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T2
574 Alberta credits and deductions / Crédits et déductions de l'Alberta
Is DT Max taking account of the changes announced in Special Notice Vol. 5 No. 58: Accelerated Job Creation Tax Cut regarding the general income tax rate and the small business deduction?On June 30, 2020, the Alberta Government announced in Special Notice Vol. 5 No. 58: Accelerated Job Creation Tax Cut, the general income tax rate on business will be cut from 10% to 8%, effective July 1, 2020. Also, on AT1 Schedule 1, to maintain the small business rate of 2%, the small business deduction has been reduced from 8% to 6% for days in the tax year after June 30, 2020. These changes will be incorporated in the next version of DT Max.As a workaround, on page 2 of the AT1 return in "Basic Alberta Tax Payable" section, right click on line (J), select "Override this field" and enter the result of the following calculation. (A + B) X Line 066 Where A = [(Number of days in tax year after December 31, 2019 and before July 1, 2020 divided by number of days in tax year) * 0.10] rounded to 5 decimal places Where B = [(Number of days in tax year after June 30, 2020 divided by number of days in the tax year) * 0.08] rounded to 5 decimal places Also right click on line 068, select "Override this field" and enter the total of line (H) to line (J). If the small business is claimed, go on the AT1 Schedule 1 in the "Calculation of the Alberta Small Business Deduction" section, right click on the line pertaining to "After December 31, 2019 & before January 1, 2021:" in column G "Alberta Small Business Deduction" and enter the result of the following calculation. [(Number of days in tax year after December 31, 2019 and before July 1, 2020 divided by number of days in tax year) * 0.08] * Column E Plus [(Number of days in tax year after June 30, 2020 divided by number of days in tax year) * 0.06] * Column E |
