TaxCycle Version 8.1.34887.0—2019 T4/T4A and T5

This release rolls over the T4/T4A and T5 slips modules to 2019 for early data entry, updates the accelerated CCA calculations in TaxCycle T3, provides a new T1229 form in TaxCycle T1, and allows Tax Data Download (TDD) from Revenu Québec.

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.)

Patch to version 8.1.34881.0

On March 18, 2019, we released version 8.1.34881.0 with all the enhancements listed below. It contained an issue with template rendering.

On March 20, 2019, we released a patch to correct this issue. This patch also includes the following changes:

  • T1—The T1159 form has been added to the Pricing options so that it can be charged for on the Billing worksheet and client invoices.
  • T1—A new suggestion was added to TaxCycle T1 to notify the preparer when Box 18 has been completed on the T4A(OAS) and taxpayer is less than 65 years old.
  • T1—New review messages have been added to alert preparers when expiring donations are available to claim in order to reduce federal or provincial tax.
  • T2—An issue with deleting and re-adding related corporations on the corporate group information (CGI) worksheet has been resolved.
  • Forms—The Preview watermark has been removed from the T2060 Schedule A in the TaxCycle Forms module.

Release highlights

Rollover of T4/T4A and T5 modules to 2019

The new modules for TaxCycle T4/T4A and TaxCycle T5 allow you to begin data entry for 2019 slips and related Québec relevés. Please note the following:

  • You can carry forward T4/T4A and T5 files from TaxCycle. Carryfowards from other software are not yet available.
  • You can use these modules to begin data entry earlier in the year.
  • The government forms are the 2018 forms updated to include 2019 indexed amounts and budget changes announced or estimated based on the information we have at this time. A review message appears on the year-end date field and in a bulletin at the top of the forms to remind you of this.
  • These modules permit CRA Internet File Transfer (XML) and transmission of relevés to Revenu Québec.

Accelerated CCA calculations for T3 and TP-646

This release updates the capital cost allowance (CCA) calculations in TaxCycle T3/TP-646 to support the new CCA measures. You will notice the changes to the calculations on all the asset manager worksheets (such as T2125Asset, etc.). These are very similar to those in TaxCycle T1/TP1.

To learn how Accelerated CCA is calculated for the affected classes, please read the Accelerated CCA help topic, specifically the section on T1/TP1 and T3/TP-646: Calculation of Accelerated CCA on the T1 Asset Managers.

Updated T1229 in TaxCycle T1

The T1229 Statement of Resource Expenses and Depletion Allowance in TaxCycle T1 has been updated to a new version released last week by the CRA. This form contains major changes to support the accelerated CCA calculation included in the Accelerated Investment Incentive (AII). If you have already filled out this form, the data will be converted to the new form when you install this release.

New! Québec Tax Data Download (TDD)

You can now access Québec Tax Data Download (TDD) from TaxCycle to download tax information for individuals directly from Revenu Québec. This includes RL slips that have been filed with Revenu Québec and other data. This download process is similar to that for the Canada Revenue Agency's Auto-fill my return (AFR), and you can use both of them together.

To download tax information for a client, you must:

  • Have a Revenu Québec NetFile Number and Access Code, and enter it into TaxCycle options.
  • Obtain authorization from your client. This is done either by having them complete and file the MR-69 Authorization to Communicate Information or Power of Attorney form, or by obtaining the client's Download code.

For full instructions, read the Québec Tax Data Download (TDD) help topic. Or, to quick start a download, follow these steps:

  1. Create or open a T1/TP1 tax return in TaxCycle. Enter at minimum the taxpayer's name and social insurance number (SIN) for each individual in the file—principal taxpayer, spouse, dependant(s)—and set the province of residence on the Info worksheet to Québec.
  2. Make sure you have authorization to represent each taxpayer by ensuring you have a signed MR-69 already on file with Revenu Québec, or that you have entered the taxpayer's Download code in the Québec TP1 section on the Info worksheet.
  3. Go to the Data menu and click on Tax Data Download.
  4. Select the clients for whom you want to download information and click Next to connect to Revenu Québec and begin the data download.
  5. Once the download completes, you will see a summary of what is available to import for each taxpayer. This process is similar to the one used for Auto-fill my return (AFR) from the CRA where TaxCycle attempts to match the downloaded data with existing forms and slips in the return.
  6. Upon importing, TaxCycle inserts the TDD values into the Amount column on slips, when the field is not already completed based on the data in the federal slip. Otherwise, it puts the data into the RevQC TDD column on the RL slips.
  7. The Tax Data Download (TDD) worksheet summarizes information downloaded from Revenu Québec that does not match to a particular slip.

TP1 forms: TP-726.7 and TP-752.0.0.6

This release adds the final versions of the following Québec forms:

  • TP-726.7 Capital Gains Deduction on Qualified Property
  • Customer Request TP-752.0.0.6 Adjustment for Income Replacement Indemnities Received from a Public Compensation Plan Outside Québec

T5013 updates

This release includes the following updates to TaxCycle T5013:

  • Customer Request The units fields on the Allocation worksheet now allow four decimal places. Previously, they only permitted two decimal places. This includes the ability to carry forward opening balances with units at four decimals places from Taxprep® and ProFile®.
  • A new check box on the Info worksheet allows you to choose Use T5013 ACB amounts for RL-15 slips. TaxCycle will then copy the ACB balances from the T5013Partner to the RL15Partner.
  • Customer Reported The Adjusted Cost Base (ACB) opening balance calculation for limited partnerships has been corrected. When it is negative, the ACB opening for the at-risk amount (ARA) becomes NIL, and a review message now triggers to remind you to record the capital gain.
  • The calculation of Box 30 – Capital Gains on the T5013 has been corrected.
  • Customer Reported The calculation of Allocation of Net Income to Partners at Line 220 on Schedule 50 was corrected for Limited Liability Partnerships.
  • Customer Reported Line 206 on the T5013FIN is now calculated to Yes when amounts are entered on either the Schedule 6 (S6) or Schedule 6 worksheet (S6W).

Customer requests

  • T1—Boxes 10, 20, and 30 on the T5013 data entry slip now calculate automatically.
  • T1—The Joint and Family invoices now show the tax rate in the combined balance. This change affects Joint and Family invoice templates going back to 2012, in both English and French, where available.
  • TP1—On the RPP worksheet, when Québec applies, the layout changes to display two columns—one for federal and one for Québec—to handle the annual limit difference. Prior to 1990, the limit was $3500 for federal and $5500 for Québec. This update allows for calculating the correct past-service contribution deduction for TP1 returns.
  • TP1—In the RL-1 section on the T4A slip, boxes D, J, D-2, D-3, 201 and 211 were added. The D boxes are linked to boxes 32, 126 and 162 on the T4A, and feed into the RPP worksheet. The other boxes were missing prior to this release. Box J is added to Québec medical expenses; box 201 reduces the amount of child care expenses eligible to the credit on Schedule C; line 211 is used in the calculation of the Deduction for workers, line 201 of TP1.
  • TP1—On the Medical worksheet, limitation F has been added to allow data entry of expenses only allowed as a credit in Québec, such as naturopath and osteopath. When limitation F is used, the expense does not calculate into the federal expense total. Instead, it is added in at line 2 of the Québec section of the Medical worksheet.

Resolved issues

  • T1—The province of residence in Closing Balance column of the Tuition section on the Carry forward worksheet (Carry) is now automatically completed, triggering a correct transfer of the spouse's unused provincial tuition amount to Schedule 11. This resolves the related known issue.
  • T1 and T3—For any additions or dispositions that have a personal use percentage, there may have been an issue with the application of the disposition against any additions in that class. The personal use percentage may have been ignored, or applied to a disposition that did not require it. This has been resolved.