  Capital gains and losses |
Use CapitalProp to keep a database of all non depreciable capital property owned by the corporation and their adjusted cost bases. Enter disposals of such property in this group and DT Max will calculate any capital gains or losses for schedule 6.
Depreciable capital property should be entered in the CCA-Class group.
The following options are applicable for the keyword CapitalProp.
Shares Choose "Yes" in PrivateCorp if the shares are of a private company. In the year of disposal, DT Max will tick the box indicating this on Schedule 6 (T2S(6)).
Real estate - non depreciable Enter real estate which is non depreciable such as land or on which no capital cost allowance is claimed here.
Bonds Choose "Yes" in PrivateCorp if the bonds are of a private company.
Other property Other property includes foreign exchange, mutual fund units and options. Choose "Yes" in PrivateCorp if the property is other debt (not bonds) receivable from a private company.
Personal use property Personal-use property losses are not deductible. The minimum proceeds and adjusted cost base for such property on its disposal is $1 000.
Listed personal property Listed personal property losses are only deductible against listed personal property gains. DT Max will carry forward any non deductible current year loss on Schedule 4 (T2S(4)-net).
Partnership interest capital gain (100% inclusion rate) For a partnership interest, a special rule may apply to part of the capital gain that results from the disposition of such an interest to a non-resident or a tax-exempt corporation, or to a partnership or trust composed of such members or beneficiaries. In this case, part of the capital gain may be taxable at 50% and another part at 100%.
The portion of the capital gain for the year from the disposition that can reasonably be attributed to increases in the value of capital property (other than depreciable property) held directly by the partnership (or held indirectly by the partnership through one or more other partnerships) is taxable at the 50% inclusion rate and the rest is taxable at 100%.
As a result, if all the partnership assets are inventory, depreciable property or resource property, then the capital gain would be taxable at 100% unless an exception applies. If the assets also include capital property (other than depreciable property), you must make an apportionment in order to apply the appropriate inclusion rate.
Use this option to enter the capital gain from a disposition of an interest in a partnership attributable to depreciable property or non-capital property where a 100% inclusion rate is used to calculate the taxable portion per paragraph 100(1)(b).
 See the Taxnet Pro™ T2 Line-by-Line Guide (subscription required):
Line 206 - Dispositions of capital property
Line 400 - Income from active business
Line 445 - Foreign investment income
 See the CRA's general income tax guide:
Line 400 - Income from active business carried on in Canada
Lines 440, 445, and 450
Select "YES" if the corporation donated to a charity either shares that are listed on a prescribed stock exchange or ecologically sensitive land.
A capital gain on the donation of a share or ecologically sensitive land realized prior to May 2, 2006, is included in income at only one-half the standard capital gains inclusion rate. A capital gain on a donation of a share or ecologically sensitive land realized after May 1, 2006, has an inclusion rate of zero per cent.
The following options are applicable for the keyword Donation.g.
See the Taxnet Pro™ T2 Line-by-Line Guide (subscription required):
Line 202 - Charitable donations
Select "YES" if the corporation has a deemed capital gain from the donation of property included in a flow-through share class of property to a qualified donee under section 40(12) of the Act.
The following options are applicable for the keyword FlowThroughShare.
See the Taxnet Pro™ T2 Line-by-Line Guide (subscription required):
Line 206 - Dispositions of capital property
Line 400 - Income from active business
Line 445 - Foreign investment income
See the CRA's general income tax guide:
Line 400 - Income from active business carried on in Canada
Lines 440, 445, and 450
If you have selected "YES" for the keyword FlowThroughShare, enter the exemption threshold at the time of disposition. Use [Alt-J] to enter different values for other jurisdictions.
Specify whether this is a taxable capital gain resulting from a gift of capital property made in the year. The non taxable portion of the capital gain will be used to calculate the limit on net income for donations.
The following options are applicable for the keyword Gift.cg.
See the Taxnet Pro™ T2 Line-by-Line Guide (subscription required):
Line 202 - Charitable donations
Use the keyword Elig-Amt to enter the eligible amount of the gift.
Enter the adjusted cost base and description of the property within this group in ACB. When the property is disposed, the ACB entered here will be used to calculate the capital gain or loss. Use [Alt-J] to enter different values for other jurisdictions.
The acquisition date of this property is requested information on schedule 6 in the year the property is disposed of.
The number of shares held is requested information on schedule 6 for the year the shares are disposed of.
The name and class of these shares is information requested on schedule 6 in the year the shares are disposed of.
A description of this property is requested information on schedule 6 in the year the property is disposed of. If a capital gains reserve is being claimed on the disposal, this description will be printed on schedule 13 in the capital gains reserves section.
The face value of these bonds is information requested on schedule 6 in the year the bonds are disposed of.
The maturity date of these bonds is information requested on schedule 6 in the year the bonds are disposed of.
The issuer's name is information requested on schedule 6 in the year the bonds/shares are disposed of.
Use the keyword Muni-Address to enter the municipal address of the property.
Use the keyword More-Info to enter additional address information. This will be line two of the address.
Use the keyword City.e to enter the city name. DT Max will not check the spelling of the city name.
Use the keyword Province.e to select the province.
The following options are applicable for the keyword Province.e.
Use the keyword State.e to select the state.
Use the keyword Country.e to select the country.
Use the keyword PostCode.e to enter the postal code. DT Max will make sure that it is in the correct format and will always enter the alphabetic portions in upper case.
Use the keyword ZIPCode.e to enter the zip code.
Use the keyword For-Post.e to enter the foreign postal code.
Enter the gain (loss) on disposal of the property recorded in the corporation's financial statements in the Net-Inc-Add or NET-INC-DED keyword of the NetIncome group. DT Max will adjust net income on schedule 1 for the book gain (loss).
If all property in this group is sold, choose "YES"; DT Max will use the amount entered in the ACB-Disp keyword in this group as the adjusted cost base of the property sold.
If the disposition is not of all property in this group, choose "NO" you need to then enter the ACB of the property sold in ACB-Disp-Cap in this group. DT Max will carry forward this group into next year's data for this client.
The following options are applicable for the keyword Proceeds-Cap.
Use [Alt-J] to enter different values for other jurisdictions.
If an ACB was not entered for this group by using the ACB keyword, use ACB-Disp-Cap to indicate the adjusted cost base of asset(s) disposed of.
If assets remain in the class and an ACB was entered, ACB-Disp-Cap must be entered to indicate the adjusted cost base of the asset(s) disposed of. Next year, DT Max will carry forward the amount entered in the ACB keyword less the amount entered in ACB-Disp-Cap here; you can still adjust this amount in the ACB keyword for new property acquired or other ACB adjustments. Use [Alt-J] to enter different values for other jurisdictions.
Use Expenses-CG to enter expenses associated with the disposition of assets entered in this class. The amount entered will be deducted from the proceeds of disposition for this disposal on schedule 6 to determine the amount of the capital gain or loss. Use [Alt-J] to enter different values for other jurisdictions.
Section 112(3) is a "stop-loss" rule reducing the loss of the corporation in cases from a disposition of a share that is capital property, where the corporation received tax-free dividends on the share.
Use the keyword Stop-Loss-Adj to enter the amount of the adjustment.
If you choose "YES" in PrivateCorp, DT Max will tick column 2 of schedule 6 in the section related to this property. This indicates that the disposed shares were issued or debts were owing by a private corporation.
The following options are applicable for the keyword PrivateCorp.
See the Taxnet Pro™ T2 Line-by-Line Guide (subscription required):
Line 206 - Dispositions of capital property
Line 400 - Income from active business
Line 445 - Foreign investment income
See the CRA's general income tax guide:
Line 400 - Income from active business carried on in Canada
Lines 440, 445, and 450
Enter the date of the disposition in this group for your own information purposes only. This information is not used by DT Max.
See the Taxnet Pro™ T2 Line-by-Line Guide (subscription required):
Line 206 - Dispositions of capital property
Line 400 - Income from active business
Line 445 - Foreign investment income
See the CRA's general income tax guide:
Line 400 - Income from active business carried on in Canada
Lines 440, 445, and 450
Fed ITA sect. 111(4)(e) allows a corporation in the year of a change of control to designate dispositions of capital property. Thus, deemed capital losses arising on the change of control can be offset against capital gains on the designated dispositions. When "YES" is chosen here, DT Max will tick the "YES" box related to this question on schedule 6 and Quebec CO-17S.232 forms. A separate schedule indicating which properties are subject to such a designation needs to be attached to the forms filed.
The following options are applicable for the keyword DeemedDisp.c.
Use this keyword to indicate whether or not there has been a disposition under federal ITA section 85 whereby assets were transferred to or from a non-arm's length corporation with a permanent establishment in another Canadian jurisdiction. This information will appear on schedule 18 for Alberta.
The following options are applicable for the keyword InterProv.
If you choose "YES" in ABIL-Disp, DT Max will calculate an allowable business loss on this disposition if a loss was incurred. The loss will be deducted from net income on schedule 1. Any excess amount (exceeding net income before the loss) will be carried forward ten years as a non capital loss on schedule 4. After ten years, any unused allowable business investment loss will be carried forward as a net capital loss on schedule 4.
You can also use ABILOV in the NetIncome group to override the loss deducted from net income on schedule 1.
The following options are applicable for the keyword ABIL-Disp.
Use Country.cap if the property is located outside Canada. This information is required for schedule 7 in order to correctly classify any taxable capital gains net of allowable capital losses as either Canadian or foreign.
In the year of the property's disposal if foreign taxes were paid, enter the tax in TaxPaid. DT Max will then calculate the allowable foreign non business tax credit on schedule 21.
Use TaxTreaty to enter amounts to be deducted from net income for tax purposes due to a tax treaty with Canada. DT Max will deduct this amount from the NetIncome amount entered in this group for the foreign tax credit calculation on schedule 21. The total treaty-exempt income will be deducted from net income for tax purposes on the tax returns filed.
Use ForTaxDed.ca to override the automatic calculation of the foreign non business tax deduction from capital property dispositions for the federal, Quebec and Alberta jursidictions.
The following options are applicable for the keyword ForTaxDed.ca.
GainOV.cap will override the calculated gain or loss on the property disposed of.
Enter the gain (loss) on disposal of the property recorded in the corporation's financial statements in the Net-Inc-Add or Net-Inc-Ded keyword of the NetIncome group. DT Max will adjust net income on schedule 1 for the book gain (loss). Use [Alt-J] to enter different values for other jurisdictions.
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Donation.g 
Muni-Address 
More-Info