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TaxCycle 11.2.47246.0—T2 Schedule 63

This update resolves issues found since the previous release.

To install this version immediately, download the full installer from our website or request a free trial. Once we enable the automatic update for this version, TaxCycle will prompt you to install it according to the priority set in your TaxCycle Options. (To deploy auto-update files from your network, see the Auto-Update Files page.)

Release Highlights

T2 Schedule 63, Return of Fuel Charge Proceeds to Farmers Tax Credit

According to CPA Canada’s announcement on June 13, 2022, the description for CRA’s Schedule 63 amount 1A should be revised to reflect total farming expenses for income tax purposes. Currently, amount 1A is calculated from Schedule 125 GIFI code 9898 which represents farming expenses for accounting purposes. We have notified the CRA about the error and are expecting a revised Schedule 63 in the future. Meanwhile, we have revised the calculation of amount 1A in Part 1 to exclude accounting amortization and provided lines for custom manual adjustments. 

As per Note 1 in Part 1, return of fuel charge proceeds to farmers tax credit must calculate only if the eligible expenses on line 100 is at least $25,000. However, TaxCycle was calculating the credit even when the eligible expenses were less than $25,000.

Based on the latest draft of CRA’s Schedule 63, we have revised the calculation of the relevant proportion rates (amounts 2H, 3H, 4H and 5H in each provincial section of Schedule 63) to be multiplied by 1 rather than 0.5 if either the total gross income from amount C (2C, 3C, 4C or 5C) or the total salaries and wages from F (2F, 3F, 4F or 5F) is NIL.

We also corrected an error in the calculation on Line 220, in Part 6.

Resolved Issues