Business and rental income

NEQ

Annual registration fee
The annual registration fee for a sole proprietorship is $39. However, you do not have to pay this fee for the year in which you registered for the first time or for the following year.

If the enterprise register contains incorrect information or if you declared bankruptcy, check "No" on line 436, enter the Québec enterprise number (NEQ) on line 437 and use the online service at www.registreentreprises.gouv.qc.ca to file the Déclaration de mise à jour annuelle (annual updating declaration). The service is free, fast and easy to use. Onscreen instructions will make it easy for you to update the information in your file. (The service and onscreen instructions are in French only, but you can consult courtesy translation RE-401-T for information purposes.)

If you have ceased your business operations in Québec, you must use the online service at www.registreentreprises.gouv.qc.ca to file a Déclaration de radiation (declaration of striking off). (The service and onscreen instructions are in French only, but you can consult courtesy translation RE-600-T for information purposes.) If you were still listed in the enterprise register on January 1, 2023, you must pay the annual registration fee. If you filed a declaration of striking off before January 1, 2023, you have no fee to pay.

RegistrationDate

Info-Exact.o

Business

DT Max will calculate each source of income separately, distinguishing businesses based on type and name. Secondary keywords will appear only when appropriate for the particular option chosen. DT Max will generate a schedule for each option, as appropriate.

To enter partnership income (for limited or non-active partners), use the primary keyword T-Slip and the option "T5013".

The following options are applicable for the keyword Business.

• T776 - Rental

If self-employed, choose this option to record income and expenses related to a rental property.

• T777 - Employment expenses

Use this option if you want DT Max to prepare an employment expense schedule. The total employment expense will be reported on line 22900 of the federal income tax return and on line 210 of the Quebec income tax return.

• T2042 - Farming (cash-basis)

If self-employed, choose this option to record income and expenses related to a farming business reporting on a cash-basis.

• T2042 - Farming (accrual-basis)

If self-employed, choose this option to record income and expenses related to farming business reporting on an accrual-basis.

• T1163/T1164 - Farming (cash-basis)
• T1163/T1164 - Farming (accrual-basis)
• T1273/T1274 harmonized - Farming (cash-basis)
• T1273/T1274 harmonized - Farming (accrual-basis)
• T2121 - Fishing

If self-employed, choose this option to record income and expenses related to a fishing business.

• T2125 - Business

If self-employed, choose this option to record income and expenses related to a business other than a profession, commission, fishing, farming, rental or employment.

If a member of a film shelter and you have received a T1-CP slip, enter the net income from that film here.

• T2125 - Professional

If self-employed, choose this option to record income and expenses related to a professional business.

• T2125 - Commission

If self-employed, choose this option to record income and expenses related to commission business income.

  See the Taxnet Pro™ T1 Line-by-Line Guide (subscription required):
Line 12600 - Rental income - Net
Line 13500 - Business income - Net
Line 13700 - Professional income - Net
Line 13900 - Commission income - Net
Line 14100 - Farming income - Net
Line 14300 - Fishing income - Net
Line 22200 - Deduction for CPP or QPP contributions (Schedule 8)

  See the CRA's general income tax guide:
Line 12600 - Rental income
Lines 13499 to 14300 - Self-employment income
Line 22200 - Deduction for CPP or QPP contributions on self-employment and other earnings

Business-Id

Year-Open

If nothing is entered, DT Max will assume that the statements cover a full year.

Year-End.bus

This field is required for efile.

Fish-Boat

This entry is only relevant to fishing businesses.

Vessel-RegNumber

Phone-Days

Cell-Phone

Fax-Number

NAICS

Product.bus

Main-Species

No_WebPages

WebPage-%GrossInc

WebPageAddress

If the taxpayer have more than five sites, enter the addresses of those that generate the most Internet income.

If the taxpayer don't have a website but have created a profile or other page describing your business on blogs, auction, market place or any other portal or directory site(s), then enter the address(es) of the page(s) if they generate income.

Ownership.l

The following options are applicable for the keyword Ownership.l.

• Sole proprietorship
• Co-ownership
• Partnership
• Co-operation

Partnership-Int%

Account-Number.b

Que-Ident-Number

Partnership-BN

The partnership business number consists of 9 digits.

It appears on the T5013.

This entry is required for efile purposes.

Bus-PINQ

The PIN consists of 16 characters in the format NNNNNNNNNNAANNNN, where "A" is an alphanumeric character and "N" is a numeric character.

This entry is required for efile purposes.

TaxShelter

QueTaxShelter

GST-Number

This is required for efile.

PST-Number

This is required for efile.

Agri-PIN

Own-Use-%

If nothing is entered, DT Max will default to 0% personal use.

The percentage applies globally and reduces all expenses at the same rate to obtain the deductible amount.

Owner-%-OV

The percentages attributable to business partners must be entered with Bus-Partner .

Yukon-MiningBus

The following options are applicable for the keyword Yukon-MiningBus.

• Specified placer mining business (x4)
• Specified quartz mining business (x1)
• Other type of business

Bus-Communal-Org

Num-Units

Debts.bus

Application

AgriInvest
Generally, you are eligible to participate in AgriInvest if you meet all of the following criteria for the 2023 program year:

• you file a 2023 Canadian income tax return reporting eligible farming business income (or loss). If you farm on a reserve, and you are exempt from filing an income tax return, contact your administration for a copy of the form and guide available to you; and
• you met all program requirements by the established deadlines.

For more information on eligibility, see the program handbooks or visit the program Web sites.

AgriStability
Generally, you are eligible to participate in AgriStability if you meet all of the following criteria for the 2023 program year:

• you file a 2023 Canadian income tax return reporting eligible farming business income (or loss). If you farm on a reserve, and you are exempt from filing an income tax return, contact your administration for a copy of the form and guide available to you; and
• you have completed a minimum of six consecutive months of farming activity; and
• you have completed a production cycle; and
• you met all program requirements by the established deadlines.

For more information on eligibility, see the program handbooks or visit the program Web sites.

The following options are applicable for the keyword Application.

Farm-Operation

Farmstead

This information is relevant in determining whether a commodity is qualifying or not for purposes of the Agristability/AgriInvest statements (T1163 or T1273).

Farm-Opening

This information is required to determine the number of years of farming as requested on the Agristability/AgriInvest statements (T1163 or T1273).

Complete-Cycle

If not, the client must have been prevented from completing a production cycle due to disaster circumstances in order to be eligible for AgriStability.

The client does not need to complete a production cycle to be eligible for AgriInvest.

Disaster-circum

Fed-PublicOffice

Farm-Location

Oper-Combined

OtherOperation

The following options are applicable for the keyword OtherOperation.

Statement-A

Use Statement-A to select the business for which "Statement A" will be used.

Schedule-Only

For example, if dealing with foreign business income, this will allow you to provide a statement for your foreign business income based on the data included in this group without including it in the calculation of income on the return.

Business-Address

The following options are applicable for the keyword Business-Address.

• Use the same address as on return
• Enter the address

Street.bus

If no address is entered, DT Max will use the client's home address.

If you wish to enter an apartment number on form TP-128, enter "apt" after the address followed by the apartment number.

This field is also required for efile.

Apartment.bus

City.bu

If no address is entered, DT Max will use the client's home address.

This field is also required for efile.

Province.bu

If no address is entered, DT Max will use the client's home address.

This field is also required for efile.

  See the Taxnet Pro™ T1 Line-by-Line Guide (subscription required):

PostCode.bu

If no address is entered, DT Max will use the client's home address for the business.

This entry is also required for efile.

ID-Address.b

The following options are applicable for the keyword ID-Address.b.

• Taxpayer's address
• Rental address
• Other

Street.b

City.b

Province.b

Postal-Code.b

Fisc-Period.

The following options are applicable for the keyword Fisc-Period..

• Fiscal year-end already based on calendar year
• Alternative method

Choose this method if you have elected to have an off-calendar fiscal period. Additional business income is computed according to ITA S34.1(1). DT Max will calculate the estimated additional income amount based on the stub period (number of days in which the individual carries on the business after the end of the fiscal period, up to and including December 31, 2023/Number of days on which an individual carries on the business that are in the fiscal periods of the business ending in 2023)

You may override the additional income amount with the keyword Addit-Income. DT Max will carryforward the additional income amount include in income this year.

DT Max will adjust the additional income for CCA for the purpose of the reserve. If the business is a farming business, reporting income on a cash basis, DT Max will also adjust income for the Optional Inventory Adjustment (OIA) claimed in year. These two adjustments are done automatically for the purpose of determining adjusted additional income, referred to as "Deemed December 31, 2023 Income".

(ref: ITA S34.1(4)).

If it is a start-up business or if the individual became a member of a partnership after the year end of the partnership's fiscal period, an individual may elect to include additional income according to ITA S34.1(2).

• December 31 year-end method - 1st fiscal period

Choose this method if the fiscal year end of the business is converted to December 31 pursuant to S34.2 of the income tax act and this is your first fiscal period.

• December 31 year-end method - 2nd fiscal period

Choose this method if the fiscal year end of the business is converted to December 31 pursuant to S34.2 of the income tax act and this is second fiscal period.

DT Max will adjust the net income for the second fiscal period for CCA for the purpose of the reserve. If the business is a farming business, reporting income on a cash basis, DT Max will also adjust income for the Optional Inventory Adjustment (OIA) claimed in the second fiscal period.

These two adjustments are done automatically for the purpose of determining "December 31, 2023 Income".

DT Max will carry forward "December 31, 2023 Income" with Addit-Income.

You may override the amount determined by DT Max with the keyword Addit-Income.

(ref: ITA S34.2(2)).

• The previous year was the final year of operations

NI-IndianExempt

Determining whether the business income is taxable is based on the factors that connect income to a reserve. The courts have indicated that the most significant connecting factor is the location where the business carries on its revenue-generating activities. If the actual income-earning activities take place on a reserve, the location of the customers is also an important factor. Other connecting factors, which are less important, are listed below.

Connecting factors

• whether or not you live on a reserve
• whether you maintain an office on a reserve or take business orders from a location on a reserve
• whether your books and records are kept on a reserve
• whether your administrative, clerical, or accounting activities take place on a reserve

Prorating business income and expenses
If some of the revenue-generating activities take place on a reserve and the rest off a reserve, the tax exemption under section 87 of the Indian Act may be prorated. Part of the income will therefore be taxable, and part will be exempt from tax. In such a case, the business expenses will generally be allocated to the taxable part of the income in the same ratio, unless another allocation can be shown to be more reasonable.

The business income is generally exempt from tax if the actual income-earning activities of the business take place on a reserve. If the business is operated entirely on a reserve, the business income is connected to a reserve and is exempt under section 87 of the Indian Act. If the business activities are mostly carried on off a reserve, the business income is taxable because the exemption under section 87 does not apply.

Determining whether the business income is taxable is based on the factors that connect income to a reserve. The courts have indicated that the most significant connecting factor is the location where the business carries on its revenue-generating activities. If the actual income-earning activities take place on a reserve, the location of the customers is also an important factor. Other connecting factors, which are less important, are listed below.

Connecting factors

• whether or not you live on a reserve
• whether you maintain an office on a reserve or take business orders from a location on a reserve
• whether your books and records are kept on a reserve
• whether your administrative, clerical, or accounting activities take place on a reserve

Prorating business income and expenses
If some of the revenue-generating activities take place on a reserve and the rest off a reserve, the tax exemption under section 87 of the Indian Act may be prorated. Part of the income will therefore be taxable, and part will be exempt from tax. In such a case, the business expenses will generally be allocated to the taxable part of the income in the same ratio, unless another allocation can be shown to be more reasonable.

Partnership
If you are a member of a partnership, your partnership income will be taxed in the same way as any other business income. For purposes of section 87 of the Indian Act, the key factor will be the location of the partnership's income-earning activities.

Under the Income Tax Act, partnership income is first calculated as if the partnership were a separate person. Your share of the partnership income from each source will be allocated to you, and will retain its characteristics as to source and nature.

If all the partnership's income-earning activities are carried out on a reserve, all your income from the partnership will be exempt from tax. If one-half of the partnership's income-earning activities are carried out on a reserve, one-half of your share of the partnership income will be exempt.

Fishing
If you carry on a commercial fishing business, your income from that business is generally treated the same as any other business income. Determining whether your business income is exempt from tax is based on the factors that connect income to a reserve.

In determining whether your commercial fishing business income is connected to a reserve, factors that may connect your business income to a reserve are (i) the location of your fishing activities û catching, preparing and transporting the fish and (ii) the location of your selling activities - including the location of your customers, and the location of the sale of the fish. Your income from a commercial fishing business is generally exempt from tax if the actual fishing activities of your business take place within the geographic boundaries of a reserve. If your fishing activities take place mainly off-reserve and your customers are located off-reserve, your fishing income may not qualify for the exemption under section 87 of the Indian Act. However, other connecting factors, described below, may apply to exempt your fishing income from tax.

On March 20, 2012, the Federal Court of Appeal (FCA) released its decisions in the cases of Ron Ballantyne v. Her Majesty the Queen and Her Majesty the Queen v. Ronald Robertson and Roger Saunders (leave to appeal to the Supreme Court of Canada denied October 25, 2012). In both cases, the FCA found that the fishing income earned by the taxpayers was situated on a reserve and exempt from tax.

The CRA will apply these decisions in similar situations, where the connections between the reserve and the fishing income are bona fide and there is no artificial manipulation of the connecting factors, to exempt all of your fishing income from tax for the 2012 and following tax years.

A similar situation means that all of the following conditions are met:

• Your fishing activities in waters near or abutting the reserve have a significant historical and continuing important economic connection to the reserve; and
• You are a member of a cooperative of band members or a member of a band that owns and operates an organization located on the reserve that has a predominant role in your fishing and selling activities and an important role in the general economic life of the reserve.

Where the above conditions are not met and your fishing and selling activities take place off-reserve, your income from fishing will likely be taxable. Where these activities take place both on- and off-reserve, the tax exemption provided for under section 87 of the Indian Act may be prorated. Some of the revenue-generating activities may include preparing the fish for market (e.g., filleting, shelling, icing, canning, freezing, smoking, salting, cooking, and pickling). If this type of processing takes place on a reserve, part of your business income may be exempt, depending on the extent and complexity of the processing done.

The allocation of income between off-reserve fishing activities and on-reserve fish-processing activities is determined on a case-by-case basis and should be reasonable in the circumstances. Since your main revenue-generating activities are catching and selling the fish, the exemption, if any, would usually apply only to that portion of your fishing income that specifically relates to the value-added processing activities that are conducted on a reserve. Your business expenses are generally allocated in the same proportion as your revenues, unless another allocation is more reasonable in the circumstances.

Farming
If you earn farming income, your income from that business is treated the same as any other business income. If your farming activities take place on a reserve, your farming income is generally tax-exempt. If your farming activities take place mainly off a reserve, you have to pay tax on your farming income.

If you are a grain, vegetable, or fruit farmer, the location of the land where your crops are grown or harvested is the most important factor in connecting your income to a reserve. If you are a cattle rancher, the location of your rangeland is the most important connecting factor. If you are involved in other types of farming, the location of your farmland may vary in importance, depending on the nature of your business and the facts of your case. For instance, if your income is from a dairy operation, the location of your milking activities is likely more important than the location of your pastures or hayfields.

If some of your revenue-generating activities from farming take place on a reserve and the rest off a reserve, the exemption may be prorated. Part of your income will therefore be taxable, and part will be exempt from tax. In such a case, your business expenses will generally be allocated to the taxable part of your income in the same ratio, unless another allocation is more reasonable.

  See the Taxnet Pro™ T1 Line-by-Line Guide (subscription required):

Accounting-Meth

The following options are applicable for the keyword Accounting-Meth.

• Cash method

When you use the cash method, you:

• report income in the fiscal period you receive it; and
• deduct expenses in the fiscal period you pay them.

If you use the cash method and receive a post-dated cheque as security for a debt, include the amount in income when the cheque is payable.

If you receive a post-dated cheque as an absolute payment for a debt and the cheque is payable before the debt is due, include the amount in your income on one of the following dates, whichever is earlier:

• the date the debt is payable; or
• the date you cash or deposit the cheque.
  Note
  The preceding post-dated cheque rules apply to income-producing transactions, such as the sale of fish. They do not apply to transactions involving capital property, such as the sale of a boat. When you use the cash method in a fishing business, do not include inventory when you calculate your income. There are, however, two exceptions to this rule.

You can include in inventory the cost of your nets and traps. For more information, see Line 9137 . Nets and traps on page 21. A fishing partnership can use the cash method only if all the partners agree to use it.

For more information on the cash method for fishing income, see the latest archived Interpretation Bulletin IT-433R, Farming or Fishing. Use of Cash Method

• Accrual method

When you use this method you:

• report income in the fiscal period you earn it, no matter when you receive it; and
• deduct expenses in the fiscal period you incur them, whether or not you pay them in that period.

When you calculate your income using the accrual method, the value of all inventories, such as fish, fish by-products, supplies, and so on will form part of the calculation. Make a list of your inventory and count it at the end of your fiscal period. Keep this list as part of your business records. You can use one of the following methods to value your inventory:

• value all inventory at its FMV. Use either the price you would pay to replace an item, or the amount you would get if you sold an item;
• value individual items at cost or FMV, whichever is lower (when you cannot easily tell one item from another, you can value the items as a group). Cost is the price you incur for an item, plus any expenses you incur bringing an item to your business location and putting it in a condition so that it can be used in the business.

Use the same method you used in past years to value your inventory. The value of your inventory at the start of your 2023 fiscal period is the same as the value at the end of your 2022 fiscal period. In your first year of fishing business, you will not have an opening inventory at the start of your fiscal period.

For more information on inventories, see the latest archived Interpretation Bulletin IT-473R, Inventory Valuation.

Note
If you are using the accrual method to calculate your fishing income, you must calculate the cost of the sold goods on a separate sheet. Form T2121 contains no line for this calculation.

  See the Taxnet Pro™ T1 Line-by-Line Guide (subscription required):
Line 12600 - Rental income - Net
Line 13500 - Business income - Net
Line 13700 - Professional income - Net
Line 13900 - Commission income - Net
Line 14100 - Farming income - Net
Line 14300 - Fishing income - Net
Line 22200 - Deduction for CPP or QPP contributions (Schedule 8)

  See the CRA's general income tax guide:
Line 12600 - Rental income
Lines 13499 to 14300 - Self-employment income
Line 22200 - Deduction for CPP or QPP contributions on self-employment and other earnings

First-Last

The following options are applicable for the keyword First-Last.

• Neither first nor last year of operation
• First year of operation

This is to indicate that this is the first year of operations for this business. "First Year" will appear on the business income statement and

DT Max will tick box 33 on form TP-128.

• Last year of operation

This is to indicate that this is the final year of operations. "Final Year" will appear on the business income statement and DT Max will tick box 32 on form TP-128.

Change-In-Use.b

When a taxpayer completely converted his or her principal residence to an income-producing use, he or she is deemed by paragraph 45(1)(a) ITA to have disposed of the property (both land and building) at fair market value and reacquired it immediately thereafter at the same amount. Any gain otherwise determined on this deemed disposition may be eliminated or reduced by the principal residence exemption.

By making the election under subsection 45(2) ITA, the taxpayer defers the gain to a subsequent year.

Tax consequences following the election under subsection 45(2) ITA:

• The asset in question is deemed not to have begun to be used for the purpose of earning income and therefore no deemed disposition.
• When this choice is made, it is impossible to claim CCA on the asset in order to reduce the income
• The taxpayer must include their net revenues from expenses other than CCA.
• If the taxpayer claims CCA, CRA considers that the election was canceled on the first day of the tax year where the deduction is requested.

When the election of subsection 45(2) ITA is made there are 2 possibilities:

• 1 - Paragraphs (b) and (d) of section 54 allow the property to be designated as a principal residence even if the residence is not inhabited by the owner. This choice is possible over a maximum period of 4 years.
• 2 - Article 54.1 allows the property to be designated as a principal residence for an unlimited period if :
  • The individual does not live in his residence because of a change in the place of employment or that of his spouse.
  • The new place of employment must be at least 40 kilometers from his residence.
  • He is not related to his employer.
  • He resumes his residence for the duration of his employment or before the end of the year following the year in which he or his spouse leaves his employment or, he dies during the period of his employment or that of his spouse.

The following options are applicable for the keyword Change-In-Use.b.

• No
• Yes

Inactive.bu

If inactive, the earned income calculated for RRSP purposes will not include any business reserves (T1139) which have been taken into income for the current year.

The following options are applicable for the keyword Inactive.bu.

• Inactive business
• Inactive partner
• Active

  See the Taxnet Pro™ T1 Line-by-Line Guide (subscription required):
Line 12600 - Rental income - Net
Line 13500 - Business income - Net
Line 13700 - Professional income - Net
Line 13900 - Commission income - Net
Line 14100 - Farming income - Net
Line 14300 - Fishing income - Net
Line 22200 - Deduction for CPP or QPP contributions (Schedule 8)

  See the CRA's general income tax guide:
Line 12600 - Rental income
Lines 13499 to 14300 - Self-employment income
Line 22200 - Deduction for CPP or QPP contributions on self-employment and other earnings

Contact-Person

Enter complete contact person information, including the first and last name of the contact person, the business name (if applicable) and the daytime phone number. You must provide complete contact person information each time you submit a form. To ensure the administration has the most current contact information, any contact person information you previously provided will be replaced with new information you include on this form. Contact person information will not be carried forward from a previous year. If you leave this area blank, the administration will contact the taxpayer directly if they require additional information.

By providing a contact person's name, you are authorizing both the AgriInvest and AgriStability programs to receive information from, and to disclose information to, the contact person, and to make changes to the taxpayer applications as directed by the contact person.

Use the keyword Copy-to-Contact to indicate if you want a copy of the COB automatically mailed to the contact person.

This only pertains to the AgriStability/AgriInvest program.

The following options are applicable for the keyword Contact-Person.

• Tax preparer - main address
• Tax preparer - alternate address
• Other contact person
• Do not print

Contact-Name

  See the Taxnet Pro™ T1 Line-by-Line Guide (subscription required):
Line 12600 - Rental income - Net
Line 13500 - Business income - Net
Line 13700 - Professional income - Net
Line 13900 - Commission income - Net
Line 14100 - Farming income - Net
Line 14300 - Fishing income - Net
Line 22200 - Deduction for CPP or QPP contributions (Schedule 8)

  See the CRA's general income tax guide:
Line 12600 - Rental income
Lines 13499 to 14300 - Self-employment income
Line 22200 - Deduction for CPP or QPP contributions on self-employment and other earnings

Name.m

First-Name

Street.m

City.m

Province.m

PostCode.m

Phone-Num

Fax-Num

Cell-Num

Copy-to-Contact

Jurisdict.bu   

Hence, if the business income does not originate completely from the province of residence ( Prov-Residence), specify the province in which the income originates and enter the percentage of income originating in that province.

If all income originates in the province of residence, there is no need to enter this keyword. In fact, since by default, income is taxed in the province of residence, income from that jurisdiction need not be entered.

For example, the following may be entered for a Nova Scotia resident:

	Jurisdict.bu	Alberta	40%
	Jurisdict.bu	Ontario	30%
	Jurisdict.bu	Quebec	20%
The remaining ten percent will be attributed to Nova Scotia as if
	Jurisdict.bu	Nova Scotia	10% were entered.

Use [Alt-J] to enter different values for other jurisdictions.

  See the Taxnet Pro™ T1 Line-by-Line Guide (subscription required):
Line 12600 - Rental income - Net
Line 13500 - Business income - Net
Line 13700 - Professional income - Net
Line 13900 - Commission income - Net
Line 14100 - Farming income - Net
Line 14300 - Fishing income - Net

  See the CRA's general income tax guide:
Line 12600 - Rental income
Lines 13499 to 14300 - Self-employment income

FuelCharge-Cr

NonArms-transac

GrossInc-Alloc

Salaries-Alloc

Balance-Sh

Note: This is not enough information with which to prepare a complete Balance Sheet.

The following options are applicable for the keyword Balance-Sh.

• Assets
• Liabilities
• Shareholder's equity
• Inventory
• Movable property
• Immovable property
• Financial institution

Amount.b

The following options are applicable for the keyword Amount.b.

• Accounts receivable
• Other types of accounts receivable
• Total current assets
• Total business assets
• Accounts payable
• Bank loans
• Other loans
• Total current liabilities
• Total long-term liabilities
• Total business liabilities
• Drawings from equity
• Capital contribution to equity

Descript.b

Provide all relevant information as applicable.

Location.b

Creditor.b

In the case of immoveable property, enter the creditor's address as well.

Book-Value

PostalCode.b

Commodity

Sales   

DT Max will indicate the total for each commodity as a qualifying or non-qualifying sale on the AgriStability/AgriInvest farming income statement(T1163, T1273).

The AgriStability/AgriInvest code number and the description will be indicated with the amount on the T1163 or T1273 forms.

DT Max will determine whether the sale is qualifying or not based on the province of residence or province of main farmstead ( Farmstead), as the case may be.

See Commodity for the commodity list. Use [Alt-J] to enter different values for other jurisdictions.

Purchases   

DT Max will indicate the total for each commodity as a qualifying or non-qualifying purchase on the AgriStability/AgriInvest farming income statement (T1163, T1273).

The AgriStability/AgriInvest code number and the description will be indicated with the amount on the T1163 or T1273 forms.

DT Max will determine whether it is qualifying or not based on the province of residence or province of main farmstead ( Farmstead), as the case may be.

See Commodity for the commodity list.

Use [Alt-J] to enter different values for other jurisdictions.

Program-Pymt-A

Enter the amount of repayment of program benefits as a negative value and indicate the applicable code number. The repayment will be reported as an expense on the T2042 form and AgriStability/AgriInvest statement (section 5: Commodity sales and program payments).

DT Max will determine whether the payment is qualifying or not based on the code number.

Program-Pymt-B

Enter the amount of repayment of program benefits as a negative value and indicate the applicable code number. The repayment will be reported as an expense on the T2042 form and AgriStability/AgriInvest statement (section 5: Commodity sales and program payments).

DT Max will determine whether the payment is qualifying or not based on the code number.

Crop-Income   

The amounts should be entered for each type of crop income as specified on the T2042 form.

You may enter multiple amounts.

The following options are applicable for the keyword Crop-Income.

• Wheat
• Oats
• Barley
• Mixed grains
• Corn
• Canola
• Flaxseed
• Soya beans
• Other grains and oilseeds
• Apples
• Other fruits
• Potatoes
• Vegetables (excluding potatoes)
• Tobacco
• Greenhouse and nursery products
• Forage crops or seeds
• Other crops

LiveStockInc   

The amounts should be entered for each type of livestock income as specified on the T2042 form.

You may enter multiple amounts.

The following options are applicable for the keyword LiveStockInc.

• Cattle sold
• Swine sold
• Poultry sold
• Sheep and lambs sold
• Other animals specialties

Commod-Inc   

The amounts should be entered for each type of commodity income as specified on the T2042 form.

You may enter multiple amounts.

The following options are applicable for the keyword Commod-Inc.

• Milk and cream
• Eggs
• Bees and honey
• Furs
• Maple products
• Wood (including stumpage)
• Other commodities

Oth-Farm-Inc   

The amounts should be entered for each source of other income.

You may enter multiple amounts.

The following options are applicable for the keyword Oth-Farm-Inc.

• Custom or contract work, and machine rentals
• Insurance proceeds
• Patronage dividends
• Dairy subsidies - program payments
• Crop insurance - program payments
• Other subsidies
• Gasoline rebates
• Property tax rebates
• Other rebates
• Livestock insurance proceeds
• Other farming income

Oth-FarmInc   

DT Max will report the income on the AgriStability/AgriInvest statement(T1163 or T1273).

The numbers in front of the income items represent the AgriStability/AgriInvest code numbers.

The following options are applicable for the keyword Oth-FarmInc.

• 9540 Other program payments
• 9544 Disaster assistance and program payments
• 9574 Resales, rebates / eligible expenses
• 9575 Rebates / non eligible expenses
• 9601 Agricultural contract work
• 9605 Patronage dividends
• 9607 Interest
• 9610 Gravel (revenues/losses)
• 9611 Trucking
• 9612 Resales of commodities purchased
• 9613 Leases (gas, oil well, surface, etc.)
• 9614 Machine rental
• 9600 Other farming income

Income.bus   

The following options are applicable for the keyword Income.bus.

• Gross sales, commissions, or fees
• Professional fees (including work-in-progress)
• GST/HST collected on sales...(Quick Method)
• Sales, commissions, or fees x Quick Method rate
• Gross rental income
• Prospector's and grubstaker shares disposition (S.35(1)(d))

Use this option to enter the prospector's and grubstaker shares disposition. The income is the lesser of (paragraphs 35(1)(d) and 81(1)(l)):

• the FMV of the shares at the time of receipt;
• the FMV at the time of disposition or exchange.

A deduction is available on federal line 24900 for one-half of the inclusion (paragraph 110(1)(d.2)), provided that the included amount is not exempt from tax in Canada by reason of a provision in a tax treaty with another country that has the force of law in Canada. The combined effect of these provisions is essentially the equivalent of capital gains treatment for a sale of the mining property with a zero ACB, although the amount is not characterized as a capital gain under the Act.

A deduction is available on Quebec line 297 for one-half of the inclusion (sec. 218).

Any increase in the value of the shares after their acquisition by the prospector will be treated as a capital gain (since the amount included in division B income is the ACB: subsection 52(1)).

• Profits from property flipping
• Other income
• Apprenticeship training tax credit (ON479 2022 )
• Co-operative education tax credit (ON479 2022 )
• Yukon bus. carbon price rebate received last year YT(S14)
• T4 Box 81, Placement or employment agency workers
• T4 Box 82, Taxi drivers and drivers of other vehicles
• T4 Box 83, Barbers or hairdressers
• T4 Box 88, Indian (exempt income) - Self-employment
• T4A Box 020, Self-employed commissions
• T4A Box 020, Commissions received after ceased operations

Use this option to enter the Commissions received from a business in the years following the end of its operations.

You are not required to pay the Québec Pension Plan (QPP) contribution or the Québec parental insurance plan (QPIP) premium on this amount.

Note that any commissions owed to you while you operated your business that were not paid in the year you ceased operations must be entered on line 26 of Schedule L.

The calculation of the QPIP and the QPP for a self-employed worker is based on the business income that the taxpayer operates in the year (see sections 47(1) of the Act respecting the Quebec Pension Plan and sections 43 " business income " and 66 Parental Insurance Act).

Therefore, commissions received when the business is no longer actively operated should not be included in the calculation of its contributions.

Appendix R section A for calculating QPIP contributions and grid 445 for calculating QPP contributions are both based on the amount from line 27 of Schedule L. By entering non-eligible commission income on line 30, we avoid increasing the income eligible for contributions.

At the federal level, the amount of ineligible commission will be reported on line 13000 so as not to be included in the calculation of Schedule 8.

• T4A Box 028, Other income
• T4A Box 048, Fees for services
• T3 Box 26, Income from a communal organization
• T5013 Box 236, Canadian journalism labour tax credit
• T5013 Box 237, Return of fuel charge proc. to farmers cr.

Fish-Income   

Enter the appropriate amount for each type selected.

The following options are applicable for the keyword Fish-Income.

• Fish products
• Other marine products
• Grants, credits and rebates
• Subsidies
• Compensation for loss of fishing income or property
• Sharesperson income (Name of fishing boat and captain)
• Fishers - Gross income (Income from T4 Box 78)

Other-Income.f   

Discounts   

The following options are applicable for the keyword Discounts.

• GST/QST included in sales
• Discounts & rebates on sales

Inventory.bu   

Please note that this does not refer to the inventory respecting nets for fishermen.

The following options are applicable for the keyword Inventory.bu.

• Inventory - beginning of year

Enter the opening inventory amount.

• Inventory - end of year

Enter the closing inventory amount.

• Inventory - beginning of year (FMV)

Enter the fair market value (FMV) of the opening inventory.

This is only relevant for a farming business which is reporting income under the cash basis method of accounting. DT Max will carry forward the ending inventory value of this year as next year's opening inventory value. Although this information is not required for tax purposes, it's available for your records.

• Inventory - end of year (FMV)

Enter the fair market value (FMV) of the ending inventory.

This is only relevant for a farming business which is reporting income under the cash basis method of accounting.

The FMV of ending inventory is required to determine the OIA (Optional Inventory Adjustment) amount.

The maximum claim for OIA is determined by subtracting the MIA (Mandatory Inventory Adjustment) from the FMV of the ending inventory.

MIA is not calculated by DT Max. This amount must be entered using the keyword InventoryAdj.

If required, OIA may be overridden using the keyword InventoryAdj.

MIA-Purchased

The mandatory inventory adjustment decreases the net loss if the taxpayer held inventory at the end of the fiscal period. It applies to a farmer (other than the fiscal period in which the farmer has died) using the cash method in computing income from a farming business.

You have to make the MIA if all of the following conditions apply:

• you use the cash method to report your income;
• you have a net loss on line 9899 of Form T2042 (line 9969 of Forms T1163/T1164/T1273/T1274); and
• the taxpayer bought inventory and still had it at the end of the 2023 fiscal period. This does not refer only to inventory bought in 2023. It includes inventory the taxpayer had previously bought and still owned at the end of the 2023 fiscal period.

• the net loss before adjustments on line 9899 (Line 9969 for AgriStability and AgriInvest); or
• the value of the purchased inventory the taxpayer still had at the end of the 2023 fiscal period.

To value the inventory, you need to know the meaning of the following terms.

Inventory is a group of items that a business holds and intends to consume or sell to its customers. Farm inventory is tangible property that is:

• held for sale, such as harvested grain;
• used in the production of saleable goods, such as seed and feed; or
• in the process of being produced, such as standing crops, or feeder livestock.

Seed that you have already planted, and fertilizer or chemicals that you have already applied, are no longer part of the inventory items, but are included in the value of the standing crop that may be included in the Optional Inventory Adjustment (OIA).

Purchased inventory is inventory bought and paid for.

Specified animals are horses. You may also choose to designate cattle that are registered under the Animal Pedigree Act as specified animals. To make this choice, put a note on the income tax return saying that you want to designate the animal this way. If you indicate on the return that it is a specified animal, the government will continue to consider it as such until you sell it.

Cash cost is the amount you paid to buy your inventory.

Fair market value (FMV) is generally the highest dollar value you can get for your property in an open and unrestricted market between an informed and willing buyer and an informed and willing seller who are dealing with each other at arm's length.

Value of purchased inventory

Except for specified animals, you have to value any purchased inventory that you bought before or during the 2023 fiscal period at the lesser of:

• the cash cost; or
• the fair market value.

The following options are applicable for the keyword MIA-Purchased.

• Specified animals (year of purchase 2023 )
• Specified animals (year of purchase 2022 )
• Specified animals (year of purchase 2021 )
• Specified animals (year of purchase 2020 )
• Specified animals (year of purchase 2019 and prior)
• Other inventory (year of purchase 2023 )
• Other inventory (year of purchase 2022 )
• Other inventory (year of purchase 2021 )
• Other inventory (year of purchase 2020 )
• Other inventory (year of purchase 2019 and prior)

Amount-PaidPrior

Amount-Paid-Cur

FMV-Inventory

Prior-FixedValue

Cur-Fixed-Value

Specified animal
In the year of acquisition, a farmer may choose to value a "specified animal" at 70% of its cash cost or at a greater amount not exceeding its cash cost.

Subsection 28(1.3) provides a formula for prorating at 70% in taxation years which are less than 51 weeks. The formula is 100 minus (30 x (number of days in the business )/(number of days in the taxation year)).

Valuing the purchased inventory
Value, at one of the following amounts, the specified animals that you bought in your 2023 fiscal period and still have at the end of this period:

• the cash cost;
• 70% of the cash cost; or
• any amount between these two amounts.

Value, at one of the following amounts, the specified animals that you bought before the 2023 fiscal period and still have at the end of this period:

• the cash cost;
• 70% of:
  • the value of the specified animals for MIA purposes as determined at the end of the 2022 fiscal period; plus
  • any amounts you paid in the 2023 fiscal period toward the purchase price; or
  • any amount between these two amounts.

If no value is entered, DT Max will use the value calculated at 70% as the chosen value of purchased inventory.

InventoryAdj   

The MIA is not calculated or limited automatically by the program. You have to enter this data manually.

These adjustments will then appear on the farming income statement and, in the case of the OIA, will replace the amounts calculated by DT Max.

DT Max will carry forward the OIA claimed this year as OIA-previous year.

Calculation of OIA:
FMV of ending inventory	A
Less: MIA	B
	_______
Maximum OIA (A - B)	C

The following options are applicable for the keyword InventoryAdj.

• Mandatory inventory adjustment (MIA) - previous year

Mandatory Inventory Adjustment (MIA) claimed in the previous year.

This is only relevant for a farming business which is reporting income under the cash basis method of accounting.

MIA - previous year is deducted from farming income.

DT Max will carryforward MIA claimed this year as MIA - previous year.

This amount will only have to be entered by a first time user of DT Max, or if the user wants to change the amount carried forward by DT Max.

DT Max does not calculate nor optimize the MIA amount. The user must enter this amount.

• Mandatory inventory adjustment (MIA) - current year / ov

Mandatory Inventory Adjustment (MIA) to claim this year.

This is only relevant for a farming business which is reporting income under the cash basis method of accounting.

DT Max does not calculate nor optimize the MIA amount. The user must enter this amount.

MIA is added to the net farming loss.

DT Max will carryforward MIA claimed this year as MIA - previous year.

	+-------------------------------------------------------------+
|	CONDITIONS FOR MIA (IT-526 (4)):	|
|	--------------------------------	|
|		|
|	1. Farming Loss before MIA & OIA	|
|	2. Reporting net income under cash basis accounting method.	|
|	3. Current year purchases are included in ending inventory	|
|		|
|	NB: MIA & OIA do not apply in the year of death.	|
	+-------------------------------------------------------------+

• Optional inventory adjustment (OIA) - previous year

Optional Inventory Adjustment (OIA) claimed in the previous year.

This is only relevant for a farming business which is reporting income under the cash basis method of accounting.

OIA - previous year is deducted from farming income.

DT Max will carryforward OIA claimed this year as OIA - previous year.

This amount will only have to be entered by a first time user of DT Max, or if the user wants to change the amount carried forward by DT Max.

• Optional inventory adjustment (OIA) - current year / ov

Optional Inventory Adjustment (OIA) to be claimed this year.

This is only relevant for a farming business which is reporting income under the cash basis method of accounting.

The user must only enter this amount if he/she wants to override the OIA amount calculated by DT Max.

Cost-Sales   

The following options are applicable for the keyword Cost-Sales.

• Purchases - COGS
• Subcontracts - COGS
• Direct wage costs - COGS
• Other costs - COGS

Reserve   

The following options are applicable for the keyword Reserve.

• Reserve for 1971 A/R - beginning of year

Opening reserve in respect of 1971 receivables

• Reserve for 1971 A/R - end of year

Ending reserve in respect of 1971 receivables.

• Reserve - goods and services

Reserve with respect to goods and services per ITA S20(1)(m).

Example: in case of a reserve that is reasonably anticipated in respect of goods, these goods will have to be delivered after the end of the year; if the reserve is reasonably anticipated in respect of services, these services will have to be rendered after the end of the year.

Enter the reserve you want to deduct from business income per ITA S20(1)(m). DT Max will deduct this amount as an other expense.

• Reserve - goods & services (previous year)

Reserve claimed in the previous year with respect to goods and services per ITA S20(1)(m). DT Max will included this amount on line 8290 of federal form T2125 as reserves claimed in the previous year and on line 124 of Quebec form TP-80.

• Reserve - debt forgiveness

Enter the current year's reserve for to debt forgiveness. DT Max will deduct the amount as other expenses on forms T2125 and TP-80.

• Reserve - debt forgiveness (previous year)

Enter the previous year's reserve for debt forgiveness. DT Max will included this amount on line 8290 of federal form T2125 as reserves claimed in the previous year and on line 124 of Quebec form TP-80.

Expenses   

Any number of such business expenses can be entered. These are used to create a Statement of Business Income and Expenses to attach to the tax return.

The following options are applicable for the keyword Expenses.

• Advertising

Expenses for advertising, including ads in Canadian newspapers and on Canadian television and radio stations. You may also include on this line any amount paid as a finder's fee. Certain restrictions apply to the amount of expenses deduct for advertising in a periodical. You can deduct all the expense if your advertising is directed to a Canadian market and the original editorial content in the issue is 80% or more of the total non-advertising content in the issue.

You can deduct 50% of the expense if your advertising in a periodical is directed to a Canadian market and the original editorial content in the issue is less than 80% of the total non-advertising content in the issue.

Also, you cannot deduct expenses for advertising directed mainly to a Canadian market when you advertise with a foreign broadcaster.

• Meals expenses

The maximum amount you can claim for food, beverages, and entertainment expenses is 50% of either the amount you incur or an amount that is reasonable in the circumstances, whichever is less. These limits also apply to the cost of your meals when you travel or go to a convention, conference, or similar event.

However, special rules can affect your claim for meals in these cases.

• Meals expenses (regular travel - Quebec)

The deduction of meal expenses (regular travel) incurred in the course of activities related to the business is subject to the 50% limit (or the specified percentage), but not to the ceiling based on sales if the activities take place at a location at least 40 kilometres from the place of business and are usually (that is, on a regular and ongoing basis) carried on at such a distance from the place of business.

• Meals expenses (not subject to the set limits - Quebec)

Neither the 50% limit (or specified percentage) nor the ceiling based on sales applies to the deduction of your meal and entertainment expenses if you are in one of the following situations:

• You incurred the expenses in the ordinary course of your business, which consists in providing food, beverages or entertainment to customers for consideration (if you are in the restaurant or hotel business).
• You billed the expenses to a customer, as shown on the customer's bill.
• You included the expenses in one of your employee’s salary or wages, or, if you did not include them, the employee worked at a special work site or at a location so remote that the employee could not reasonably be expected to establish his or her home there (in this case, the expenses do not constitute a taxable benefit). The work site must be located in Canada, at least 30 kilometres from an urban area with a population of 40,000 or more. If you are a producer in the cultural field and you pay an allowance for meal expenses to an artist who is self-employed, the latter will be considered an employee for the purposes of the deduction for entertainment expenses (but only regarding you). Consequently, if, as an employee, the artist had to report the value of the benefit represented by the allowance as taxable income (or did not have to report it because he or she had to work at a special work site or at a remote location), no limit would apply to the amount you may deduct. However, this exception will apply only where the allowance is paid under a group or individual agreement binding an artist and a producer. The agreement must be entered into in compliance with the Act respecting the professional status and conditions of engagement of performing, recording and film artists. The rules concerning the deductibility of entertainment expenses remain unchanged for an artist who receives an allowance from a producer.
• You inc urred the expenses to provide meals to an employee housed at a work camp so remote that the employee cannot reasonably be expected to return home daily. The camp must be temporary and must have been constructed or installed for the purpose of providing meals and accommodation to employees working at a construction site.
• You incurred the expenses to celebrate Christmas or a similar event, and all of your employees who work at a particular place of business were invited to the celebration. You cannot deduct expenses for more than six such events in a calendar year.
• You incurred the expenses in connection with an activity organized principally for the benefit of a registered charity.

• Meals expenses (long-haul truck driver)

Under proposed legislation, the amount deductible for food and beverages consumed by a long-haul truck driver during an eligible travel period will be increased from 75% to 80% for expenses incurred in or after 2011. An eligible travel period is a period of at least 24 continuous hours throughout which the driver is away from the municipality and metropolitan area in which the driver resides (the residential location) and is driving a long-haul truck that transports goods to, or from, a location that is beyond a radius of at least 160 kilometres from the residential location.

• Entertainment expenses

The maximum amount you can claim for entertainment expenses is 50% of either the amount you incur or an amount that is reasonable in the circumstances, whichever is less.

• Bad debts

You can deduct an amount for a bad debt if you had determined that an account receivable is a bad debt in the year and you had already included the receivable in income.

• Insurance

You can deduct all ordinary commercial insurance premiums you incur on any buildings, machinery, and equipment you use in your business. For more information about claiming your motor vehicle insurance costs.

• Interest - short-term & bank charges
• Interest - long-term
• Interest
• Business tax, fees, licences, memberships, & subscriptions

You can deduct any annual licence fees and business taxes you incur to run your business. You can also deduct annual dues or fees to keep your membership in a trade or commercial association. You cannot deduct club membership dues (including initiation fees) if the main purpose of the club is dining, recreation, or sporting activities.

• Office expenses

You can deduct the cost of office expenses. These include small items such as pens, pencils, paper clips, stationery, and stamps. Office expenses do not include items such as calculators, filing cabinets, chairs, and desks. These are capital items.

• Supplies

You can deduct the cost of items used indirectly to provide the business’s goods or services (e.g., drugs and medication used in a veterinary operation, or cleaning supplies used by a plumber).

• Legal fees and related expenses

Deduct the fees you incurred for external professional advice or services, including consulting fees.

You can deduct accounting and legal fees you incur to get advice and help in keeping your records. You can also deduct fees you incur for preparing and filing your income tax and GST/HST returns.

You can deduct accounting or legal fees you paid to have an objection or appeal prepared against an assessment for income tax, Canada Pension Plan or Quebec Pension Plan contributions, or Employment Insurance premiums. However, the full amount of these deductible fees must first be reduced by any reimbursement of these fees that you have received. Report the difference on line 232 of your income tax return. If you received a reimbursement in 2023 for the types of fees that you deducted in a previous year, report the amount you received on line 130 of your 2023 income tax return.

You cannot deduct legal and other fees you incur to buy a capital property. Instead, add these fees to the cost of the property.

• Professional dues
• Accounting and other professional fees
• Management and administration fees

You can deduct management and administration fees incurred to operate your business, including bank charges. Do not include on this line employee's salaries, property taxes, or rents paid. You can claim these amounts elsewhere on the appropriate form.

• Rent

You can deduct rent incurred for property used in your business. For example, you can deduct rent for the land and building where your business is situated.

• Maintenance and repairs

You can deduct the cost of labour and materials for any minor repairs or maintenance done to property you use to earn income. However, you cannot deduct the value of your own labour. You cannot deduct costs you incur for repairs that are capital in nature. However, you may be able to claim capital cost allowance (CCA).

• Maintenance and repairs (related to the units rented only)
• Salaries, wages and benefits (including employer's contr.)

You can deduct gross salaries and other benefits you pay to employees.

• Property taxes

You can deduct property taxes you incurred for property used in your business. For example, you can deduct property taxes for the land and building where your business is situated.

• Travel

You can deduct travel expenses you incur to earn business and professional income. Travel expenses include public transportation fares, hotel accommodations, and meals.

• Utilities (telephone)

You can deduct expenses for telephone if you incurred the expenses to earn income.

• Utilities (light & power)

You can deduct expenses for utilities, such as gas, oil, electricity, and water, if you incurred the expenses to earn income.

• Fuel costs (except for motor vehicles)

You can deduct the cost of fuel (including gasoline, diesel, and propane), motor oil, and lubricants used in your business.

• Delivery, freight, and express

You can deduct the cost of delivery, freight, and express incurred in the year that relates to your business.

• Motor vehicle expenses (not including CCA)
• Commissions paid
• Convention and training expenses
• Gardening
• Snow removal
• Annual registration fee paid (NEQ)
• Other expenses (specify)

FishExpenses   

A list of fishing-related expenses is provided when the keyword is used.

Non fishing-specific expenses should be entered as Expenses .

The following options are applicable for the keyword FishExpenses.

• Bait, ice, salt
• Crew shares
• Fuels and oil costs (except for motor vehicles)
• Gear
• Food stocked on the boat to feed the crew (100%)
• Licences
• Nets and traps
• Repairs - Fishing boat
• Repairs - Engine
• Repairs - Electrical equipment
• Repairs - Insurance recovery

FarmExpenses   

A list of farming-related expenses is provided when the keyword is used. DT Max will report the expenses on the T2042 statement.

Non farming-specific expenses should be entered as Expenses .

The following options are applicable for the keyword FarmExpenses.

• Containers and twine
• Fertilizers and lime
• Pesticides (herbicides, insecticides, fungicides)
• Seeds and plants
• Feed, supplements, straw, and bedding
• Livestock purchases
• Veterinary fees, medicine, and breeding fees
• Machinery (repairs, licences, insurance)
• Machinery (gasoline, diesel fuel, oil)
• Building repairs
• Fence repairs
• Land clearing and draining
• Crop insurance, GRIP, stabilization premiums
• Custom or contract work, and machinery rental
• Electricity
• Heating fuel
• Insurance program overpayment recapture
• Other insurance premiums
• Interest
• Office expenses
• Legal and accounting fees
• Property taxes
• Rent (land, buildings, and pasture)
• Salaries, wages and benefits
• Motor vehicle expenses (excluding CCA)
• Small tools
• Other farming expenses (specify)

Farm-Expense   

DT Max will report the expenses as eligible on the AgriStability/AgriInvest statement.

The numbers in front of the expense items represent the AgriStability/AgriInvest programs code numbers. Use [Alt-J] to enter different values for other jurisdictions.

Oth-Farm-Exp   

DT Max will report the expenses as non eligible on the AgriStability/AgriInvest statement.

The numbers in front of the expense items represent the AgriStability/AgriInvest code numbers.

The following options are applicable for the keyword Oth-Farm-Exp.

• 9760 Machinery (repairs, licences, insurance)
• 9765 Machinery lease/rental
• 9792 Advertising and promotion costs
• 9795 Building and fence repairs
• 9796 Land clearing and draining
• 9798 Contract work, seed cleaning
• 9804 Other insurance premiums
• 9805 Interest (real estate, mortgage, other)
• 9807 Membership/subscription fees
• 9808 Office expenses
• 9809 Legal and accounting fees
• 9810 Property taxes
• 9811 Rent (land, buildings, pastures)
• 9816 Non-arm's length salaries
• 9819 Motor vehicle expenses
• 9820 Small tools
• 9821 Soil testing
• 9823 Licences/permits
• 9824 Telephone
• 9825 Quota rental (tobacco, dairy)
• 9826 Gravel
• 9827 Purchases of commodities resold
• 9829 Motor vehicle interest & leasing costs
• 9896 Other (specify)

Exp-%Claim   

The following options are applicable for the keyword Exp-%Claim.

• Advertising

Expenses for advertising, including ads in Canadian newspapers and on Canadian television and radio stations. You may also include on this line any amount paid as a finder's fee. Certain restrictions apply to the amount of expenses deduct for advertising in a periodical. You can deduct all the expense if your advertising is directed to a Canadian market and the original editorial content in the issue is 80% or more of the total non-advertising content in the issue.

You can deduct 50% of the expense if your advertising in a periodical is directed to a Canadian market and the original editorial content in the issue is less than 80% of the total non-advertising content in the issue.

Also, you cannot deduct expenses for advertising directed mainly to a Canadian market when you advertise with a foreign broadcaster.

• Meals expenses

The maximum amount you can claim for food, beverages, and entertainment expenses is 50% of either the amount you incur or an amount that is reasonable in the circumstances, whichever is less. These limits also apply to the cost of your meals when you travel or go to a convention, conference, or similar event.

However, special rules can affect your claim for meals in these cases.

• Meals expenses (regular travel - Quebec)

The deduction of meal expenses (regular travel) incurred in the course of activities related to the business is subject to the 50% limit (or the specified percentage), but not to the ceiling based on sales if the activities take place at a location at least 40 kilometres from the place of business and are usually (that is, on a regular and ongoing basis) carried on at such a distance from the place of business.

• Meals expenses (not subject to the set limits - Quebec)

Neither the 50% limit (or specified percentage) nor the ceiling based on sales applies to the deduction of your meal and entertainment expenses if you are in one of the following situations:

• You incurred the expenses in the ordinary course of your business, which consists in providing food, beverages or entertainment to customers for consideration (if you are in the restaurant or hotel business).
• You billed the expenses to a customer, as shown on the customer's bill.
• You included the expenses in one of your employee’s salary or wages, or, if you did not include them, the employee worked at a special work site or at a location so remote that the employee could not reasonably be expected to establish his or her home there (in this case, the expenses do not constitute a taxable benefit). The work site must be located in Canada, at least 30 kilometres from an urban area with a population of 40,000 or more. If you are a producer in the cultural field and you pay an allowance for meal expenses to an artist who is self-employed, the latter will be considered an employee for the purposes of the deduction for entertainment expenses (but only regarding you). Consequently, if, as an employee, the artist had to report the value of the benefit represented by the allowance as taxable income (or did not have to report it because he or she had to work at a special work site or at a remote location), no limit would apply to the amount you may deduct. However, this exception will apply only where the allowance is paid under a group or individual agreement binding an artist and a producer. The agreement must be entered into in compliance with the Act respecting the professional status and conditions of engagement of performing, recording and film artists. The rules concerning the deductibility of entertainment expenses remain unchanged for an artist who receives an allowance from a producer.
• You inc urred the expenses to provide meals to an employee housed at a work camp so remote that the employee cannot reasonably be expected to return home daily. The camp must be temporary and must have been constructed or installed for the purpose of providing meals and accommodation to employees working at a construction site.
• You incurred the expenses to celebrate Christmas or a similar event, and all of your employees who work at a particular place of business were invited to the celebration. You cannot deduct expenses for more than six such events in a calendar year.
• You incurred the expenses in connection with an activity organized principally for the benefit of a registered charity.

• Meals expenses (long-haul truck driver)

Under proposed legislation, the amount deductible for food and beverages consumed by a long-haul truck driver during an eligible travel period will be increased from 75% to 80% for expenses incurred in or after 2011. An eligible travel period is a period of at least 24 continuous hours throughout which the driver is away from the municipality and metropolitan area in which the driver resides (the residential location) and is driving a long-haul truck that transports goods to, or from, a location that is beyond a radius of at least 160 kilometres from the residential location.

• Entertainment expenses

The maximum amount you can claim for entertainment expenses is 50% of either the amount you incur or an amount that is reasonable in the circumstances, whichever is less.

• Bad debts

You can deduct an amount for a bad debt if you had determined that an account receivable is a bad debt in the year and you had already included the receivable in income.

• Insurance

You can deduct all ordinary commercial insurance premiums you incur on any buildings, machinery, and equipment you use in your business. For more information about claiming your motor vehicle insurance costs.

• Interest - short-term & bank charges
• Interest - long-term
• Interest
• Business tax, fees, licences, memberships, & subscriptions

You can deduct any annual licence fees and business taxes you incur to run your business. You can also deduct annual dues or fees to keep your membership in a trade or commercial association. You cannot deduct club membership dues (including initiation fees) if the main purpose of the club is dining, recreation, or sporting activities.

• Office expenses

You can deduct the cost of office expenses. These include small items such as pens, pencils, paper clips, stationery, and stamps. Office expenses do not include items such as calculators, filing cabinets, chairs, and desks. These are capital items.

• Supplies

You can deduct the cost of items used indirectly to provide the business’s goods or services (e.g., drugs and medication used in a veterinary operation, or cleaning supplies used by a plumber).

• Legal fees and related expenses

Deduct the fees you incurred for external professional advice or services, including consulting fees.

You can deduct accounting and legal fees you incur to get advice and help in keeping your records. You can also deduct fees you incur for preparing and filing your income tax and GST/HST returns.

You can deduct accounting or legal fees you paid to have an objection or appeal prepared against an assessment for income tax, Canada Pension Plan or Quebec Pension Plan contributions, or Employment Insurance premiums. However, the full amount of these deductible fees must first be reduced by any reimbursement of these fees that you have received. Report the difference on line 232 of your income tax return. If you received a reimbursement in 2023 for the types of fees that you deducted in a previous year, report the amount you received on line 130 of your 2023 income tax return.

You cannot deduct legal and other fees you incur to buy a capital property. Instead, add these fees to the cost of the property.

• Professional dues
• Accounting and other professional fees
• Management and administration fees

You can deduct management and administration fees incurred to operate your business, including bank charges. Do not include on this line employee's salaries, property taxes, or rents paid. You can claim these amounts elsewhere on the appropriate form.

• Rent

You can deduct rent incurred for property used in your business. For example, you can deduct rent for the land and building where your business is situated.

• Maintenance and repairs

You can deduct the cost of labour and materials for any minor repairs or maintenance done to property you use to earn income. However, you cannot deduct the value of your own labour. You cannot deduct costs you incur for repairs that are capital in nature. However, you may be able to claim capital cost allowance (CCA).

• Salaries, wages and benefits (including employer's contr.)

You can deduct gross salaries and other benefits you pay to employees.

• Property taxes

You can deduct property taxes you incurred for property used in your business. For example, you can deduct property taxes for the land and building where your business is situated.

• Travel

You can deduct travel expenses you incur to earn business and professional income. Travel expenses include public transportation fares, hotel accommodations, and meals.

• Utilities (telephone)

You can deduct expenses for telephone if you incurred the expenses to earn income.

• Utilities (light & power)

You can deduct expenses for utilities, such as gas, oil, electricity, and water, if you incurred the expenses to earn income.

• Fuel costs (except for motor vehicles)

You can deduct the cost of fuel (including gasoline, diesel, and propane), motor oil, and lubricants used in your business.

• Delivery, freight, and express

You can deduct the cost of delivery, freight, and express incurred in the year that relates to your business.

• Motor vehicle expenses (not including CCA)
• Commissions paid
• Convention and training expenses
• Gardening
• Snow removal

Interest-Loan

InterestType

The following options are applicable for the keyword InterestType.

• Do not add as an expense to interest
• Add as an expense to interest

Insurance-Co-Name

Policy-No

Company-StreetNo

Company-Street

Company-Suite

Company-City

Company-Province

Co-Postal-Code

For-Co-PostCode

Company-PhoneNo

Expense%Claim

Labour-Costs

For a rental property, enter the labour costs incurred during the year.

Report labour costs related to renovations, improvements, maintenance and repair work carried out during a taxation year on commercial premises or a rental building or other business premises located in Quebec. This information is required for Quebec only (form TP-1086.R.23.12).

Indicate whether the labour cost is an expense or a capital expenditure with the LabourType keyword. The Labour-Costs information will appear on the prescribed form TP-1086.R.23.12 whether it is a capital expenditure or not.

LabourType

The following options are applicable for the keyword LabourType.

• Do not add as an expense to maintenance & repairs
• Add as an expense to maintenance and repairs

Worker

This is required for completing the prescribed form TP-1086.R.23.12 for Quebec tax purposes(see Labour-Costs ).

Address.work

This is required for completing the prescribed form TP-1086.R.23.12 for Quebec tax purposes (see Labour-Costs ).

PostCode.wk

This is required for completing the prescribed form TP-1086.R.23.12 for Quebec tax purposes (see Labour-Costs ).

SIN-Worker

This is required for completing the prescribed form TP-1086.R.23.12 for Quebec tax purposes (see Labour-Costs ).

QST-Worker

This is required for completing the prescribed form TP-1086.R.23.12 for Quebec tax purposes (see Labour-Costs ).

Exp%Claim

The full amount incurred will be reported on Quebec form TP-1086.R.23.12 but only the portion claimed will be reported on the income statement (or equivalent forms).

Forest-Averag

The income-averaging measure allows you to deduct, in calculating your taxable income, an amount not exceeding 85% of $200 000 or of the amount determined according to the following formula, whichever is less:

(A - B) + (C - D)
For the purposes of this formula:

• the letter A represents the aggregate of the amounts each of which corresponds to the income of the eligible individual or qualified corporation, as applicable, for the taxation year from the individual's or corporation's certified commercial activities for the year in respect of a private forest;
• the letter B represents the aggregate of the amounts each of which corresponds to the loss of the eligible individual or qualified corporation, as applicable, for the taxation year from the individual's or corporation's certified commercial activities for the year in respect of a private forest;
• the letter C represents the aggregate of the amounts each of which corresponds to the share of the eligible individual or qualified corporation, as applicable, in the income of the qualified partnership for its fiscal period ending in the year from the partnership's certified commercial activities for the fiscal period in respect of a private forest;
• the letter D represents the aggregate of the amounts each of which corresponds to the share of the eligible individual or qualified corporation, as applicable, in the loss of the qualified partnership for its fiscal period ending in the year from the partnership's certified commercial activities for the fiscal period in respect of a private forest.

Income from the sale of timber to individuals (the sale of firewood, for example) cannot be averaged.

Supporting documents
Enclose a copy of the valid forest producer's certificate issued for the woodlot by the Ministère des Ressources naturelles et de la Faune.

The following options are applicable for the keyword Forest-Averag.

• Income-averaging for forest producers (bef. March 10, 2020)
• Income-averaging for forest producers (after March 9, 2020)

  See the Taxnet Pro™ T1 Line-by-Line Guide (subscription required):
Line 12600 - Rental income - Net
Line 13500 - Business income - Net
Line 13700 - Professional income - Net
Line 13900 - Commission income - Net
Line 14100 - Farming income - Net
Line 14300 - Fishing income - Net
Line 22200 - Deduction for CPP or QPP contributions (Schedule 8)

  See the CRA's general income tax guide:
Line 12600 - Rental income
Lines 13499 to 14300 - Self-employment income
Line 22200 - Deduction for CPP or QPP contributions on self-employment and other earnings

Woodlot-Location

Hist-ForestAver

ForestAver-Balance

PriorYrInclusion

Forest-Aver-Inc

The income-averaging measure allows you to deduct, in calculating your taxable income, a maximum of 85% of the income from the sale, to a purchaser with an establishment in Québec, of timber relating to the operation of a private woodlot. You must then include all or part of the amount deducted for a year in calculating your taxable income for one of the next four years.

Income from the sale of timber to individuals (the sale of firewood, for example) cannot be averaged.

Supporting documents
Enclose a copy of the valid forest producer's certificate issued for the woodlot by the Ministère des Ressources naturelles et de la Faune.

The following options are applicable for the keyword Forest-Aver-Inc.

• From certified commercial activities
• Share from the partnership (certif. commercial activities)

Portion-Deducted

Vehicle-Exp

The following options are applicable for the keyword Vehicle-Exp.

• Purchased vehicle
• Leased passenger vehicle
• Leased vehicle other than passenger vehicle

CCA-Class.car

Automobiles acquired after June 16, 1987, may have to be added to a separate CCA class if the cost exceeds a specific amount.

The following options are applicable for the keyword CCA-Class.car.

• Class 10 - 30%

Automobiles, except those you use as a taxi or in a daily rental business, including vans, trucks, tractors, wagons, and trailers. General-purpose electronic data-processing equipment (commonly called computer hardware) and systems software. Under proposed legislative changes of March 23, 2004, computer equipment and systems software will be included in new class 45 and the CCA rate will increase from 30% to 45%. The current rule allowing a separate class election is not available for equipment that qualifies for the 45% rate. However, you may elect to have the current rule apply for equipment that is acquired before 2005.

• Class 10.1 - 30%

A passenger vehicle (automobiles costing over $30 000); the depreciable cost is limited to $30 000. No recapture or terminal loss occurs on Class 10.1 disposals and half-year CCA is also allowed in the year of a disposal.

• Class 54 - 30% (after 18 Mar. 2019 & before 2028)

Class 54 was created for zero-emission vehicles acquired after March 18, 2019 that would otherwise be included in Class 10 or 10.1, with the same CCA rate of 30%.

There is a limit of $55,000 (plus federal and provincial sales taxes), for 2019, on the capital cost for each zero-emission passenger vehicle in Class 54. The limit will be reviewed annually. Class 54 may include both zero-emission passenger vehicles that do and do not exceed the prescribed threshold. However, unlike Class 10.1, Class 54 does not establish a separate class for each vehicle whose cost exceeds the threshold.

If a zero-emission passenger vehicle is disposed of to a person or partnership with whom you deal at arm's length, and its cost exceeds the prescribed amount, the proceeds of disposition will be adjusted based on a factor equal to the prescribed amount as a proportion of the actual cost of the vehicle. For dispositions made after July 29, 2019, based on proposed legislation, the actual cost of the vehicle will also be adjusted for the payment or repayment of government assistance.

The enhanced first-year allowance will be calculated by: :

• 100% after March 18, 2019, and before 2024
• 75% after 2023 and before 2026
• 55% after 2025 and before 2028

The enhanced first-year allowance will be calculated by :

• increasing the net capital cost addition to the new class for property that becomes available for use before 2028, and applying the prescribed CCA rate for the class as described below :
  • Applying the prescribed CCA rate of 30% to :
    • 2 1/3 times the net addition to the class for property that becomes available for use before 2024
    • 1 1/2 times the net addition to the class for property that becomes available for use in 2024 or 2025
    • 5/6 times the net addition to the class for property that becomes available for use after 2025 and before 2028
• suspending the existing CCA half-year rule

• Class 55 - 40% (after 18 Mar. 2019 & before 2028)

Class 55 was created for zero-emission vehicles acquired after March 18, 2019 otherwise included in Class 16, with the same CCA rate of 40%.

The enhanced first-year allowance will be calculated by: :

• 100% after March 18, 2019, and before 2024
• 75% after 2023 and before 2026
• 55% after 2025 and before 2028

The enhanced first-year allowance will be calculated by :

• increasing the net capital cost addition to the new class for property that becomes available for use before 2028, and applying the prescribed CCA rate for the class as described below :
  • Applying the prescribed CCA rate of 40% to :
    • 1 1/2 times the net addition to the class for property that becomes available for use before 2024
    • 7/8 times the net addition to the class for property that becomes available for use in 2024 or 2025
    • 3/8 times the net addition to the class for property that becomes available for use after 2025 and before 2028
• suspending the existing CCA half-year rule

• Class 56 - 30% (after 1 Mar. 2020 & before 2028)

Class 56 includes a temporary enhanced first-year CCA rate of 100% in respect of eligible zero-emission automotive equipment and vehicles that currently do not benefit from the accelerated rate provided by Classes 54 and 55. These vehicles and equipment would be included in new Class 56.

To be eligible for this first-year enhanced allowance, a vehicle or equipment must be automotive (i.e., self-propelled) and fully electric or powered by hydrogen. Vehicles or equipment that are powered partially by electricity or hydrogen (which includes hybrid vehicles and vehicles that require human or animal power for propulsion) would not be eligible.

Class 56 would apply to eligible zero-emission automotive equipment and vehicles that are acquired on or after March 2, 2020 and that become available for use before 2028, subject to a phase-out for equipment and vehicles that become available for use after 2023. A taxpayer would be able to claim the enhanced allowance in respect of an eligible zero-emission automotive equipment or vehicle only for the taxation year in which the vehicle first becomes available for use.

For taxation years 2020 to 2023 : rate = 100%
For taxation years 2024 to 2025 : rate = 75%
For taxation years 2026 to 2027 : rate = 55%
For taxation years 2028 and following : N/A

CCA would be deductible on any remaining balances in Class 56 on a declining-balance basis at a rate of 30%. An election would be available to forgo Class 56 treatment and instead include property in the Class in which it would otherwise be eligible.

• Class 57 - 8% (after 31 Dec. 2021 & before 2041)

Use this option to enter a property that is part of a CCUS project of a taxpayer and that is

• (a) equipment that is not required for hydrogen production, natural gas processing or acid gas injection and that
• (i) is to be used solely for capturing carbon dioxide
• (A) that would otherwise be released into the atmosphere, or
• (B) directly from the ambient air,
• (ii) prepares or compresses captured carbon for transportation, or,
• (iii) is power or heat production equipment that solely supports the CCUS process,
• (b) equipment that is to be used solely for transportation of captured carbon,
• (c) equipment that is to be used solely for storage of captured carbon in a geological formation (other than for enhanced oil recovery),
• (d) monitoring and control equipment that is to be used solely for the functioning of any equipment described in paragraphs (a) to (c),
• (e) a building or other structure all or substantially all of which is used, or to be used, for the installation or operation of equipment described in paragraphs (a) to (d), or
• (f) property that is used solely to
• (i) convert another property that would not otherwise be described in any of paragraphs (a) to (e) if the conversion causes the other property to satisfy the description under any of paragraphs (a) to (e), or
• (ii) refurbish property described in any of paragraphs (a) to (e).

• Class 58 - 20% (after 31 Dec. 2021 & before 2041)

Use this option to enter a property that is part of a CCUS project of a taxpayer, and that is

• (a) equipment to be used solely for using carbon dioxide in industrial production (including for enhanced oil recovery),
• (b) monitoring and control equipment to be used solely for the functioning of equipment included in paragraph (a),
• (c) a building or other structure all or substantially all of which is used, or to be used, for the installation or operation of equipment described in paragraph (a) or (b), or
• (d) property that is used solely to
ÿ
• (i) convert another property that would not otherwise be described in any of paragraphs (a) to (e) if the conversion causes the other property to satisfy the description under any of paragraphs (a) to (c), or
• (ii) refurbish property described in any of paragraphs (a) to (c).

• Class 59 - 100% (after 31 Dec. 2021 & before 2041)

Use this option to enter a property that is an expenditure incurred by the taxpayer after 2021 and that is

• (a) for the purpose of determining the existence, location, extent or quality of a geological formation to permanently store captured carbon (other than for enhanced oil recovery) in Canada, including such an expense that is
• (i) a geological, geophysical or geochemical expense, or
• (ii) an expense for environmental studies or community consultations, including studies or consultations that are undertaken to obtain a right, licence or privilege for the purpose of determining the existence, location, extent or quality of a geological formation to permanently store captured carbon (other than for enhanced oil recovery); and
• (b) an expense other than an expense
• (i) incurred in drilling or completing an oil or gas well or in building a temporary access road to, or preparing a site in respect of, any such well, or
• (ii) described in Class 60.

• Class 60 - 30% (after 31 Dec. 2021 & before 2041)

Use this option to enter a property that is an expenditure incurred after 2021 by the taxpayer in

• (a) drilling or converting a well in Canada for the permanent storage of captured carbon (other than for enhanced oil recovery),
• (b) drilling or completing a well for the permanent storage of captured carbon (other than for enhanced oil recovery) in Canada, building a temporary access road to the well or preparing a site in respect of the well, or
• (c) drilling or converting a well in Canada for the purposes of monitoring pressure changes or other phenomena in captured carbon permanently stored in a geological formation (other than for enhanced oil recovery).

DIEP-Asset

When immediate expensing was introduced in Budget 2019 for zero-emission vehicles, the associated CCA Class (Class 54) included a special recapture rule in order to address the potential for excessive CCA deductions while also recognizing the impact of the capital cost limit on allowable deductions. Given the recently proposed immediate expensing measure, a parallel change for passenger vehicles included in Class 10.1 will be introduced where the vehicle has been designated for immediate expensing.

Specifically, a special rule would apply to adjust the proceeds of disposition to be deducted from the undepreciated capital cost of the property on the disposition of such a vehicle. Under this rule, the proceeds of disposition would be adjusted based on a factor equal to the capital cost limit ($34,000, for vehicles acquired on or after January 1, 2022) as a proportion of the actual cost of the vehicle. Where the vehicle is not designated for immediate expensing treatment, the ordinary CCA and recapture rules for Class 10.1 property would continue to apply.

Model.ca

Make.ca

RegistrationNo.

Car-Level

The following options are applicable for the keyword Car-Level.

• Business expense

Use this option if the expense is claimed at the business level. If the client has a partnership, the expense will be claimed up to his percentage of the partnership.

• Partner expense

Use this option if the expense is claimed at the partner level. In this case, the partner will use the entire expense, regardless of the percentage of the partnership. The information will be used to calculate the partner's GST/HST/QST rebate(s), if applicable.

Purch-Date

UCC-Open   

Use the keyword Adjust-UCC to subtract from the UCC at the beginning of 2023, any investment tax credit that was claimed or was refunded in 2022. Also subtract any 2022 investment tax credit that was carried back to a year before 2022.

Use [Alt-J] to enter different values for other jurisdictions.

Kilometres   

This value is used by DT Max in fixing a percentage of use for business or employment.

Keeping a log of the business use of your client's vehicle is essential to claiming automobile expenses. Figure out the difference between the taxpayer's odometer reading from January 1st and December 31st to get the total kilometres driven through the year. Enter the total number and the business use number. This will provide a percentage of business use which will be used to calculate your client's total claim for business-related automobile expenses.

The following options are applicable for the keyword Kilometres.

• Kilometres travelled for business or work

Kilometres travelled in the year for business or employment purposes.

• Total kilometres travelled

Total kilometres travelled this year.

Expenses.car   

The following options are applicable for the keyword Expenses.car.

• Fuel costs
• Maintenance and repairs for the year
• Insurance premiums
• Supplementary business insurance
• Licence and registration
• Interest - passenger vehicle
• Interest - other than passenger vehicle
• Electricity for zero-emission vehicles
• Rental fees

Use this option to enter the short term leasing costs for a motor vehicle. These include, for instance, the costs paid to a car rental company.

• Parking fees
• Other expenses (please specify)

Days-Interest   

If nothing is entered here, DT Max will default to a full year. Use [Alt-J] to enter different values for other jurisdictions.

Leasing-Cost   

The following options are applicable for the keyword Leasing-Cost.

• Total current year lease costs
• Portion current year lease cost (pre-GST/HST changes)
• Lease payments already deducted (prior years)

Leasing-Date

The following options are applicable for the keyword Leasing-Date.

• Beginning of leasing contract
• End of leasing contract

List-Price   

Deemed-Interest

Indicate the amount of interest that would have been earned on the portion of the refundable amounts that exceeds $1,000. The refundable amounts must pertain to the leasing of a passenger vehicle and include all of the sums that the lessor is required to refund to the client under the leasing contract (e.g. a deposit the client gave to the lessor). However, refundable amounts do not include refunds or rebates granted under GST or QST legislation. Contact the MRQ to find out the prescribed interest rates in effect during the term of the leasing contract.

Here are some of the rates available:

Year	From		To	Rates
2004	1	January 1st, 2004,	March 31, 2004	3.0%
	2	April 1st, 2004,	June 30, 2004	3.0%
	3	July 1st, 2004,	September 30, 2004	2.0%
	4	October 1st, 2004,	December 31, 2004	3.0%
2005	1	January 1st, 2005,	March 31, 2005	3.0%
	2	April 1st, 2005,	June 30, 2005	3.0%
	3	July 1st, 2005,	September 30, 2005	3.0%
	4	October 1st, 2005,	December 31, 2005	3.0%
2006	1	January 1st, 2006,	March 31, 2006	3.0%
	2	April 1st, 2006,	June 30, 2006	4.0%
	3	July 1st, 2006,	September 30, 2006	4.0%
	4	October 1st, 2006,	December 31, 2006	5.0%
2007	1	January 1st, 2007,	March 31, 2007	5.0%
	2	April 1st, 2007,	June 30, 2007	5.0%
	3	July 1st, 2007,	September 30, 2007	5.0%
	4	October 1st, 2007,	December 31, 2007	5.0%
2008	1	January 1st, 2008,	March 31, 2008	4.0%
	2	April 1st, 2008,	June 30, 2008	4.0%
	3	July 1st, 2008,	September 30, 2008	3.0%
	4	October 1st, 2008,	December 31, 2008	3.0%
2009	1	January 1st, 2009,	March 31, 2009	3.0%
	2	April 1st, 2009,	June 30, 2009	3.0%
	3	July 1st, 2009,	September 30, 2009	3.0%
	4	October 1st, 2009,	December 31, 2009	3.0%
2010	1	January 1st, 2010,	March 31, 2010	3.0%
	2	April 1st, 2010,	June 30, 2010	3.0%
	3	July 1st, 2010,	September 30, 2010	3.0%
	4	October 1st, 2010,	December 31, 2010	3.0%
2011	1	January 1st, 2011,	March 31, 2011	3.0%
	2	April 1st, 2011,	June 30, 2011	3.0%
	3	July 1st, 2011,	September 30, 2011	3.0%
	4	October 1st, 2011,	December 31, 2011	3.0%
2012	1	January 1st, 2012,	March 31, 2012	3.0%
	2	April 1st, 2012,	June 30, 2012	3.0%
	3	July 1st, 2012,	September 30, 2012	3.0%
	4	October 1st, 2012,	December 31, 2012	3.0%
2013	1	January 1st, 2013,	March 31, 2013	3.0%
	2	April 1st, 2013,	June 30, 2013	3.0%
	3	July 1st, 2013,	September 30, 2013	3.0%
	4	October 1st, 2013,	December 31, 2013	4.0%
2014	1	January 1st, 2014,	March 31, 2014	3.0%
	2	April 1st, 2014,	June 30, 2014	3.0%
	3	July 1st, 2014,	September 30, 2014	3.0%
	4	October 1st, 2014,	December 31, 2014	3.0%
2015	1	January 1st, 2015,	March 31, 2015	3.0%
	2	April 1st, 2015,	June 30, 2015	3.0%
	3	July 1st, 2015,	September 30, 2015	3.0%
	4	October 1st, 2015,	December 31, 2015	3.0%
2016	1	January 1st, 2016,	March 31, 2016	3.0%
	2	April 1st, 2016,	June 30, 2016	3.0%
	3	July 1st, 2016,	September 30, 2016	3.0%
	4	October 1st, 2016,	December 31, 2016	3.0%
2017	1	January 1st, 2017,	March 31, 2017	3.0%
	2	April 1st, 2017,	June 30, 2017	3.0%
	3	July 1st, 2017,	September 30, 2017	3.0%
	4	October 1st, 2017,	December 31, 2017	3.0%
2018	1	January 1st, 2018,	March 31, 2018	3.0%
	2	April 1st, 2018,	June 30, 2018	4.0%
	3	July 1st, 2018,	September 30, 2018	4.0%
	4	October 1st, 2018,	December 31, 2018	4.0%
2019	1	January 1st, 2019,	March 31, 2019	4.0%
	2	April 1st, 2019,	June 30, 2019	4.0%
	3	July 1st, 2019,	September 30, 2019	4.0%
	4	October 1st, 2019,	December 31, 2019	4.0%
2020	1	January 1st, 2020,	March 31, 2020	4.0%
	2	April 1st, 2020,	June 30, 2020	4.0%
	3	July 1st, 2020,	September 30, 2020	3.0%
	4	October 1st, 2020,	December 31, 2020	3.0%
2021	1	January 1st, 2021,	March 31, 2021	3.0%
	2	April 1st, 2021,	June 30, 2021	3.0%
	3	July 1st, 2021,	September 30, 2021	3.0%
	4	October 1st, 2021,	December 31, 2021	3.0%
2022	1	January 1st, 2022,	March 31, 2022	3.0%
	2	April 1st, 2022,	June 30, 2022	3.0%
	3	July 1st, 2022,	September 30, 2022	4.0%
	4	October 1st, 2022,	December 31, 2022	5.0%
2023	1	January 1st, 2023,	March 31, 2023	6.0%
	2	April 1st, 2023,	June 30, 2023	7.0%
	3	July 1st, 2023,	September 30, 2023	7.0%
	4	October 1st, 2023,	December 31, 2023	7.0%

Two options are available for this entry:

THIS YEAR

To determine the amount to enter on line 15 of the work chart "Eligible automobile leasing expenses", calculate the interest at the prescribed rate for the year in question.

THIS YEAR AND PRIOR YEARS

To determine the amount to enter on line 5 of the work chart "Eligible automobile leasing expenses", calculate the interest at the prescribed rate for all the years since the amount became refundable.

The following options are applicable for the keyword Deemed-Interest.

• This year
• Prior years

Leasing-Reimb

Do not include refunds and rebates granted under GST or QST legislation.

Two options are available:

THIS YEAR

Enter the total reimbursement to which the client is entitled for the year with respect to leasing expenses.

THIS YEAR AND PRIOR YEARS

Enter the total reimbursement to which the client is entitled with respect to leasing expenses, calculated from the day the contract took effect to the end of the year in question.

The following options are applicable for the keyword Leasing-Reimb.

• This year
• Prior years

Leasing-OV   

Additions.db   

The amounts and descriptions entered here will appear on the CCA schedule. Use [Alt-J] to enter different values for other jurisdictions.

Additions-AIIP.db   

The Accelerated Investment Incentive will provide an enhanced first-year allowance for capital property that is subject to the CCA rules (referred to as eligible property), excluding certain property discussed in the Restrictions section below. The Accelerated Investment Incentive will also not apply to property in Classes 53 (manufacturing and processing machinery and equipment), 43.1 and 43.2 (clean energy equipment), which will rather be eligible for the full expensing measure introduced in this Statement.

The Accelerated Investment Incentive will effectively suspend the half-year rule (and equivalent rules for Canadian vessels and Class 13 property) in respect of eligible property. The allowance will then generally be calculated by applying the prescribed CCA rate for a class to one-and-a-half times the net addition to the class for the year. As a result, property currently subject to the half-year rule will, in essence, qualify for an enhanced CCA equal to three times the normal first-year allowance and property not currently subject to the half-year rule will qualify for an enhanced CCA equal to one-and-a-half times the normal first year allowance.

For example, prior to the introduction of the Accelerated Investment Incentive, a property in Class 8, which has a prescribed rate of 20 per cent, would be eligible for CCA of 10 per cent of the cost of the property in the year it becomes available for use, due to the half-year rule. Under the Accelerated Investment Incentive, the taxpayer will be eligible for CCA of 30 per cent of the cost of the property that is one-and-a-half times the CCA calculated using the prescribed rate of 20 per cent or three times the 10-per-cent CCA that could otherwise be claimed in the first year.

Restrictions
The Income Tax Act and the Income Tax Regulations include a series of rules designed to protect the integrity of the CCA regime and the tax system more broadly. These include rules related to limited partners, specified leasing properties, specified energy properties and rental properties. In certain circumstances, these rules can restrict a CCA deduction, or a loss in respect of such a deduction, that would otherwise be available. These integrity rules will continue to apply.

Certain additional restrictions will be placed on property that is eligible for the Accelerated Investment Incentive. Property that has been used, or acquired for use, for any purpose before it is acquired by the taxpayer will be eligible for the Accelerated Investment Incentive only if both of the following conditions are met:

• neither the taxpayer nor a non-arm's-length person previously owned the property; and
• the property has not been transferred to the taxpayer on a tax-deferred rollover basis.

The amounts and descriptions entered here will appear on the CCA schedule. Use [Alt-J] to enter different values for other jurisdictions.

Additions-AIIPQ.db

Following the initiatives announced by the federal government, to further encourage businesses to invest, the Québec government is announcing that, up until 2024, they will be able to immediately write off the full cost of investments in:

• computer hardware;
• manufacturing and processing equipment;
• clean energy generation equipment;
• intellectual property.

Under the current tax legislation, in the first taxation year in which a property is used, the capital cost allowance can be claimed for only half of the cost of the acquired property (half-year rule).

To enable businesses to write off 100% of the value of their investments in the first year, the half-year rule will no longer apply in respect of eligible investments.

Following the initiatives announced by the federal government, and to encourage businesses to increase their investments in Québec, the government is introducing an enhanced capital cost allowance.

• Businesses will be able to claim up to three times the amount of the capital cost allowance normally applicable in the first year for all types of investments not covered by the increase in the depreciation rate to 100%.

This new measure will apply to all businesses that make investments in any sector of the economy and in any region.

• It applies to property acquired after November 20, 2018 and before 2028.

Accelerated depreciation of property that is qualified intellectual property or general-purpose electronic data processing equipment
The proposed changes to the federal tax system regarding accelerated depreciation will be adjusted, for the purposes of Quebec's tax system, so that a taxpayer may deduct, for the taxation year in which the property becomes available for use, the full cost of acquisition of a property that is qualified intellectual property or general-purpose electronic data processing equipment.

Special rules applicable in the case of qualified intellectual property
Where an accelerated investment incentive property is qualified intellectual property that is property included in Class 14 of Schedule B to the Regulation respecting the Taxation Act, the product obtained by multiplying, by 0.5, the portion of the capital cost of the property for the taxpayer determined on the basis of the property's remaining life at the time the cost was incurred, for the taxation year in which the property becomes available for use, will be replaced, when the property becomes available for use before 2024, by an amount corresponding to the amount by which the capital cost of the property for the taxpayer exceeds that portion.

Where an accelerated investment incentive property is qualified intellectual property that is incorporeal capital property to which a capital cost allowance rate of 5% (Class 14.1) applies, the variable "0.5" used to determine the amount to be added to the undepreciated capital cost of property in that class, at the end of the taxation year in which the property becomes available for use (before any deduction in respect of the capital cost allowance for the year), will be replaced by the variable "19: where the property becomes available for use before 2024.

Special rules applicable in the case of general-purpose electronic data processing equipment
Where an accelerated investment incentive property is property composed of general-purpose electronic data processing equipment and systems software for that equipment, namely, property included in Class 50 of Schedule B to the Regulation respecting the Taxation Act, acquired after the day of publication of this information bulletin and used primarily in Québec in the course of carrying on a business, the variable "0.5" used to determine the amount to be added to the undepreciated capital cost of property in that class, at the end of the taxation year in which the property becomes available for use (before any deduction in respect of the capital cost allowance for the year), will be replaced by the variable "9/11" where the property becomes available for use before 2024.

The amounts and descriptions entered here will appear on the CCA schedule.

DIEP-Limit

DIEP-AIIP-Limit

DIEP-AIIPQ-Limit

Adjust-Curr   

Enter the amount of adjustments to be added or deducted to the capital cost in the year of acquisition.

GST and PST rebates received in the year of acquisition are examples of such adjustments. Use [Alt-J] to enter different values for other jurisdictions.

Adjust-Curr-AIIP   

Enter the amount of adjustments to be added or deducted to the capital cost in the year of acquisition.

GST and PST rebates received in the year of acquisition are examples of such adjustments. Use [Alt-J] to enter different values for other jurisdictions.

Adjust-Curr-AIIPQ

Enter the amount of adjustments to be added or deducted to the capital cost in the year of acquisition.

GST and PST rebates received in the year of acquisition are examples of such adjustments.

Adjust-UCC   

Enter the amount of adjustments to be added or deducted.

Adjustments would be necessary, for example, if there was an investment tax credit on a prior year addition, or if an investment tax credit was applied. Use [Alt-J] to enter different values for other jurisdictions.

ACB.cca   

This is the amount on which the taxpayer first claims CCA. The capital cost of a property is usually the total of:

• the purchase price (not including the cost of land, which is usually not depreciable;
• the part of your client's legal, accounting, engineering, installation, and other fees that relates to the buying or construction of the property (not including the part that applies to land);
• the cost of any additions or improvements he or she made to the property after you acquired it, if your client did not claim these costs as a current expense (such as modifications to accommodate persons with disabilities); and
• for a building, soft costs (such as interest, legal and accounting fees, and property taxes) related to the period that the client is constructing, renovating, or altering the building, if these expenses have not been deducted as current expenses.

Upon disposition of the depreciable property, remove the ACB from this class. Use [Alt-J] to enter different values for other jurisdictions.

ACB-Amount-CCA   

Disposition

Proceeds.cc   

Please be sure to enter the same description in the keyword ACB-Disp.cca so that the program can properly link disposed assets.

The proceeds of disposition usually mean the selling price of a property. The proceeds of disposition are the amounts that your client receives, or that the CRA considers your client to have received, when he disposes of his property. This could include compensation that your client receives for property that someone destroys, expropriates, steals, or damages. Special rules may apply if your client disposes of a building for less than both its undepreciated capital cost and capital cost. Use [Alt+J] to enter different values for other jurisdictions. Use [Alt-J] to enter different values for other jurisdictions.

Proceeds.cca   

The proceeds of disposition usually mean the selling price of a property. The proceeds of disposition are the amounts that your client receives, or that the CRA considers your client to have received, when he disposes of his property. This could include compensation that your client receives for property that someone destroys, expropriates, steals, or damages. Special rules may apply if your client disposes of a building for less than both its undepreciated capital cost and capital cost. Use [Alt+J] to enter different values for other jurisdictions. Use [Alt-J] to enter different values for other jurisdictions.

ACB-Disp.cca   

Please be sure to enter the same description in the keyword Proceeds.cc so that the program can properly link disposed assets.

DT Max will calculate the CCA claim, the depreciation recapture, and, if the class is liquidated, the terminal loss except for part XVII method.

If the class is liquidated, select the option "Yes" for the keyword Liquidate . Use [Alt+J] to enter different values for other jurisdictions. Use [Alt-J] to enter different values for other jurisdictions.

ACB-Disp.cc   

DT Max will calculate the CCA claim, the depreciation recapture, and, if the class is liquidated, the terminal loss except for part XVII method.

If the class is liquidated, select the option "Yes" for the keyword Liquidate . Use [Alt+J] to enter different values for other jurisdictions. Use [Alt-J] to enter different values for other jurisdictions.

NAL-Disp

Exp-Disp.cca   

The amount entered will be deducted from the proceeds of disposition and the net amount will be entered on the CCA schedule to determine the amount of the CCA class reduction. Use [Alt-J] to enter different values for other jurisdictions.

Part-ProcAIIP   

Part-ProcAIIPQ   

Part-ProcDIEP   

Part-ProcDIEPaiip   

Part-ProcDIEPaiipQ   

RecapturOV   

Depreciation recapture is calculated for all CCA classes (with the exception of class 10.1) and for the cumulative eligible capital account.

In the year of disposition, there is no depreciation recapture or terminal loss for a class 10.1 asset. Instead, the half-year rule applies and CCA may be claimed on the opening balance of the class at one-half the rate, as is allowed by the income tax rules. Use [Alt-J] to enter different values for other jurisdictions.

TermlossOV   

Terminal loss is calculated for all CCA classes (with the exception of class 10.1) and for the cumulative eligible capital account.

In the year of disposition, there is no depreciation recapture or terminal loss for a class 10.1 asset. Instead, the half-year rule applies and CCA may be claimed on the opening balance of the class at one-half the rate, as is allowed by the income tax rules. Use [Alt-J] to enter different values for other jurisdictions.

CalcCapGain.cca

The following options are applicable for the keyword CalcCapGain.cca.

• Calculate capital gain
• Do not calculate capital gain

Cap-GainOV.cca   

Liquidate

See ACB-Disp.cca for details.

HalfYear-CCA

See subsections 1100(2) to (2.4) of the federal Income Tax Act for exceptions to the half-year rule.

If the addition is not subject to the half-year rule, select "NO" with this keyword. The 50% rule does not apply when the available-for-use rules deny a CCA claim until the second tax year after the year your client acquired the property.

CCA-Limit   

You do not have to claim the maximum amount of CCA in any given year. You can claim any amount you like, from zero to the maximum allowed for the year. For example, if your client does not have to pay income tax for the year, you may not want to claim CCA. Claiming CCA reduces the balance of the class by the amount of CCA claimed. As a result, the CCA available for future years will be reduced.

DT Max will claim the lesser of the limit entered and the maximum allowable claim for the class, calculated on the CCA schedule. Use [Alt-J] to enter different values for other jurisdictions.

CCA-OV   

CarbonRebate.1

You can claim this rebate for the portion of the year that meets all of the following conditions:

• you operated a business inside of Yukon or, you earned income from a rental property in Yukon while you were a Yukon resident in 2023
• your business had assets that burned fossil fuels, other than diesel, in 2023
• you did not and will not receive a carbon tax rebate for 2023 for certain mining businesses

This refundable income tax credit will be based on the undepreciated capital cost (UCC) of assets used in your business in 2023, as shown in the capital cost allowance (CCA) schedule that you used to calculate your business income or your share of income from a partnership. There are 3 asset categories:

• category 1: buildings
• category 2: equipment that burns fossil fuels
• category 3: "green" assets, designed to consume non-fossil fuels

Eligible Yukon asset
An eligible Yukon asset is a property that meets all the following conditions:

• it is a depreciable property that you owned on December 31, 2023, and is included in an eligible class
• you used it throughout 2023 mainly in carrying on a business in Yukon
• it was situated in Yukon at all, or substantially all, times in 2023, unless it was cross-border transport equipment

Mining-CarbonReb

Cross-Border.2

• you used it in 2023 mainly to transport passengers or goods between a place in Yukon and a place outside of Yukon
• you elected to treat it as cross-border transport equipment

NetFuel-Yukon

NetFuel-Worldwide

CCA-Class

DT Max will allow you to enter separate classes.

Separate classes are allowed for property of the same class relating to separate businesses, and for property of the same class held for different purposes, i.e. earning income from business vs. earning income from property (see federal income tax regulation 1101).

Capital cost allowances are listed by group. This enables DT Max to calculate each CCA group separately and allows you to allocate as much CCA as required to any business or rental property. It also enables DT Max to calculate recapture of CCA and terminal losses, and to allow for separate classes when required.

You must be careful to only use separate classes for separate businesses, or when otherwise required. You should examine your files to make sure that CCA, recapture of CCA and terminal loss have properly been allocated. Ensure that all CCA has been allocated.

DT Max will warn you of any discrepancies that have been detected.

The following options are applicable for the keyword CCA-Class.

• Class 1 - 4%

Most buildings bought after 1987, including components such as wiring, plumbing, heating, and cooling systems. Buildings with a cost exceeding $50,000 should be entered in separate classes.

• Class 1 - 6% (after March 18, 2007)

Other non-residential buildings acquired by a taxpayer after March 18, 2007.

To be eligible for one of the additional allowances, a building will be required to be placed into a separate class. If the taxpayer forgoes the separate class, the current rate of 4% will apply.

Natural gas distribution pipelines acquired after March 18, 2007. Natural gas distribution pipelines are pipelines through which natural gas is carried from transmission pipelines to consumers. They include both distribution mains, which run to the edge of a customer's property, and service lines, which run from the edge of the customer's property to the house or building.

• Class 1 - 10% (after March 18, 2007)

Eligible non-residential buildings acquired after March 18, 2007, used for manufacturing or processing in Canada of goods for sale or lease will be increased to 10%.

To be eligible for one of the additional allowances, a building will be required to be placed into a separate class. If the taxpayer forgoes the separate class, the current rate of 4% will apply.

In order to be eligible for the 6% additional allowance, at least 90% of a building (measured by square footage) must be used for the designated purpose at the end of the tax year. Manufacturing and processing buildings that do not meet the 90% use test will be eligible for the additional 2% allowance if at least 90% of the building is used for non-residential purposes at the end of the tax year.

• Class 1 - 10% (LNG after February 19, 2015)

Accelerated CCA for liquefied natural gas (LNG) after February 19, 2015 and before 2025.

Non-residential buildings at a facility that liquefies natural gas are eligible for a CCA rate of 4% plus the lesser of 6% and income from eligible liquefaction activities attributable to that facility

• Class 2 - 6%

Electrical generating equipment, pipelines, and plant and equipment used in the production or distribution of electrical energy or gas or in the distribution of water or heat.

• Class 3 - 5%

Most buildings including components bought after 1978 and before 1988. However, you may have to include part of the cost of additions made after 1987 in class 1. For more details, see Interpretation Bulletin IT-79, Capital Cost Allowance - Buildings or Other Structures. Buildings acquired before 1988 with a cost exceeding $50,000 should be entered in separate classes.

• Class 4 - 6%

Railway or trolley bus systems.

• Class 5 - 10%

Pulp mills acquired before 1962.

• Class 6 - 10%

Frame, log, stucco on frame, galvanized iron, or corrugated metal buildings that do not have any footings below the ground. Class 6 also includes fences and greenhouses. Buildings with a cost exceeding $50,000 should be entered in separate classes.

• Class 7 - 15%

Canoes, rowboats, and most other vessels and their motors, furniture, and fittings. For more details, see Interpretation Bulletin IT-267, Capital Cost Allowance - Vessels.

• Class 8 - 20%

Property that you did not include in any other class. Some examples are fixtures, furniture, machinery, photocopiers, refrigeration equipment, telephones, and tools costing $200 or more. Class 8 also includes outdoor advertising signs you bought after 1987. Under proposed legislative changes, data network infrastructure equipment acquired after March 22, 2004 (usually included in class 8 at 20%) will be included in a new class 46 with a 30% CCA rate.

• Class 8 - 20% (Class 8.1 - 33 1/3%)

A drawing, print, engraving, sculpture, painting or other work of art of the same nature by a Canadian artist in order to display it at his place of business.

• Class 9 - 25%

Aircraft, including furniture or equipment attached to the aircraft, and spare parts.

• Class 10 - 30%

Automobiles, except those you use as a taxi or in a daily rental business, including vans, trucks, tractors, wagons, and trailers. General-purpose electronic data-processing equipment (commonly called computer hardware) and systems software. Under proposed legislative changes of March 23, 2004, computer equipment and systems software will be included in new class 45 and the CCA rate will increase from 30% to 45%. The current rule allowing a separate class election is not available for equipment that qualifies for the 45% rate. However, you may elect to have the current rule apply for equipment that is acquired before 2005.

• Class 10.1 - 30%

A passenger vehicle (automobiles costing over $30 000); the depreciable cost is limited to $30 000. No recapture or terminal loss occurs on Class 10.1 disposals and half-year CCA is also allowed in the year of a disposal.

• Class 11 - 35%

Advertising signs and billboards which are used to earn rental income and were acquired before 1988.

• Class 12 - 100%

China, cutlery, kitchen utensils that cost under $500, linen, uniforms, dies, jigs, moulds, cutting or shaping parts of a machine, tools and medical or dental instruments that cost under $500, computer software (except systems software), and video cassettes bought after February 15, 1984, that you rent and do not expect to rent to any one person for more than 7 days in a 30-day period.

• Class 13 SL

Leasehold interest - You can claim CCA on a leasehold interest, but the maximum rate depends on the type of leasehold interest and the terms of the lease. Leasehold improvements are amortized on a straight-line basis over the number of years in the lease term. The minimum amortization period is 5 years and the maximum is 40 years. If the number of months entered for an addition in the Additions.sl keyword is not within this range, DT Max will use the minimum or maximum allowed, as is applicable.

Separate classes are required for leasehold interests related to buildings erected on leased land.

• Class 14 SL

Patents, franchises, concessions, or licences for a limited period. Your CCA is whichever of the following amounts is less: 1. capital cost of the property spread out over the life of the property; or 2. UCC of the property of that class at the end of the taxation year.

• Class 14.1 - 7% (other before 2017)

Enter cumulative eligible capital balances of separate businesses, other than farms, in separate CCA-Class groups. Table - Transitional rules: CECA balances prior to January 1, 2017 and Class 14.1

CECA balances on December 31, 2016	CECA's account balances are transferred on January 1, 2017 to the new CCA class. The UCC on January 1, 2017 must equal the amount that would have been the balance of the CECA account on January 1, 2017.>
The total capital cost of all property included in Class 14.1	In order to be able to calculate the tax consequences (recapture of depreciation and capital gains) when disposing of property included in Class 14.1, it is necessary to establish the capital cost of the acquired properties. The capital cost of all preperty included in Class 14.1 in accordance with paragraph 13(38)a) ITA, is deemed to be the amount determined by the formula 4/3 x (A + B + C). A = The positive balance of the CECA B = The amount of deductions made in the past on the CECA account (depreciation) C = The negatve balance of the CECA
The capital cost of each property included in Class 14.1	The Act requires that the capital cost be allocated between goodwill and each identifiable property included in this new depreciation class [ITA 13(37)b)].
The capital cost allowance deemed taken	In order to be able to eventually calculate the tax consequences (depreciation recovery and capital gain) when disposing of a Class 14.1 property, it is necessary to determine the capital cost allowance deemed taken. The amount of depreciation deemed taken as per paragraph 13(38)c) of the ITA will be deemed to be equal to (capital cost determined as per paragraph 13(38)a) - CEC account balance).
The depreciation rate	The depreciation rate will be 7% for the first 10 years (for tax years ending before 2027).
Additional depreciation (subparagraph 1100(1)c.1) ITR)	To allow the elimination of small initial balances, the CCA for expenses incurred before 2017 corresponds to the greater of: 1) $500 (without exceeding the UCC), or 2) The amount that would otherwise be deductible for the year.
How to process receipts for property or expenditures made before January 1, 2017?	The balance for the new CCA class must be reduced to a rate of 75%. The UCC for new Class 14.1 must be raised to 25% of the lesser between the proceeds of disposition and the cost of the property that was disposed of.
Repayment, after December 31, 2016, of government assistance received before January 1, 2017	Subsection 13(7.41) of the ITA provides that, if a taxpayer has repaid, after December 31, 2016, government assistance that was received before before January 1, 2017, the repayment amount is: 1) Deemed to have been repaid immediately before January 1, 2017, for the purposes of the capital cost of the class and the property. 2) The capital cost of the property and the UCC for Class 14.1 will be retroactively adjusted upwards as of January 1, 2017. 3) No depreciation may be taken on this UCC increase before repayment.

• Class 14.1 - 7% (farming or fishing before 2017)

Enter cumulative eligible capital balances of separate farm businesses in separate CCA-Class groups.

Table - Transitional rules: CECA balances prior to January 1, 2017 and Class 14.1

CECA balances on December 31, 2016	CECA's account balances are transferred on January 1, 2017 to the new CCA class. The UCC on January 1, 2017 must equal the amount that would have been the balance of the CECA account on January 1, 2017.>
The total capital cost of all property included in Class 14.1	In order to be able to calculate the tax consequences (recapture of depreciation and capital gains) when disposing of property included in Class 14.1, it is necessary to establish the capital cost of the acquired properties. The capital cost of all preperty included in Class 14.1 in accordance with paragraph 13(38)a) ITA, is deemed to be the amount determined by the formula 4/3 x (A + B + C). A = The positive balance of the CECA B = The amount of deductions made in the past on the CECA account (depreciation) C = The negatve balance of the CECA
The capital cost of each property included in Class 14.1	The Act requires that the capital cost be allocated between goodwill and each identifiable property included in this new depreciation class [ITA 13(37)b)].
The capital cost allowance deemed taken	In order to be able to eventually calculate the tax consequences (depreciation recovery and capital gain) when disposing of a Class 14.1 property, it is necessary to determine the capital cost allowance deemed taken. The amount of depreciation deemed taken as per paragraph 13(38)c) of the ITA will be deemed to be equal to (capital cost determined as per paragraph 13(38)a) - CEC account balance).
The depreciation rate	The depreciation rate will be 7% for the first 10 years (for tax years ending before 2027).
Additional depreci ation (subparagraph 1100(1)c.1) ITR)	To allow the elimination of small initial balances, the CCA for expenses incurred before 2017 corresponds to the greater of: 1) $500 (without exceeding the UCC), or 2) The amount that would otherwise be deductible for the year.
How to process receipts for property or expenditures made before January 1, 2017?	The balance for the new CCA class must be reduced to a rate of 75%. The UCC for new Class 14.1 must be raised to 25% of the lesser between the proceeds of disposition and the cost of the property that was disposed of.
Repayment, after December 31, 2016, of government assistance received before January 1, 2017	Subsection 13(7.41) of the ITA provides that, if a taxpayer has repaid, after December 31, 2016, government assistance that was received before before January 1, 2017, the repayment amount is: 1) Deemed to have been repaid immediately before January 1, 2017, for the purposes of the capital cost of the class and the property. 2) The capital cost of the property and the UCC for Class 14.1 will be retroactively adjusted upwards as of January 1, 2017. 3) No depreciation may be taken on this UCC increase before repayment.

• Class 14.1 - 5% (after December 31, 2016)

Property to be included in Class 14.1

1. is goodwill;
2. was eligible capital property of the taxpayer immediately before January 1, 2017 and is owned by the taxpayer at the beginning of that day; or
3. is acquired after 2016, other than
   1. property that is tangible or, for civil law, corporeal property,
   2. property that is not acquired for the purpose of gaining or producing income from business,
   3. property in respect of which any amount is deductible (otherwise than as a result of being included in this class) in computing the taxpayer's income from the business,
   4. property in respect of which any amount is not deductible in computing the taxpayer's income from the business because of any provision of the Act (other than paragraph 18(1)(b)) or these Regulations,
   5. an interest in a trust,
   6. an interest in a partnership,
   7. a share, bond, debenture, mortgage, hypothecary claim, note, bill or other similar property, or
   8. property that is an interest in, or for civil law a right in, or a right to acquire, a property described in any of subparagraphs (i) to (vii).

However, since there is only one Class 14.1 and this class is closely associated with the operation of the business, a terminal loss in regards to Class 14.1 can only be claimed if the business has ceased its operations (following a sale or a cessation of its activities). As a matter of fact, under paragraph 13(34)a) of the ITA, if a taxpayer carries on a particular business, there is deemed to be a single goodwill property in respect of the particular business.

The presence of this goodwill will make it impossible to claim a terminal loss, since the class will not be empty.

Moreover, ITA 20(16.1)c) provides that no terminal loss may be deducted in a taxation year in respect of property included in Class 14.1 of Schedule II of the Income Tax Regulations, except when the taxpayer has ceased to carry on the business to which this class relates.

Chart - Comparison of tax rules applicable to eligible capital property before and after January 1, 2017

Tax rules	Before 2017	After 2016
Definition	Eligible capital property has a separate tax treatment from depreciable property.	Eligible capital property is considered depreciable property.
Acquisition of eligible capital property	3/4 of capital expenditure is added to the CEC account.	100% of capital expenditure is added to Class 14.1.
Depreciation rate	7% of the CEC account.	5% of the UCC balance. Transitional rules for CEC account balances as of December 31, 2016.
Half-year rule	Not applicable.	Applicable in the year of acquisition.
Short fiscal year	The expense is deductible in proportion to the number of days out of 365 in the taxation year.	The expense is deductible in proportion to the number of days out of 365 in the taxation year.
Disposition of eligible capital property	Must deduct 3/4 of the proceeds of disposition from the CEC account.	Must deduct from the UCC the lesser between the capital cost and the proceeds of disposition.
Terminal loss	Possible if the class is empty.	Possible only if the business has ceased its operations.
The CEC account balance (UCC) is negative following a disposition.	Disposition results in business income. It is necessary to calculate the depreciation recovery which will be added to the business income.	Disposition results in a capital gain. It is necessary to calculate the depreciation recovery which will be added to the business income.
The CEC account balance (UCC) is positive following a disposition.	Carry on the depreciation of the account balance.	Carry on the depreciation of the account balance.
Incorporation expenses	3/4 of the expense is added to the CEC account.	The first $3,000 of these incorporation expenses are considered operating expenses, the difference is added to the UCC.

• Class 15 SL

Woods assets are depreciated based on the number of cords or board feet cut in the taxation year compared to the undepreciated capital cost of the property. Enter the rate to be used in the Timber-Rate keyword in this group.

• Class 16 - 40%

Taxis, vehicles you use in a daily car-rental business, coin-operated video games or pinball machines acquired after February 15, 1984, and freight trucks acquired after December 6, 1991, that are rated higher than 11,788 kilograms.

• Class 17 - 8%

Roads, parking lots, sidewalks, airplane runways, storage areas, or similar surface construction.

• Class 18 - 60%

Pre-May 26/76 motion picture films. In Quebec only, new transport truck acquired after March 30, 2010 with a gross weight of more than 11,788 kg.

• Class 19 - 50% SL

Property otherwise included in Class 8 which was acquired between June 14, 1963 and December 31, 1966. The CCA rate is 20% on a declining balance basis for non-residents and 50% on a straight-line basis for Canadian-owned corporations.

• Class 20 - 20% SL

Certified Class 1- or Class 3-type buildings acquired between June 12, 1963 and March 31, 1967 or approved capital costs under the Area Development Incentives Act.

• Class 21 - 50% SL

Certified Class 8- or Class 19-type property acquired between June 12, 1963 and March 31, 1967 for use in a certified business or approved capital costs under the Area Development Incentives Act.

• Class 22 - 50%

Most power-operated, movable equipment you bought before 1988 that you use for excavating, moving, placing, or compacting earth, rock, concrete, or asphalt.

• Class 23 - 100%

Leasehold interests, licenses and buildings on or with respect to the Montreal or Vancouver Expo sites.

• Class 24 - 50% SL

Pollution control equipment. The Ontario Current Cost Adjustment is available for purchases of Class 24 and 27 equipment made in or after 1992.

• Class 25 - 100%

Pre-Oct.23/68 property acquired by Crown or municipally-owned corporations.

• Class 26 - 5%

Catalysts and pre-May 22/79 deuterium-enriched water.

• Class 27 - 50% SL

Pollution control equipment. The Ontario Current Cost Adjustment is available for purchases of Class 24 and 27 equipment made in or after 1992.

• Class 28 - 30%

Pre-1988 mining equipment used for mine expansion and development.

• Class 29 - 50% SL

Pre-1988 manufacturing or processing equipment. Post-1988 equipment should be included in Class 39 (pre-Feb.26/92) or Class 43 (post-Feb.25/92).

• Class 30 - 40%

Pre-1988 telecommunications satellites or space crafts.

• Class 31 - 5%

Class 31 and 32 pre-June 18/87 certified MURB buildings with a cost exceeding $50,000 should be entered in separate classes.

• Class 32 - 10%

Class 31 and 32 pre-June 18/87 certified MURB buildings with a cost exceeding $50,000 should be entered in separate classes.

• Class 33 - 15%

Timber resource property.

• Class 34 - 50% SL

Certified energy conservation or energy-efficient equipment.

• Class 35 - 7%

Railway cars.

• Class 36 - 0%

Property acquired by virtue of a lease option agreement at a price less than fair market value when lease rental payments were previously deducted on the property. The excess of the deemed Adjusted Cost Base (see Fed.ITA 13(5.2)) over the purchase price is deemed to be CCA which was previously claimed on the property.

No CCA can be claimed while the property is in Class 36 but recapture can occur on the property's disposal.

• Class 37 - 15%

Amusement park land improvements, buildings and equipment.

• Class 38 - 30%

Most power-operated, movable equipment you bought after 1987 and use for excavating, moving, placing, or compacting earth, rock, concrete, or asphalt.

You can choose to keep an outdoor advertising sign and any property you would usually include in class 38 in a separate class. To do this, attach a letter to your income return for the year you bought the property. In the letter, list the properties you are including in a separate class.

• Class 39 - 25% (prior to 02-26-92)

Manufacturing or processing equipment acquired after 1988 and before Feb.26/92. Use Class 43 if the equipment was acquired after Feb.25/92.

C.C.A. for Class 39 is 35% in 1989, 30% in 1990 and 25% after 1990. DT Max will calculate a prorated CCA rate when the corporation's taxation year straddles the date on which the rate changed.

The Ontario Current Cost Adjustment is available for purchases of Class 39 manufacturing & processing machinery and equipment made before Jan.1/92.

• Class 40 - 30%

1988-1990 acquired powered industrial lift trucks, rental portable tools and general-purpose electronic data processing equipment used in the manufacturing and processing of goods.

• Class 41 - 25%

Pre-1987 mining operations-related machinery and equipment, gas or oil well equipment and heavy oil processing equipment.

Most capital assets acquired by mining and oil and gas companies are included in Class 41, which qualifies for a depreciation rate of 25% on a declining balance basis. Class 41 includes:

• All buildings, structures, machinery and equipment used in the extraction and processing (concentrating, smelting and refining) of a mineral resource that is not beyond the prime metal stage or its equivalent;
• Motive equipment and railway facilities (excluding rolling stock) used to produce income from a mine;
• Loading and unloading assets used at the mine or at the mineral processing facilities;
• Electrical generating and distributing equipment used for mining;
• Assets that provide services to the mine or to the community where a substantial portion of the persons employed at the mine reside (hospital, school, airport, fire hall, etc.).

Accelerated Capital Cost Allowance (ACCA)
The amount of ACCA that can be claimed in a year is equal to the balance of unclaimed capital cost in the class, but it cannot exceed the income of the mine. The amount claimed is optional in that any amount can be claimed up to the allowed maximum rate.

• Class 41.1 - 25% (after March 18, 2007)

Oil sands property acquired after March 18, 2007 is generally included in new CCA Class 41.1.

New subsection 1101(4e) prescribes a separate class for single mine properties that are included in paragraph (a) of Class 41.1. Properties included in paragraph (a) of new Class 41.1 remain eligible for the accelerated CCA until 2010.

Beginning in 2011, the accelerated CCA is phased out and the amount of the additional allowance will be reduced each year, regardless of whether the constraint is the income from the mine or the amount of the undepreciated capital cost. The percentage allowed, as accelerated CCA, in each calendar year will be 90% in 2011, 80% in 2012, 60% in 2013 and 30% in 2014 of the amount otherwise allowable as accelerated CCA. No accelerated CCA will be allowed after 2014 and only the regular 25-per-cent CCA rate will apply after 2014.

Under current rules, accelerated CCA is available in the form of an additional allowance which supplements the regular 25-per-cent CCA rate. It allows a taxpayer to deduct, in computing income for a taxation year, up to 100-per-cent of the undepreciated capital cost of the properties included in the separate Class 41, not exceeding the taxpayer's income for the year from the mine (calculated after deducting the regular CCA).

• Class 41.2 - 25% (after March 20, 2013 & before 2021)

Class 41.2 (25 per cent CCA rate) includes property other than an oil sands property or eligible mine development property,

(a) that is acquired by a taxpayer after March 20, 2013 and before 2021 and that, if acquired on March 20, 2013, would be included in paragraph (a) or (a.1) of Class 41; or

(b) that is acquired by a taxpayer after 2020 and that, if acquired on March 20, 2013, would be included in paragraph (a) or (a.1) of Class 41.

These separate classes of properties remain eligible for the full accelerated CCA until 2016. Beginning with 2017, accelerated CCA is phased out and the amount of the additional allowance will be reduced each year, regardless of whether the constraint is the level of project income or the amount of the undepreciated capital cost. The percentage allowed, as accelerated CCA, in each calendar year will be 90% for 2017, 80% for 2018, 60% for 2019 and 30% for 2020 of the amount otherwise allowable as accelerated CCA. No accelerated CCA will be allowed and only the regular 25% CCA rate will apply for assets in this Class after 2020.

Eligible mine development property acquired after March 20, 2013 and before 2018 can be included in Class 41.

• Class 42 - 12%

Fibre optic cables.

• Class 43 - 30%

Manufacturing or processing equipment acquired after Feb.25/92.

• Class 43.1 - 30%

Includes prescribed energy conservation property (CRCE). This class is broadened to include biogas production equipment and distribution equipment acquired on or after February 23, 2005.

• Class 43.2 - 50%

Includes certain high-efficiency cogeneration systems and renewable energy generation equipment acquired on or after February 23, 2005, and before 2025. This accelerated CCA rate will also apply to biogas production equipment and distribution equipment used in district energy systems that rely on efficient cogeneration, acquired on or after February 23, 2005, and before 2025.

• Class 44 - 25%

Patents and rights to use patented information.

• Class 45 - 45%

General-purpose electronic data processing equipment and certain ancillary property acquired after March 22, 2004, other than property that is acquired before 2005 in respect of which a taxpayer elects to have the property included in a separated Class 10.

• Class 46 - 30%

Data network infrastructure equipment and systems software for that equipment acquired after March 22, 2004 that would otherwise be included in Class 8 because of the default provision in paragraph (i) of that Class. For details on the definition of data network infrastructure equipment, see the note accompanying that new definition in amended subsection 1104(2) of the Regulations.

• Class 47 - 8%

Includes transmission and distribution equipment and structures (excluding buildings) of a distributor of electrical energy acquired on or after February 23, 2005.

• Class 47 - 30% (LNG after February 19, 2015)

Accelerated CCA for liquefied natural gas (LNG) after February 19, 2015 and before 2025.

Eligible property used for the liquefaction of natural gas are eligible for a CCA rate of 8% plus the lesser of 22% and income from eligible liquefaction activities attributable to that facility.

• Class 48 - 15%

Includes combustion turbines that generate electricity (including associated burners and compressors) for property acquired on or after February 23, 2005. A separate class election (presently available for such equipment eligible for the 8% rate) is eliminated for equipment eligible for the 15% CCA rate (class 48).

• Class 49 - 8%

Includes transmission pipelines for petroleum, natural gas, or related hydrocarbons, including control and monitoring devices, valves, and other ancillary equipment. The 8% CCA rate for transmission pipelines will apply to equipment acquired on or after February 23, 2005. A separate class election is generally available for eligible equipment acquired on or after February 23, 2005.

• Class 50 - 55% (after March 18, 2007)

Computer equipment and systems software acquired after March 18, 2007.

• Class 51 - 6% (after March 18, 2007)

Natural gas distribution pipelines acquired after March 18, 2007. Natural gas distribution pipelines are pipelines through which natural gas is carried from transmission pipelines to consumers. They include both distribution mains, which run to the edge of a customer's property, and service lines, which run from the edge of the customer's property to the house or building.

• Class 52 - 100% (after 27 Jan. 2009 & bef. Feb. 2011)

Include in Class 52 with a CCA rate of 100% (with no half-year rule) general-purpose electronic data-processing equipment (commonly called computer hardware) and systems software for that equipment, including ancillary data-processing equipment, if acquired after January 27, 2009, and before February 2011. To qualify for this rate, the asset must also:

• be situated in Canada;
• not have been used, or acquired for use, for any purpose before it is acquired by the taxpayer; and
• be acquired by the taxpayer:
  • for use in a business carried on by the taxpayer in Canada or for the purposes of earning income from property situated in Canada; or
  • for lease by the taxpayer to a lessee for use by the lessee in a business carried on by the lessee in Canada or for the purpose of earning income from property situated in Canada.

• Class 53 - 50% (after 31 Dec. 2015 & before 2026)

Class 53 includes machinery and equipment used in Canadian manufacturing acquired after 2015 and before 2026.

• Class 54 - 30% (after 18 Mar. 2019 & before 2028)

Class 54 was created for zero-emission vehicles acquired after March 18, 2019 that would otherwise be included in Class 10 or 10.1, with the same CCA rate of 30%.

There is a limit of $55,000 (plus federal and provincial sales taxes), for 2019, on the capital cost for each zero-emission passenger vehicle in Class 54. The limit will be reviewed annually. Class 54 may include both zero-emission passenger vehicles that do and do not exceed the prescribed threshold. However, unlike Class 10.1, Class 54 does not establish a separate class for each vehicle whose cost exceeds the threshold.

If a zero-emission passenger vehicle is disposed of to a person or partnership with whom you deal at arm's length, and its cost exceeds the prescribed amount, the proceeds of disposition will be adjusted based on a factor equal to the prescribed amount as a proportion of the actual cost of the vehicle. For dispositions made after July 29, 2019, based on proposed legislation, the actual cost of the vehicle will also be adjusted for the payment or repayment of government assistance.

The enhanced first-year allowance will be calculated by: :

• 100% after March 18, 2019, and before 2024
• 75% after 2023 and before 2026
• 55% after 2025 and before 2028

The enhanced first-year allowance will be calculated by :

• increasing the net capital cost addition to the new class for property that becomes available for use before 2028, and applying the prescribed CCA rate for the class as described below :
  • Applying the prescribed CCA rate of 30% to :
    • 2 1/3 times the net addition to the class for property that becomes available for use before 2024
    • 1 1/2 times the net addition to the class for property that becomes available for use in 2024 or 2025
    • 5/6 times the net addition to the class for property that becomes available for use after 2025 and before 2028
• suspending the existing CCA half-year rule

• Class 55 - 40% (after 18 Mar. 2019 & before 2028)

Class 55 was created for zero-emission vehicles acquired after March 18, 2019 otherwise included in Class 16, with the same CCA rate of 40%.

The enhanced first-year allowance will be calculated by: :

• 100% after March 18, 2019, and before 2024
• 75% after 2023 and before 2026
• 55% after 2025 and before 2028

The enhanced first-year allowance will be calculated by :

• increasing the net capital cost addition to the new class for property that becomes available for use before 2028, and applying the prescribed CCA rate for the class as described below :
  • Applying the prescribed CCA rate of 40% to :
    • 1 1/2 times the net addition to the class for property that becomes available for use before 2024
    • 7/8 times the net addition to the class for property that becomes available for use in 2024 or 2025
    • 3/8 times the net addition to the class for property that becomes available for use after 2025 and before 2028
• suspending the existing CCA half-year rule

• Class 56 - 30% (after 1 Mar. 2020 & before 2028)

Class 56 includes a temporary enhanced first-year CCA rate of 100% in respect of eligible zero-emission automotive equipment and vehicles that currently do not benefit from the accelerated rate provided by Classes 54 and 55. These vehicles and equipment would be included in new Class 56.

To be eligible for this first-year enhanced allowance, a vehicle or equipment must be automotive (i.e., self-propelled) and fully electric or powered by hydrogen. Vehicles or equipment that are powered partially by electricity or hydrogen (which includes hybrid vehicles and vehicles that require human or animal power for propulsion) would not be eligible.

Class 56 would apply to eligible zero-emission automotive equipment and vehicles that are acquired on or after March 2, 2020 and that become available for use before 2028, subject to a phase-out for equipment and vehicles that become available for use after 2023. A taxpayer would be able to claim the enhanced allowance in respect of an eligible zero-emission automotive equipment or vehicle only for the taxation year in which the vehicle first becomes available for use.

For taxation years 2020 to 2023 : rate = 100%
For taxation years 2024 to 2025 : rate = 75%
For taxation years 2026 to 2027 : rate = 55%
For taxation years 2028 and following : N/A

CCA would be deductible on any remaining balances in Class 56 on a declining-balance basis at a rate of 30%. An election would be available to forgo Class 56 treatment and instead include property in the Class in which it would otherwise be eligible.

• Class 57 - 8% (after 31 Dec. 2021 & before 2041)

Use this option to enter a property that is part of a CCUS project of a taxpayer and that is

• (a) equipment that is not required for hydrogen production, natural gas processing or acid gas injection and that
• (i) is to be used solely for capturing carbon dioxide
• (A) that would otherwise be released into the atmosphere, or
• (B) directly from the ambient air,
• (ii) prepares or compresses captured carbon for transportation, or,
• (iii) is power or heat production equipment that solely supports the CCUS process,
• (b) equipment that is to be used solely for transportation of captured carbon,
• (c) equipment that is to be used solely for storage of captured carbon in a geological formation (other than for enhanced oil recovery),
• (d) monitoring and control equipment that is to be used solely for the functioning of any equipment described in paragraphs (a) to (c),
• (e) a building or other structure all or substantially all of which is used, or to be used, for the installation or operation of equipment described in paragraphs (a) to (d), or
• (f) property that is used solely to
• (i) convert another property that would not otherwise be described in any of paragraphs (a) to (e) if the conversion causes the other property to satisfy the description under any of paragraphs (a) to (e), or
• (ii) refurbish property described in any of paragraphs (a) to (e).

• Class 58 - 20% (after 31 Dec. 2021 & before 2041)

Use this option to enter a property that is part of a CCUS project of a taxpayer, and that is

• (a) equipment to be used solely for using carbon dioxide in industrial production (including for enhanced oil recovery),
• (b) monitoring and control equipment to be used solely for the functioning of equipment included in paragraph (a),
• (c) a building or other structure all or substantially all of which is used, or to be used, for the installation or operation of equipment described in paragraph (a) or (b), or
• (d) property that is used solely to
ÿ
• (i) convert another property that would not otherwise be described in any of paragraphs (a) to (e) if the conversion causes the other property to satisfy the description under any of paragraphs (a) to (c), or
• (ii) refurbish property described in any of paragraphs (a) to (c).

• Class 59 - 100% (after 31 Dec. 2021 & before 2041)

Use this option to enter a property that is an expenditure incurred by the taxpayer after 2021 and that is

• (a) for the purpose of determining the existence, location, extent or quality of a geological formation to permanently store captured carbon (other than for enhanced oil recovery) in Canada, including such an expense that is
• (i) a geological, geophysical or geochemical expense, or
• (ii) an expense for environmental studies or community consultations, including studies or consultations that are undertaken to obtain a right, licence or privilege for the purpose of determining the existence, location, extent or quality of a geological formation to permanently store captured carbon (other than for enhanced oil recovery); and
• (b) an expense other than an expense
• (i) incurred in drilling or completing an oil or gas well or in building a temporary access road to, or preparing a site in respect of, any such well, or
• (ii) described in Class 60.

• Class 60 - 30% (after 31 Dec. 2021 & before 2041)

Use this option to enter a property that is an expenditure incurred after 2021 by the taxpayer in

• (a) drilling or converting a well in Canada for the permanent storage of captured carbon (other than for enhanced oil recovery),
• (b) drilling or completing a well for the permanent storage of captured carbon (other than for enhanced oil recovery) in Canada, building a temporary access road to the well or preparing a site in respect of the well, or
• (c) drilling or converting a well in Canada for the purposes of monitoring pressure changes or other phenomena in captured carbon permanently stored in a geological formation (other than for enhanced oil recovery).

• Timber limits and cutting rights

Use this option to enter a timber limit or a right to cut timber from a limit. The allowance (CCA) is generally established on the basis of the quantity of timber cut in the year versus the quantity of timber which the taxpayer has a right to cut. The CRA discusses this deduction and provides guidelines with respect to the tax treatment of timber limits in Interpretation Bulletin IT-481 (Consolidated).

Rate: Depletion allowance applies. Enter the rate to be used in the Timber-Rate keyword in this group.

• Land - non depreciable property

Land (non depreciable property) can be entered here or in the Capital-Gains group. If the land is entered here, it will print on the CCA schedule but no capital cost allowance, recapture or terminal loss will be calculated on the land.

Description.ca

DIEP-Asset

When immediate expensing was introduced in Budget 2019 for zero-emission vehicles, the associated CCA Class (Class 54) included a special recapture rule in order to address the potential for excessive CCA deductions while also recognizing the impact of the capital cost limit on allowable deductions. Given the recently proposed immediate expensing measure, a parallel change for passenger vehicles included in Class 10.1 will be introduced where the vehicle has been designated for immediate expensing.

Specifically, a special rule would apply to adjust the proceeds of disposition to be deducted from the undepreciated capital cost of the property on the disposition of such a vehicle. Under this rule, the proceeds of disposition would be adjusted based on a factor equal to the capital cost limit ($34,000, for vehicles acquired on or after January 1, 2022) as a proportion of the actual cost of the vehicle. Where the vehicle is not designated for immediate expensing treatment, the ordinary CCA and recapture rules for Class 10.1 property would continue to apply.

Purch-Date

Purch-Date.cca

UCC-Open   

Use the keyword Adjust-UCC to subtract from the UCC at the beginning of 2023, any investment tax credit that was claimed or was refunded in 2022. Also subtract any 2022 investment tax credit that was carried back to a year before 2022.

Use [Alt-J] to enter different values for other jurisdictions.

Mine-Income   

Beginning in 2011, the accelerated CCA is phased out and the amount of the additional allowance will be reduced each year, regardless of whether the constraint is the income from the mine or the amount of the undepreciated capital cost. The percentage allowed, as accelerated CCA, in each calendar year will be:

• 90% in 2011,
• 80% in 2012,
• 60% in 2013,
• 30% in 2014.

Under current rules, accelerated CCA is available in the form of an additional allowance which supplements the regular 25-per-cent CCA rate. It allows a taxpayer to deduct, in computing income for a taxation year, up to 100-per-cent of the undepreciated capital cost of the properties included in the separate Class 41, not exceeding the taxpayer's income for the year from the mine (calculated after deducting the regular CCA). Use [Alt-J] to enter different values for other jurisdictions.

LNG-Income   

Non-residential buildings at a facility that liquefies natural gas are eligible for a CCA rate of 4% plus the lesser of 6% and income from eligible liquefaction activities attributable to that facility.

Use [Alt-J] to enter different values for other jurisdictions.

Class12-Que

Class18-Que

Class18-Ded

A taxpayer may claim an additional deduction equal to 85% of the CCA claimed for a taxation year.

The additional deduction is not subject to CCA recapture upon disposition of the property.

CCA-Type

The following options are applicable for the keyword CCA-Type.

• Business level (enter full amts - 100%)

Choose this option to indicate that the CCA pertains to the business. The amount entered under UCCOPEN is 100% attributable to the business. The amount will be claimed at the business level i.e. before the application of the partner's share. If it is a rental property, the CCA will be factored to represent the co-owner's percentage excluding the own-use portion, if any.

• Partner level (enter prorated amounts)

Choose this option to indicate that the CCA pertains to the partner or co-owner. The UCCOPEN entered is attributable to the partner's share. In other words, the UCCOPEN already represents the partner's share of the amount. The amount will be claimed at the partner or co-owner level and is not factored in any way by the program.

• Business use of home

Choose this option to indicate that the CCA pertains to a business use of home.

CCA-Factor

This keyword was mainly introduced for motor-vehicle expenses claimed for business purposes. Basically, motor vehicle expenses claimed for business purposes are reported before CCA. According to the government forms replacing the business statements, you were asked to indicate the opening UCC ( UCC-Open ) at the percentage allocated to the business. Given that many prefer to have access to the real number that represent the total UCC-Open, additions or dispositions, DT Max has introduced this new keyword in the CCA-Class group. You can enter the total and CCA-Factor, and DT Max will allocate allowable amounts. Or you can ignore this keyword, and enter only the business portion as UCC-Open, additions or dispositions.

If CCA-Factor is used, and there are additions or dispositions in the year, the "Details" section of the CCA schedule will not indicate a personal portion because DT Max does not know the purpose for the CCA-Factor used.

Additions.db   

The amounts and descriptions entered here will appear on the CCA schedule. Use [Alt-J] to enter different values for other jurisdictions.

Additions-AIIP.db   

The Accelerated Investment Incentive will provide an enhanced first-year allowance for capital property that is subject to the CCA rules (referred to as eligible property), excluding certain property discussed in the Restrictions section below. The Accelerated Investment Incentive will also not apply to property in Classes 53 (manufacturing and processing machinery and equipment), 43.1 and 43.2 (clean energy equipment), which will rather be eligible for the full expensing measure introduced in this Statement.

The Accelerated Investment Incentive will effectively suspend the half-year rule (and equivalent rules for Canadian vessels and Class 13 property) in respect of eligible property. The allowance will then generally be calculated by applying the prescribed CCA rate for a class to one-and-a-half times the net addition to the class for the year. As a result, property currently subject to the half-year rule will, in essence, qualify for an enhanced CCA equal to three times the normal first-year allowance and property not currently subject to the half-year rule will qualify for an enhanced CCA equal to one-and-a-half times the normal first year allowance.

For example, prior to the introduction of the Accelerated Investment Incentive, a property in Class 8, which has a prescribed rate of 20 per cent, would be eligible for CCA of 10 per cent of the cost of the property in the year it becomes available for use, due to the half-year rule. Under the Accelerated Investment Incentive, the taxpayer will be eligible for CCA of 30 per cent of the cost of the property that is one-and-a-half times the CCA calculated using the prescribed rate of 20 per cent or three times the 10-per-cent CCA that could otherwise be claimed in the first year.

Restrictions
The Income Tax Act and the Income Tax Regulations include a series of rules designed to protect the integrity of the CCA regime and the tax system more broadly. These include rules related to limited partners, specified leasing properties, specified energy properties and rental properties. In certain circumstances, these rules can restrict a CCA deduction, or a loss in respect of such a deduction, that would otherwise be available. These integrity rules will continue to apply.

Certain additional restrictions will be placed on property that is eligible for the Accelerated Investment Incentive. Property that has been used, or acquired for use, for any purpose before it is acquired by the taxpayer will be eligible for the Accelerated Investment Incentive only if both of the following conditions are met:

• neither the taxpayer nor a non-arm's-length person previously owned the property; and
• the property has not been transferred to the taxpayer on a tax-deferred rollover basis.

The amounts and descriptions entered here will appear on the CCA schedule. Use [Alt-J] to enter different values for other jurisdictions.

Add-Included-Taxes

Additions-AIIPQ.db

Following the initiatives announced by the federal government, to further encourage businesses to invest, the Québec government is announcing that, up until 2024, they will be able to immediately write off the full cost of investments in:

• computer hardware;
• manufacturing and processing equipment;
• clean energy generation equipment;
• intellectual property.

Under the current tax legislation, in the first taxation year in which a property is used, the capital cost allowance can be claimed for only half of the cost of the acquired property (half-year rule).

To enable businesses to write off 100% of the value of their investments in the first year, the half-year rule will no longer apply in respect of eligible investments.

Following the initiatives announced by the federal government, and to encourage businesses to increase their investments in Québec, the government is introducing an enhanced capital cost allowance.

• Businesses will be able to claim up to three times the amount of the capital cost allowance normally applicable in the first year for all types of investments not covered by the increase in the depreciation rate to 100%.

This new measure will apply to all businesses that make investments in any sector of the economy and in any region.

• It applies to property acquired after November 20, 2018 and before 2028.

Accelerated depreciation of property that is qualified intellectual property or general-purpose electronic data processing equipment
The proposed changes to the federal tax system regarding accelerated depreciation will be adjusted, for the purposes of Quebec's tax system, so that a taxpayer may deduct, for the taxation year in which the property becomes available for use, the full cost of acquisition of a property that is qualified intellectual property or general-purpose electronic data processing equipment.

Special rules applicable in the case of qualified intellectual property
Where an accelerated investment incentive property is qualified intellectual property that is property included in Class 14 of Schedule B to the Regulation respecting the Taxation Act, the product obtained by multiplying, by 0.5, the portion of the capital cost of the property for the taxpayer determined on the basis of the property's remaining life at the time the cost was incurred, for the taxation year in which the property becomes available for use, will be replaced, when the property becomes available for use before 2024, by an amount corresponding to the amount by which the capital cost of the property for the taxpayer exceeds that portion.

Where an accelerated investment incentive property is qualified intellectual property that is incorporeal capital property to which a capital cost allowance rate of 5% (Class 14.1) applies, the variable "0.5" used to determine the amount to be added to the undepreciated capital cost of property in that class, at the end of the taxation year in which the property becomes available for use (before any deduction in respect of the capital cost allowance for the year), will be replaced by the variable "19: where the property becomes available for use before 2024.

Special rules applicable in the case of general-purpose electronic data processing equipment
Where an accelerated investment incentive property is property composed of general-purpose electronic data processing equipment and systems software for that equipment, namely, property included in Class 50 of Schedule B to the Regulation respecting the Taxation Act, acquired after the day of publication of this information bulletin and used primarily in Québec in the course of carrying on a business, the variable "0.5" used to determine the amount to be added to the undepreciated capital cost of property in that class, at the end of the taxation year in which the property becomes available for use (before any deduction in respect of the capital cost allowance for the year), will be replaced by the variable "9/11" where the property becomes available for use before 2024.

The amounts and descriptions entered here will appear on the CCA schedule.

Additions.sl   

The amounts and descriptions entered will appear on the CCA schedule.

For classes 13 and 14, DT Max will calculate the CCA based on the number of years remaining in the lease term (class 13) or useful life of the asset (class 14) for the additions entered. Next year, the CCA calculated will be carried forward into the Annual-CCA keyword in this group.

For class 13 the minimum amortization period is 5 years and the maximum is 40 years. If the number of years entered for an addition in the Additions.sl keyword is not within this range, DT Max will use the minimum or maximum allowed. Use [Alt-J] to enter different values for other jurisdictions.

Additions-AIIP.sl   

The amounts and descriptions entered will appear on the CCA schedule.

For classes 13 and 14, DT Max will calculate the CCA based on the number of years remaining in the lease term (class 13) or useful life of the asset (class 14) for the additions entered. Next year, the CCA calculated will be carried forward into the Annual-CCA keyword in this group.

For class 13 the minimum amortization period is 5 years and the maximum is 40 years. If the number of years entered for an addition in the Additions-AIIP.sl keyword is not within this range, DT Max will use the minimum or maximum allowed. Use [Alt-J] to enter different values for other jurisdictions.

Additions-AIIPQ.sl

The amounts and descriptions entered will appear on the CCA schedule.

For classes 13 and 14, DT Max will calculate the CCA based on the number of years remaining in the lease term (class 13) or useful life of the asset (class 14) for the additions entered. Next year, the CCA calculated will be carried forward into the Annual-CCA keyword in this group.

For class 13 the minimum amortization period is 5 years and the maximum is 40 years. If the number of years entered for an addition in the Additions-AIIP.sl keyword is not within this range, DT Max will use the minimum or maximum allowed.

DIEP-Limit

DIEP-AIIP-Limit

DIEP-AIIPQ-Limit

Que-Elig-AddDeduct

The following options are applicable for the keyword Que-Elig-AddDeduct.

• Additional capital cost allowance of 30% for 2024

Select this option if the property gives entitlement to the additional deduction of 30% for the following taxation year. For the program to calculate and carry forward the additional deduction, the acquisition must be entered in a separate class as required by the Quebec government.

A particular property for the purposes of the additional capital cost allowance of 30% must be new at the time of its acquisition by the taxpayer and not property acquired from a person or partnership with which the taxpayer does not deal at arm's length. It must begin to be used within a reasonable time after being acquired and, except in the case of loss or involuntary destruction by fire, theft or water, or a major breakdown, be used primarily in Québec in the course of carrying on a business for a period of at least 730 consecutive days after the property's use began.

• Not eligible

QueAddDeduction

The base amount of the allowance will correspond, for a taxation year, to an amount equal to 35% of the amount deducted as depreciation by the taxpayer in calculating income for the year in respect of the capital cost allowance class to which the taxpayer's qualified property belongs.

The amount that the taxpayer may deduct in calculating income for a taxation year on account of the additional capital cost allowance will correspond to the product of the base amount of the allowance for the year and the fraction of the undepreciated capital cost (UCC) of property of the capital cost allowance class attributable to the qualified property.

For the taxation year in which the qualified property is first put to use, the fraction of UCC attributable to the qualified property will correspond to the proportion represented by the ratio between one-half of the acquisition cost of that property and the UCC used in calculating the capital cost allowance for the year.

For the taxation year following the taxation year in which the qualified property is first put to use, the fraction of UCC attributable to the qualified property will correspond to the proportion represented by the ratio between the depreciation balance attributable to the qualified property and the UCC used in calculating the capital cost allowance for the year.

In this respect, the depreciation balance attributable to the qualified property will mean the amount by which the cost of the qualified property exceeds the part of the capital cost allowance amount that the taxpayer deducted in calculating the previous year's income and that is proportionately attributable to the qualified property.

Special tax
A taxpayer that claims an additional capital cost allowance in respect of qualified property and does not use the property mainly in the course of carrying on a business during a period of 730 consecutive days following the day it is first put to use or does not use it mainly in Québec throughout the 730-day period will be subject to a special tax.

This special tax will correspond to the amount of the additional capital cost allowance obtained by the taxpayer in respect of the property.

Qualified property
The qualified property must be put to use within a reasonable time of its acquisition and be used by the taxpayer mainly in the course of carrying on a business during a period of 730 consecutive days following the day it is first put to use, except in the case of loss or involuntary destruction of the property-caused, among other things, by accident or theft-or in the case of a major breakdown of the property.

Such property must be used mainly in Québec throughout the 730-day period. In addition, the property must be new at the time of its acquisition and be acquired by the taxpayer after March 28, 2017 and before April 1, 2019.

The additional capital cost allowance of 60% applies to a qualified property, which is, briefly, manufacturing or processing equipment and general-purpose electronic data processing equipment, acquired before April 1, 2020 and that was new at the time of its acquisition. The allowance is available for a two-year period, that is, the taxation year in which the qualified property becomes available for use by the taxpayer and the following year. The amount that a taxpayer may deduct in computing income in respect of qualified property, on account of the additional capital cost allowance, is equal to 60% of the portion of the capital cost allowance amount that the taxpayer claimed for the year, for the class to which the property belongs, and that is attributable to the property.

Taxation year in which property becomes available for use
The amount that a taxpayer may deduct in computing income, on account of the additional capital cost allowance of 60% in respect of qualified property, for the taxation year in which the property becomes available for use, will be equal to the lesser of the amount corresponding to the letter E and that corresponding to the letter F.

The amount corresponding to E will be equal to 60% of the portion of the capital cost allowance amount that the taxpayer claimed for the year, for the class to which the qualified property belongs, and that is attributable to the property. More specifically, the letter E corresponds to the amount determined by the following formula:

A x B/C
In this formula:
- A is the product of multiplying, by 60%, the amount deducted by the taxpayer in computing income for the taxation year, on account of the capital cost allowance for the class to which the qualified property belongs;
- B is the amount added to the undepreciated capital cost of the class to which the qualified property belongs, for the taxation year, which is attributable to the property;
- C is the undepreciated capital cost, at the end of the taxation year, of the property in the class that includes the qualified property (before any deduction in respect of the capital cost allowance for the year).

The amount corresponding to F will be equal to:
- 16.5% of the cost of acquisition of the property, where the qualified property is included in Class 50 of Schedule B to the Regulation respecting the Taxation Act;
- 15% of the cost of acquisition of the property, where the qualified property is included in Class 53 of Schedule B to the Regulation respecting the Taxation Act.

In addition, where the taxation year of the taxpayer in which the property becomes available for use has fewer than 365 days, the amount corresponding to F will then be equal to the product obtained by multiplying the amount calculated otherwise by the proportion that the number of days in the taxation year is of 365.

Taxation year following that in which property becomes available for use
The amount that a taxpayer may deduct in computing income, on account of the additional capital cost allowance of 60%, for the taxation year following that in which the property becomes available for use, in respect of qualified property owned by the taxpayer at the end of the taxation year, will be equal to the lesser of the amount corresponding to the letter G and that corresponding to the letter H.

The amount corresponding to G will be equal to the total, on the one hand, of the amount corresponding to E in excess of that corresponding to F, calculated in respect of the qualified property for the taxation year in which the property becomes available for use, and, on the other hand, of the additional capital cost allowance of 60% in respect of the qualified property, for the taxation year, which is determined by the following formula:

A x D/C
In this formula:
- A is the product obtained by multiplying, by 60%, the amount deducted by the taxpayer in computing income, for the taxation year, on account of the capital cost allowance for the class of property to which the qualified property belongs;

- D is the amount of the acquisition cost of the qualified property that is in excess of the amount deducted by the taxpayer in computing income for the taxation year in which the property becomes available for use, on account of the capital cost allowance attributable to the property;

- C is the undepreciated capital cost, at the end of the taxation year, of property in the class that includes the qualified property (before any deduction in respect of the capital cost allowance for the year).

The amount corresponding to H will be equal to the total, on the one hand, of the amount corresponding to F in excess of that corresponding to E, calculated in respect of the qualified property for the taxation year in which the property becomes available for use, and, on the other hand, of the following applicable amount:
- 23.9% of the cost of acquisition of the property, multiplied, where the taxpayer's taxation year has fewer than 365 days, by the proportion that the number of days in the taxation year is of 365, where the qualified property is included in Class 50 of Schedule B to the Regulation respecting the Taxation Act;

- 22.5% of the cost of acquisition of the property, multiplied, where the taxpayer's taxation year has fewer than 365 days, by the proportion that the number of days in the taxation year is of 365, where the qualified property is included in Class 53 of Schedule B to the Regulation respecting the Taxation Act.

As a consequence of the introduction of the additional capital cost allowance of 30%, the additional capital cost allowance of 60% will be eliminated as of December 4, 2018.

Additional capital cost allowance of property used for manufacturing and processing activity or consisting of computer equipment (CCA class 53 and 50)
Amount in column 9 of the CCA class to which the property belongs (50 or 53)				1             .
Rate			x	2         60%
Line 1 multiplied by 60%			=	3             .	A
Portion of the amount in column 7 that is attributable to the property		4             .	B
UCC of the CCA class for the purpose of calculating depreciation (amount entered in column 7)	/	5             .	C
Line 4 divided by line 5	=	.	x	6             .	B/C
Line 3 multiplied by line 6			=	7             .	E
Cost of the property		8             .
Multiplication factor. - If it is a Class 50 property, enter 16.5% - If it is a Class 53 property, enter 15%	x	9             .
Line 8 multiplied by the percentage of line 9	=	.	=	10            .	F
Enter the lesser of the amount from lines 7 and 10. Additional deduction for the taxation year in which the property is acquired				11            .

Adjust-Curr   

Enter the amount of adjustments to be added or deducted to the capital cost in the year of acquisition.

GST and PST rebates received in the year of acquisition are examples of such adjustments. Use [Alt-J] to enter different values for other jurisdictions.

Adjust-Curr-AIIP   

Enter the amount of adjustments to be added or deducted to the capital cost in the year of acquisition.

GST and PST rebates received in the year of acquisition are examples of such adjustments. Use [Alt-J] to enter different values for other jurisdictions.

Adjust-Curr-AIIPQ

Enter the amount of adjustments to be added or deducted to the capital cost in the year of acquisition.

GST and PST rebates received in the year of acquisition are examples of such adjustments.

Adjust-UCC   

Enter the amount of adjustments to be added or deducted.

Adjustments would be necessary, for example, if there was an investment tax credit on a prior year addition, or if an investment tax credit was applied. Use [Alt-J] to enter different values for other jurisdictions.

ACB.cca   

This is the amount on which the taxpayer first claims CCA. The capital cost of a property is usually the total of:

• the purchase price (not including the cost of land, which is usually not depreciable;
• the part of your client's legal, accounting, engineering, installation, and other fees that relates to the buying or construction of the property (not including the part that applies to land);
• the cost of any additions or improvements he or she made to the property after you acquired it, if your client did not claim these costs as a current expense (such as modifications to accommodate persons with disabilities); and
• for a building, soft costs (such as interest, legal and accounting fees, and property taxes) related to the period that the client is constructing, renovating, or altering the building, if these expenses have not been deducted as current expenses.

Upon disposition of the depreciable property, remove the ACB from this class. Use [Alt-J] to enter different values for other jurisdictions.

ACB-Amount-CCA   

Disposition

Disp-Date.cca

Proceeds.cc   

Please be sure to enter the same description in the keyword ACB-Disp.cca so that the program can properly link disposed assets.

The proceeds of disposition usually mean the selling price of a property. The proceeds of disposition are the amounts that your client receives, or that the CRA considers your client to have received, when he disposes of his property. This could include compensation that your client receives for property that someone destroys, expropriates, steals, or damages. Special rules may apply if your client disposes of a building for less than both its undepreciated capital cost and capital cost. Use [Alt+J] to enter different values for other jurisdictions. Use [Alt-J] to enter different values for other jurisdictions.

Proceeds.cca   

The proceeds of disposition usually mean the selling price of a property. The proceeds of disposition are the amounts that your client receives, or that the CRA considers your client to have received, when he disposes of his property. This could include compensation that your client receives for property that someone destroys, expropriates, steals, or damages. Special rules may apply if your client disposes of a building for less than both its undepreciated capital cost and capital cost. Use [Alt+J] to enter different values for other jurisdictions. Use [Alt-J] to enter different values for other jurisdictions.

ACB-Disp.cca   

Please be sure to enter the same description in the keyword Proceeds.cc so that the program can properly link disposed assets.

DT Max will calculate the CCA claim, the depreciation recapture, and, if the class is liquidated, the terminal loss except for part XVII method.

If the class is liquidated, select the option "Yes" for the keyword Liquidate . Use [Alt+J] to enter different values for other jurisdictions. Use [Alt-J] to enter different values for other jurisdictions.

ACB-Disp.cc   

DT Max will calculate the CCA claim, the depreciation recapture, and, if the class is liquidated, the terminal loss except for part XVII method.

If the class is liquidated, select the option "Yes" for the keyword Liquidate . Use [Alt+J] to enter different values for other jurisdictions. Use [Alt-J] to enter different values for other jurisdictions.

NAL-Disp

Exp-Disp.cca   

The amount entered will be deducted from the proceeds of disposition and the net amount will be entered on the CCA schedule to determine the amount of the CCA class reduction. Use [Alt-J] to enter different values for other jurisdictions.

Part-ProcAIIP   

Part-ProcAIIPQ   

Part-ProcDIEP   

Part-ProcDIEPaiip   

Part-ProcDIEPaiipQ   

Bus-Reduct   

This amount will limit the amount applied automatically by DT Max. Use [Alt-J] to enter different values for other jurisdictions.

RecapturOV   

Depreciation recapture is calculated for all CCA classes (with the exception of class 10.1) and for the cumulative eligible capital account.

In the year of disposition, there is no depreciation recapture or terminal loss for a class 10.1 asset. Instead, the half-year rule applies and CCA may be claimed on the opening balance of the class at one-half the rate, as is allowed by the income tax rules. Use [Alt-J] to enter different values for other jurisdictions.

TermlossOV   

Terminal loss is calculated for all CCA classes (with the exception of class 10.1) and for the cumulative eligible capital account.

In the year of disposition, there is no depreciation recapture or terminal loss for a class 10.1 asset. Instead, the half-year rule applies and CCA may be claimed on the opening balance of the class at one-half the rate, as is allowed by the income tax rules. Use [Alt-J] to enter different values for other jurisdictions.

CalcCapGain.cca

The following options are applicable for the keyword CalcCapGain.cca.

• Calculate capital gain
• Do not calculate capital gain

Cap-GainOV.cca   

Liquidate

See ACB-Disp.cca for details.

CECA   

Specify the amount of the CECA claim for the period pre-88 and post-87 to allow for accuracy in DT Max's calculations.

Upon disposition, DT Max will reduce the CEC class balance by 3/4 of the net proceeds of disposition. No reserve is allowed on amounts owing. A bad debt may be deducted at 3/4 of the amount (as per subs. 20(4.2)), and a recovery of a bad debt is added back at 3/4 of the amount (as per subs. 20(1)(i.1)). You must enter the appropriate amount for the bad debt or recovery amount.

If the CEC class balance is negative upon disposition, the negative amount is deemed to be:

• business income to the extent of the CEC deductions claimed for that particular business, and if there's an excess amount,
• taxable capital gain, i.e. excess amount less 1/2 of CEC deductions claimed before 1988. This deemed taxable capital gain is eligible for the capital gains deduction. After February 22, 1994 it is considered a business gain.

DT Max will calculate the amount added to net income as well as the capital gain resulting from the disposition (prior to February 23, 1994).

Reminder: If the taxpayer has used his capital gain deduction against his deemed taxable capital gain and then subsequently part or all to the proceeds of disposition becomes a bad debt, then 3/4 of the loss is deemed to be a capital loss to the extent of the capital gain deduction used and 3/4 of the recovered amount is deemed to be a taxable capital gain (as per subs. 39(11)). You must enter this information accordingly if applicable.

Note: The replacement property rule will allow you to defer the inclusion of the negative amount in income if a replacement property is acquired before the end of the first taxation year immediately following the taxation year in which the eligible capital property (ECP) was disposed of. The user must override DT Max's calculation of the inclusion amount if this rule applies to the taxpayer, by using RecapturOV .

If you have a positive balance upon disposition, then the taxpayer may continue to deduct annually 7% of the remaining balance. DT Max will calculate and claim the CEC amount. However, if the taxpayer ceased to carry on a business in the year, the remaining positive balance in the CEC class results in a terminal loss. To indicate this, enter "Yes" under Liquidate. DT Max will determine and claim the terminal loss deduction.

The deduction must be made in the year the taxpayer ceases to carry on a business unless he has elected to extend the fiscal period of the business (s. 25). If this election has been made, enter "No" under Liquidate .

ADJUSTMENT TO CECA RATES _______________________________________________________ ________________________________________________________    1/2 = Inclusion   3/4 = Inclusion    10 % = Deduction   7 % = Deduction _______________________________________________________________________________ | for fiscal periods for fiscal periods commencing before 1988 commencing after Jan. 1, 1988 1987 TRANSITION RULES: Individuals who had a positive CEC balance at the end of the last fiscal period commencing before 1988 are required to increase that balance by 1/2 at the beginning of the first fiscal period commencing after 1987.

The following options are applicable for the keyword CECA.

• CECA after 1987
• CECA prior to 1988

Annual-CCA   

Annual-CCA.sl   

Timber-Rate

HalfYear-CCA

See subsections 1100(2) to (2.4) of the federal Income Tax Act for exceptions to the half-year rule.

If the addition is not subject to the half-year rule, select "NO" with this keyword. The 50% rule does not apply when the available-for-use rules deny a CCA claim until the second tax year after the year your client acquired the property.

CCA-Limit   

You do not have to claim the maximum amount of CCA in any given year. You can claim any amount you like, from zero to the maximum allowed for the year. For example, if your client does not have to pay income tax for the year, you may not want to claim CCA. Claiming CCA reduces the balance of the class by the amount of CCA claimed. As a result, the CCA available for future years will be reduced.

DT Max will claim the lesser of the limit entered and the maximum allowable claim for the class, calculated on the CCA schedule. Use [Alt-J] to enter different values for other jurisdictions.

CCA-OV   

RestrictCCA

By default, DT Max will automatically limit the CCA claim on rental property income when the CCA claim would otherwise create or increase a loss. Net rental income before CCA from all rental properties of a sole proprietor or co-owner is the maximum amount of CCA allowed for tax purposes.

If the client has interests in a partnership that has rental property income, the partnership may not create or increase the loss of the rental property income. Hence, the partnership's net rental income before CCA is the maximum amount of CCA allowed for the partnership. DT Max will then limit the CCA claim on a partnership per partnership basis.

If you indicate "No" in RestrictCCA, DT Max will not limit the CCA claim automatically. For example, if the client has a furnished suite, you can create or increase a rental loss with the furniture. Simply enter "No" under RestrictCCA .

Note: The keyword RestrictCCA simply turns off the automatic limitation applied by DT Max, it does not affect the entry made with the keyword CCA-Limit .

CarbonRebate.1

You can claim this rebate for the portion of the year that meets all of the following conditions:

• you operated a business inside of Yukon or, you earned income from a rental property in Yukon while you were a Yukon resident in 2023
• your business had assets that burned fossil fuels, other than diesel, in 2023
• you did not and will not receive a carbon tax rebate for 2023 for certain mining businesses

This refundable income tax credit will be based on the undepreciated capital cost (UCC) of assets used in your business in 2023, as shown in the capital cost allowance (CCA) schedule that you used to calculate your business income or your share of income from a partnership. There are 3 asset categories:

• category 1: buildings
• category 2: equipment that burns fossil fuels
• category 3: "green" assets, designed to consume non-fossil fuels

Eligible Yukon asset
An eligible Yukon asset is a property that meets all the following conditions:

• it is a depreciable property that you owned on December 31, 2023, and is included in an eligible class
• you used it throughout 2023 mainly in carrying on a business in Yukon
• it was situated in Yukon at all, or substantially all, times in 2023, unless it was cross-border transport equipment

Mining-CarbonReb

Cross-Border.2

• you used it in 2023 mainly to transport passengers or goods between a place in Yukon and a place outside of Yukon
• you elected to treat it as cross-border transport equipment

NetFuel-Yukon

NetFuel-Worldwide

CCA-PartXVII

The following options are applicable for the keyword CCA-PartXVII.

• Class 1 - 4%

Most buildings bought after 1987, including components such as wiring, plumbing, heating, and cooling systems. Buildings with a cost exceeding $50,000 should be entered in separate classes.

• Class 1 - 6% (after March 18, 2007)

Other non-residential buildings acquired by a taxpayer after March 18, 2007.

To be eligible for one of the additional allowances, a building will be required to be placed into a separate class. If the taxpayer forgoes the separate class, the current rate of 4% will apply.

Natural gas distribution pipelines acquired after March 18, 2007. Natural gas distribution pipelines are pipelines through which natural gas is carried from transmission pipelines to consumers. They include both distribution mains, which run to the edge of a customer's property, and service lines, which run from the edge of the customer's property to the house or building.

• Class 1 - 10% (after March 18, 2007)

Eligible non-residential buildings acquired after March 18, 2007, used for manufacturing or processing in Canada of goods for sale or lease will be increased to 10%.

To be eligible for one of the additional allowances, a building will be required to be placed into a separate class. If the taxpayer forgoes the separate class, the current rate of 4% will apply.

In order to be eligible for the 6% additional allowance, at least 90% of a building (measured by square footage) must be used for the designated purpose at the end of the tax year. Manufacturing and processing buildings that do not meet the 90% use test will be eligible for the additional 2% allowance if at least 90% of the building is used for non-residential purposes at the end of the tax year.

• Class 1 - 10% (LNG after February 19, 2015)

Accelerated CCA for liquefied natural gas (LNG) after February 19, 2015 and before 2025.

Non-residential buildings at a facility that liquefies natural gas are eligible for a CCA rate of 4% plus the lesser of 6% and income from eligible liquefaction activities attributable to that facility

• Class 2 - 6%

Electrical generating equipment, pipelines, and plant and equipment used in the production or distribution of electrical energy or gas or in the distribution of water or heat.

• Class 3 - 5%

Most buildings including components bought after 1978 and before 1988. However, you may have to include part of the cost of additions made after 1987 in class 1. For more details, see Interpretation Bulletin IT-79, Capital Cost Allowance - Buildings or Other Structures. Buildings acquired before 1988 with a cost exceeding $50,000 should be entered in separate classes.

• Class 6 - 10%

Frame, log, stucco on frame, galvanized iron, or corrugated metal buildings that do not have any footings below the ground. Class 6 also includes fences and greenhouses. Buildings with a cost exceeding $50,000 should be entered in separate classes.

• Class 7 - 15%

Canoes, rowboats, and most other vessels and their motors, furniture, and fittings. For more details, see Interpretation Bulletin IT-267, Capital Cost Allowance - Vessels.

• Class 8 - 20%

Property that you did not include in any other class. Some examples are fixtures, furniture, machinery, photocopiers, refrigeration equipment, telephones, and tools costing $200 or more. Class 8 also includes outdoor advertising signs you bought after 1987. Under proposed legislative changes, data network infrastructure equipment acquired after March 22, 2004 (usually included in class 8 at 20%) will be included in a new class 46 with a 30% CCA rate.

• Class 8 - 20% (Class 8.1 - 33 1/3%)

A drawing, print, engraving, sculpture, painting or other work of art of the same nature by a Canadian artist in order to display it at his place of business.

• Class 9 - 25%

Aircraft, including furniture or equipment attached to the aircraft, and spare parts.

• Class 10 - 30%

Automobiles, except those you use as a taxi or in a daily rental business, including vans, trucks, tractors, wagons, and trailers. General-purpose electronic data-processing equipment (commonly called computer hardware) and systems software. Under proposed legislative changes of March 23, 2004, computer equipment and systems software will be included in new class 45 and the CCA rate will increase from 30% to 45%. The current rule allowing a separate class election is not available for equipment that qualifies for the 45% rate. However, you may elect to have the current rule apply for equipment that is acquired before 2005.

• Class 16 - 40%

Taxis, vehicles you use in a daily car-rental business, coin-operated video games or pinball machines acquired after February 15, 1984, and freight trucks acquired after December 6, 1991, that are rated higher than 11,788 kilograms.

• Class 17 - 8%

Roads, parking lots, sidewalks, airplane runways, storage areas, or similar surface construction.

Description.ca

Purch-Date

Purch-Date.cca

Rate

The annual allowance rate is applied each year to the original cost of the asset rather than to the undepreciated balance of cost at year-end.

In the year of disposition of the asset, DT Max will claim the allowance for the number of months of ownership. There is no recapture or terminal loss under Part XVII.

Note: Part XVII is applicable to farmers and fishermen only for assets purchased up to the end of 1971.

Cost

Disposition

Disp-Date.cca

Date-Disp.cc

DT Max will claim the allowance for the number of months during which the taxpayer owned the asset.

There is no recapture or terminal loss under Part XVII.

Liquidate

See ACB-Disp.cca for details.

HalfYear-CCA

See subsections 1100(2) to (2.4) of the federal Income Tax Act for exceptions to the half-year rule.

If the addition is not subject to the half-year rule, select "NO" with this keyword. The 50% rule does not apply when the available-for-use rules deny a CCA claim until the second tax year after the year your client acquired the property.

CCA-Limit   

You do not have to claim the maximum amount of CCA in any given year. You can claim any amount you like, from zero to the maximum allowed for the year. For example, if your client does not have to pay income tax for the year, you may not want to claim CCA. Claiming CCA reduces the balance of the class by the amount of CCA claimed. As a result, the CCA available for future years will be reduced.

DT Max will claim the lesser of the limit entered and the maximum allowable claim for the class, calculated on the CCA schedule. Use [Alt-J] to enter different values for other jurisdictions.

CCA-OV   

Prior-CCA

CarbonRebate.1

You can claim this rebate for the portion of the year that meets all of the following conditions:

• you operated a business inside of Yukon or, you earned income from a rental property in Yukon while you were a Yukon resident in 2023
• your business had assets that burned fossil fuels, other than diesel, in 2023
• you did not and will not receive a carbon tax rebate for 2023 for certain mining businesses

This refundable income tax credit will be based on the undepreciated capital cost (UCC) of assets used in your business in 2023, as shown in the capital cost allowance (CCA) schedule that you used to calculate your business income or your share of income from a partnership. There are 3 asset categories:

• category 1: buildings
• category 2: equipment that burns fossil fuels
• category 3: "green" assets, designed to consume non-fossil fuels

Eligible Yukon asset
An eligible Yukon asset is a property that meets all the following conditions:

• it is a depreciable property that you owned on December 31, 2023, and is included in an eligible class
• you used it throughout 2023 mainly in carrying on a business in Yukon
• it was situated in Yukon at all, or substantially all, times in 2023, unless it was cross-border transport equipment

Mining-CarbonReb

Cross-Border.2

• you used it in 2023 mainly to transport passengers or goods between a place in Yukon and a place outside of Yukon
• you elected to treat it as cross-border transport equipment

NetFuel-Yukon

NetFuel-Worldwide

Home-Office

Home-Situation

• A portion of the home is used as a private reception residence; or
• A portion of the home is used to operate a tourist home, bed and breakfast establishment or participating establishment in a hospitality village, and the taxpayers holds a permit (issued under the Tourist Establishments Act) of the appropriate subclass or they are a participant in a hospitality village covered by such a permit.

In these cases, the 50% limit does not apply.

The following options are applicable for the keyword Home-Situation.

• Regular cases - the 50% limit applies

In all other cases, the 50% limit applies.

• Special situations - the 50% limit does not apply

If the taxpayer is in either of the following situations:

• A portion of the home is used as a private reception residence; or
• A portion of the home is used to operate a tourist home, bed and breakfast establishment or participating establishment in a hospitality village, and the taxpayers holds a permit (issued under the Tourist Establishments Act) of the appropriate subclass or they are a participant in a hospitality village covered by such a permit.

In these cases, the 50% limit does not apply.

Home-Own-Use

Home-HeatUse

Home-Off-Exp   

The program will report this amount on the schedule of business use of home expenses submitted with the business income statement.

The following options are applicable for the keyword Home-Off-Exp.

• Heat

You can deduct expenses for heating if you incurred the expenses to earn income.

• Electricity

You can deduct expenses electricity if you incurred the expenses to earn income.

• Insurance

You can deduct all ordinary commercial insurance premiums you incur on any buildings, machinery, and equipment you use in your business. For more information about claiming your motor vehicle insurance costs.

• Maintenance and repairs

You can deduct the cost of labour and materials for any minor repairs or maintenance done to property you use to earn income. However, you cannot deduct the value of your own labour. You cannot deduct costs you incur for repairs that are capital in nature. However, you may be able to claim capital cost allowance (CCA).

• Mortgage interest
• Property taxes

You can deduct property taxes you incurred for property used in your business. For example, you can deduct property taxes for the land and building where your business is situated.

• Utilities (telephone)

You can deduct expenses for telephone if you incurred the expenses to earn income.

• Other expenses (specify)

Home-OthExpQ

Federally, the amount should be entered as "other" home office expense (see Home-Off-Exp) with zero entered for Quebec (using [Alt+J]).

Home-%Share

Home-Off-CF   

An entry is only required for new client files and/or to change the amount carried forward by DT Max. Use [Alt-J] to enter different values for other jurisdictions.

Home-LimitOV   

The keyword Home-LimitOV should be used to indicate the eligible amount of home offices expense to be claimed when a partner (of a partnership) is reporting home office expenses on a separate T1163/T1273 form (AgriStability and AgriInvest programs information and statement of farming activities for individuals).

Generally, DT Max limits home office expenses to the net income of the business. Use [Alt-J] to enter different values for other jurisdictions.

Home-Adj-OV

PartShare-OV

The following options are applicable for the keyword PartShare-OV.

• Gross income from partnership

Partner's share of partnership gross income as shown in the T5013. DT Max will report this amount on line 829 of the relevant Revenue Canada business statement as gross income.

• Net income from partnership

Partner's share of partnership net income as shown in the T5013. DT Max will report this amount on line 9369 of the relevant Revenue Canada business statement as net income (loss) before adjustments. This amount already reflects the partners' share and will not be factored further for the partners' percentage share of ownership. Use Partner-Exp to enter other amounts deductible from your share of partnership income (loss). Use PARTNER-INC to specify other amounts to be added to your share of partnership income (loss). Capital cost allowance claimed by the partner should be specified with the keyword CCA-Type (partner level).

Partner-Inc   

DT Max will report it on the business income schedule below the net income (loss) before adjustments.

Enter the amount of the income and a description.

The following options are applicable for the keyword Partner-Inc.

• GST/HST rebate for partners received in the year
• QST rebate for partners received in the year
• Other partner income (Specify)

Partner-Exp   

DT Max will report these expenses on the business income schedule after the net income (loss) before adjustments.

Enter the amount of the expense and a description.

The following options are applicable for the keyword Partner-Exp.

• Accounting and legal fees
• Advertising and promotion
• Food, beverages, and entertainment
• Lodging
• Parking
• Supplies
• Other expenses (specify)
• Union, professional, or similar dues

Adjustments   

The adjustments are deducted from income. If you require an amount to be added to income, you must enter a negative amount.

For farming inventory adjustments, please refer to InventoryAdj for farming businesses using the cash-basis method of accounting.

The following options are applicable for the keyword Adjustments.

• Payments to self included in expenses
• Payments to partners included in expenses
• Cost of saleable goods consumed
• Personal portion of expenses
• Other

Use this option to enter other adjustments.

For Agristability/AgriInvest statement, under "cash basis", enter other deductions to be claimed on line 9940 of the T1163/T1273 forms.

  See the Taxnet Pro™ T1 Line-by-Line Guide (subscription required):
Line 12600 - Rental income - Net
Line 13500 - Business income - Net
Line 13700 - Professional income - Net
Line 13900 - Commission income - Net
Line 14100 - Farming income - Net
Line 14300 - Fishing income - Net
Line 22200 - Deduction for CPP or QPP contributions (Schedule 8)

  See the CRA's general income tax guide:
Line 12600 - Rental income
Lines 13499 to 14300 - Self-employment income
Line 22200 - Deduction for CPP or QPP contributions on self-employment and other earnings

GST-Rebate.b

  See the Taxnet Pro™ T1 Line-by-Line Guide (subscription required):
Line 45700 - Employee and partner GST/HST rebate (GST370)

  See the CRA's general income tax guide:
Line 46900 - Eligible educator school supply tax credit

GST-Allowance.b

  See the Taxnet Pro™ T1 Line-by-Line Guide (subscription required):
Line 12600 - Rental income - Net
Line 13500 - Business income - Net
Line 13700 - Professional income - Net
Line 13900 - Commission income - Net
Line 14100 - Farming income - Net
Line 14300 - Fishing income - Net
Line 22200 - Deduction for CPP or QPP contributions (Schedule 8)

  See the CRA's general income tax guide:
Line 12600 - Rental income
Lines 13499 to 14300 - Self-employment income
Line 22200 - Deduction for CPP or QPP contributions on self-employment and other earnings

GST-Exp-A-OV.b

The following options are applicable for the keyword GST-Exp-A-OV.b.

• Expenses other than motor vehicle & home office
• Motor vehicle expenses
• Home office (work space) expenses (excluding CCA)

  See the Taxnet Pro™ T1 Line-by-Line Guide (subscription required):
Line 12600 - Rental income - Net
Line 13500 - Business income - Net
Line 13700 - Professional income - Net
Line 13900 - Commission income - Net
Line 14100 - Farming income - Net
Line 14300 - Fishing income - Net
Line 22200 - Deduction for CPP or QPP contributions (Schedule 8)

  See the CRA's general income tax guide:
Line 12600 - Rental income
Lines 13499 to 14300 - Self-employment income
Line 22200 - Deduction for CPP or QPP contributions on self-employment and other earnings

Total.gst

The following options are applicable for the keyword Total.gst.

• Accounting and legal fees
• Advertising and promotion
• Food, beverages, and entertainment
• Lodging
• Parking
• Supplies
• Fuel
• Maintenance and repairs
• Leasing
• Electricity, heat, and water
• Other expenses (specify)
• Tradesperson's tools expenses (for employees)
• Apprentice mechanic tools expenses (for employees)
• Labour mobility deduction (for employees)
• Musical instrument expenses other than CCA
• Artists' employment expenses
• Union, professional, or similar dues
• CCA - musical instruments, aircraft
• CCA

Non-Elig

The following options are applicable for the keyword Non-Elig.

• Accounting and legal fees
• Advertising and promotion
• Food, beverages, and entertainment
• Lodging
• Parking
• Supplies
• Fuel
• Maintenance and repairs
• Leasing
• Electricity, heat, and water
• Other expenses (specify)
• Tradesperson's tools expenses (for employees)
• Apprentice mechanic tools expenses (for employees)
• Labour mobility deduction (for employees)
• Musical instrument expenses other than CCA
• Artists' employment expenses
• Union, professional, or similar dues
• CCA - musical instruments, aircraft
• CCA

Eligible

The following options are applicable for the keyword Eligible.

• Elig. exp.- prov. HST component paid separately
• Elig. CCA - prov. HST component paid separately

HST-Exp-B-OV.b

The following options are applicable for the keyword HST-Exp-B-OV.b.

• Expenses other than motor vehicle & home office
• Motor vehicle expenses
• Home office (work space) expenses (excluding CCA)

  See the Taxnet Pro™ T1 Line-by-Line Guide (subscription required):
Line 12600 - Rental income - Net
Line 13500 - Business income - Net
Line 13700 - Professional income - Net
Line 13900 - Commission income - Net
Line 14100 - Farming income - Net
Line 14300 - Fishing income - Net
Line 22200 - Deduction for CPP or QPP contributions (Schedule 8)

  See the CRA's general income tax guide:
Line 12600 - Rental income
Lines 13499 to 14300 - Self-employment income
Line 22200 - Deduction for CPP or QPP contributions on self-employment and other earnings

Total.gst

The following options are applicable for the keyword Total.gst.

• Accounting and legal fees
• Advertising and promotion
• Food, beverages, and entertainment
• Lodging
• Parking
• Supplies
• Fuel
• Maintenance and repairs
• Leasing
• Electricity, heat, and water
• Other expenses (specify)
• Tradesperson's tools expenses (for employees)
• Apprentice mechanic tools expenses (for employees)
• Labour mobility deduction (for employees)
• Musical instrument expenses other than CCA
• Artists' employment expenses
• Union, professional, or similar dues
• CCA - musical instruments, aircraft
• CCA

Non-Elig

The following options are applicable for the keyword Non-Elig.

• Accounting and legal fees
• Advertising and promotion
• Food, beverages, and entertainment
• Lodging
• Parking
• Supplies
• Fuel
• Maintenance and repairs
• Leasing
• Electricity, heat, and water
• Other expenses (specify)
• Tradesperson's tools expenses (for employees)
• Apprentice mechanic tools expenses (for employees)
• Labour mobility deduction (for employees)
• Musical instrument expenses other than CCA
• Artists' employment expenses
• Union, professional, or similar dues
• CCA - musical instruments, aircraft
• CCA

Eligible

The following options are applicable for the keyword Eligible.

• Elig. exp.- prov. HST component paid separately
• Elig. CCA - prov. HST component paid separately

HST-Exp-C-OV.b

The following options are applicable for the keyword HST-Exp-C-OV.b.

• Expenses other than motor vehicle & home office
• Motor vehicle expenses
• Home office (work space) expenses (excluding CCA)

  See the Taxnet Pro™ T1 Line-by-Line Guide (subscription required):
Line 12600 - Rental income - Net
Line 13500 - Business income - Net
Line 13700 - Professional income - Net
Line 13900 - Commission income - Net
Line 14100 - Farming income - Net
Line 14300 - Fishing income - Net
Line 22200 - Deduction for CPP or QPP contributions (Schedule 8)

  See the CRA's general income tax guide:
Line 12600 - Rental income
Lines 13499 to 14300 - Self-employment income
Line 22200 - Deduction for CPP or QPP contributions on self-employment and other earnings

Total.gst

The following options are applicable for the keyword Total.gst.

• Accounting and legal fees
• Advertising and promotion
• Food, beverages, and entertainment
• Lodging
• Parking
• Supplies
• Fuel
• Maintenance and repairs
• Leasing
• Electricity, heat, and water
• Other expenses (specify)
• Tradesperson's tools expenses (for employees)
• Apprentice mechanic tools expenses (for employees)
• Labour mobility deduction (for employees)
• Musical instrument expenses other than CCA
• Artists' employment expenses
• Union, professional, or similar dues
• CCA - musical instruments, aircraft
• CCA

Non-Elig

The following options are applicable for the keyword Non-Elig.

• Accounting and legal fees
• Advertising and promotion
• Food, beverages, and entertainment
• Lodging
• Parking
• Supplies
• Fuel
• Maintenance and repairs
• Leasing
• Electricity, heat, and water
• Other expenses (specify)
• Tradesperson's tools expenses (for employees)
• Apprentice mechanic tools expenses (for employees)
• Labour mobility deduction (for employees)
• Musical instrument expenses other than CCA
• Artists' employment expenses
• Union, professional, or similar dues
• CCA - musical instruments, aircraft
• CCA

Eligible

The following options are applicable for the keyword Eligible.

• Elig. exp.- prov. HST component paid separately
• Elig. CCA - prov. HST component paid separately

HST-Partic-OV.b

The following options are applicable for the keyword HST-Partic-OV.b.

• Col A - Eligible expense (other than CCA) - HST 1%
• Col A - Eligible CCA - HST 1%
• Col B - Eligible expense (other than CCA) - HST 2%
• Col B - Eligible CCA - HST 2%
• Col C - Eligible expense (other than CCA) - HST 8%
• Col C - Eligible CCA - HST 8%
• Col D - Eligible expense (other than CCA) - HST 9%
• Col D - Eligible CCA - HST 9%

QST-Rebate.b

QST-Exp-OV.b

The QST rate is now 7%.

The following options are applicable for the keyword QST-Exp-OV.b.

• Expenses other than motor vehicle & home office
• Motor vehicle expenses
• Home office (work space) expenses (excluding CCA)

  See the Taxnet Pro™ T1 Line-by-Line Guide (subscription required):
Line 12600 - Rental income - Net
Line 13500 - Business income - Net
Line 13700 - Professional income - Net
Line 13900 - Commission income - Net
Line 14100 - Farming income - Net
Line 14300 - Fishing income - Net
Line 22200 - Deduction for CPP or QPP contributions (Schedule 8)

  See the CRA's general income tax guide:
Line 12600 - Rental income
Lines 13499 to 14300 - Self-employment income
Line 22200 - Deduction for CPP or QPP contributions on self-employment and other earnings

Total.qst

The following options are applicable for the keyword Total.qst.

• Accounting fees
• Advertising and promotion
• Entertainment
• Food and beverages
• Lodging
• Parking
• Supplies
• Fuel
• Maintenance and repairs
• Leasing
• Electricity, heat, and water
• Other expenses (specify)
• Musical instrument expenses other than CCA
• Apprentice mechanic tools expenses (for employees)
• CCA - musical instruments, aircraft
• CCA

Non-Elig.qst

The following options are applicable for the keyword Non-Elig.qst.

• Accounting fees
• Advertising and promotion
• Entertainment
• Food and beverages
• Lodging
• Parking
• Supplies
• Fuel
• Maintenance and repairs
• Leasing
• Electricity, heat, and water
• Other expenses (specify)
• Musical instrument expenses other than CCA
• Apprentice mechanic tools expenses (for employees)
• CCA - musical instruments, aircraft
• CCA

Eligible.qst

The following options are applicable for the keyword Eligible.qst.

• Elig. exp.- prov. HST component paid separately
• Elig. CCA - prov. HST component paid separately

Net-Inc-Opt   

Use this keyword to indicate the desired level of net income for this farming business (optional inventory adjustment). Use [Alt-J] to enter different values for other jurisdictions.

  See the Taxnet Pro™ T1 Line-by-Line Guide (subscription required):
Line 12600 - Rental income - Net
Line 13500 - Business income - Net
Line 13700 - Professional income - Net
Line 13900 - Commission income - Net
Line 14100 - Farming income - Net
Line 14300 - Fishing income - Net
Line 22200 - Deduction for CPP or QPP contributions (Schedule 8)

  See the CRA's general income tax guide:
Line 12600 - Rental income
Lines 13499 to 14300 - Self-employment income
Line 22200 - Deduction for CPP or QPP contributions on self-employment and other earnings

Addit-Income   

This amount is determined by DT Max according to sections 34.1 and 34.2 of the Income Tax Act, and it may be overridden using this keyword.

The following options are applicable for the keyword Addit-Income.

• Additional business income

This is the additional business income per S34.1(1) or additional income election per S34.1(2) of the Act in respect of a business carried on by the individual in a taxation year in which the alternative fiscal-period method was elected under S249.1(4).

It is applied on a business-by-business basis.

DT Max will calculate the estimated additional income amount based on the stub period ( No. of days on which the individual carries on the business after the end of the fiscal period and up to and including December 31, 2023/No. of days on which an individual carries on the business that are in the fiscal periods of the business ending in 2023)

You may override the additional income amount with this option.

Note: Sections 34.1(1) and (2) of the Act is not applicable in the year the taxpayer dies, becomes bankrupt, or ceases to carry on a business.

• Additional business income - previous year

This is the additional business income per S34.1(1) or additional income election per S34.1(2) of the Act included into income in the previous year in respect of a business carried on by the individual in which the alternative method was elected under S249.1(4).

DT Max carryforward this amount from the previous year.

  See the Taxnet Pro™ T1 Line-by-Line Guide (subscription required):
Line 13500 - Business income - Net
Line 13700 - Professional income - Net
Line 13900 - Commission income - Net
Line 14100 - Farming income - Net
Line 14300 - Fishing income - Net

  See the CRA's general income tax guide:
Lines 13499 to 14300 - Self-employment income

QueEnclosedT1139

Spouse-Partner%

The following options are applicable for the keyword Spouse-Partner%.

• Spouse share - generate business statement with same data

This option allows you to generate a business statement with the same data in the spouse's file.

Only use this option if the data is identical for both spouses, the only difference being the percentage share (%).

This option cannot be used if there are expenses at the partner level or if the UCC amounts have already been prorated at the partner level (unless they are 50-50).

If you entered the keyword Rest-Farm-Losses to indicate that farming was not the taxpayer's primary source of income, you must do the same in the spouse's file.

• Spouse share - complete partner section only

This option allows you to complete the partner information only. You will have to enter a Business group in the spouse's file.

Agri-PIN-No

This information is requested on page 5 of the AgriStability/AgriInvest statement for the partnership information.

Sp-Home-Own-Use

Sp-Home-HeatUse

Sp-Home-%Share

Bus-Partner

First-Name

Street.m

City.m

Province.m

PostCode.m

SIN.m

As of 1996, this entry is for information purposes only and does not appear on the tax return.

Agri-PIN-No

This information is requested on page 5 of the AgriStability/AgriInvest statement for the partnership information.