rates
This release centralizes the prescribed rates so Interest and Penalties worksheets in all modules use the same list of rates. Rate tables in the worksheets now only show the date ranges applicable to each file, instead of all rates since 2012. Otherwise, these changes are not visible to the tax preparer.
Please note that existing files opened in this new version will remain unchanged. To update the tables to use the new rates, go the Home menu, click Form and select Clear.
- 2021 T1 CLetter and JLetter templates now mention that the T1032 has to be signed.
- 2021 T1 CLetter and JLetter templates changed the wording to “sale or disposition” of a principal residence.
- Cover letter emails: changed “any question and concerns” to “any questions and concerns” across all modules and years of returns.
- T2 returns, CO-17 transmission receipt now includes both the transmission number and the confirmation number.
- T2 Info worksheet, ITA 89(11) elections
In the Filing section of the Info worksheet, we've added three questions for the election under ITA 89(11) to keep track of elections made in a previous year or revoked in the current tax year or in a previous tax year.
- T2 Schedules 19, 29 and 30 now carry forward from Taxprep to TaxCycle.
- T2SCH1 Net Income (Loss) for Income Tax Purposes
To improve year over year comparison, prior year column fields have been added to “Other deductions” and “Other additions” sections.
- Xero billing export
- Added a Search field at the top of the select contact dialog box.
- Added support for sorting by contact last name.
- Included the email address and phone number in the list of the select contact dialog box.
- Included the email address and phone number(s) for individuals or contact persons when creating news contacts in Xero.
- T2 Billing Worksheet—Only the GST was being charged for tax return preparation because some services are not subject to PST in British Columbia. This has been corrected.
- T2SCH2 Part XIV – Additional Tax on Non-Resident Corporations—The calculation for line 201 (Cost amount immediately after the end of the year of depreciable property owned in Canada for gaining or producing income from a business carried on in Canada) has been corrected to match the UCC at the end of the year from Schedule 8 (Capital Cost Allowance (CCA)).
- T5013 Partnership Information Return—Resolved a customer-reported transmission error for the T1135, related to the software ID.