BusinessUse the keyword Business to select a category of activity where financial data such as business income and expenses will be entered, including data pertaining to rental properties.The following options are applicable for the keyword Business.
Use the keyword Business-Id to enter the full name or provide a description of the business.
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| 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 / ov
- Mandatory inventory adjustment (MIA) - current year
- Optional inventory adjustment (OIA) - previous year / ov
- Optional inventory adjustment (OIA) - current year / ov
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) 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) 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) 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 keyword Cost-Sales allows you to enter the cost of goods sold into the Business group. The following options are applicable for the keyword Cost-Sales.
- Purchases - COGS
- Subcontracts - COGS
- Direct wage costs - COGS
- Other costs - COGS
Reserve
Use the keyword Reserve to enter the opening and ending reserves applicable to this business. The following options are applicable for the keyword Reserve.
- Reserve for 1971 A/R - beginning of year
- Reserve for 1971 A/R - end of year
- Reserve - goods and services
- Reserve - goods & services (previous year)
- Reserve - debt forgiveness
- Reserve - debt forgiveness (previous year)
Opening reserve in respect of 1971 receivables
Ending reserve in respect of 1971 receivables.
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 claimed in the previous year with respect to goods and services per ITA S20(1)(m). DT Max will include this amount as business income this year.
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.
Enter the previous year's reserve for debt forgiveness. DT Max will add this amount as other income on forms T2125 and TP-80.
Expenses.bu
Use Expenses.bu to enter the type and amount of business expenses incurred.
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.bu.
- Advertising
- Meals expenses
- Meals expenses (regular travel - Quebec)
- Meals expenses (not subject to the set limits - Quebec)
- 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 incurred 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)
- Entertainment expenses
- Bad debts
- Insurance
- Interest - short-term & bank charges
- Interest - long-term
- Interest
- Business tax, fees, licences, memberships, & subscriptions
- Office expenses
- Supplies
- Legal fees and related expenses
- Professional dues
- Accounting and other professional fees
- Management and administration fees
- Rent
- Maintenance and repairs
- Maintenance and repairs (related to the units rented only)
- Salaries, wages and benefits (including employer's contr.)
- Property taxes
- Travel
- Utilities (telecommunications)
- Utilities (light & power)
- Fuel costs (except for motor vehicles)
- Delivery, freight, and express
- Motor vehicle expenses (not including CCA)
- Commissions paid
- Convention and training expenses
- Gardening
- Snow removal
- Annual registration fee paid (NEQ)
- Other expenses (specify)
Expenses for advertising, including ads in Canadian newspapers and on Canadian television and radio stations. It also include on this line any amount paid as a finder's fee. Certain restrictions apply to the amount of the expense 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.
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.
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.
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:
The amount deductible for food and beverages consumed by a long-haul truck driver during an eligible travel period has been 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.
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.
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.
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.
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.
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.
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).
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.
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.
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.
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).
You can deduct gross salaries and other benefits you pay to employees.
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.
You can deduct travel expenses you incur to earn business and professional income. Travel expenses include public transportation fares, hotel accommodations, and meals.
You can deduct expenses for telephone if you incurred the expenses to earn income.
You can deduct expenses for utilities, such as gas, oil, electricity, and water, if you incurred the expenses to earn income.
You can deduct the cost of fuel (including gasoline, diesel, and propane), motor oil, and lubricants used in your business.
You can deduct the cost of delivery, freight, and express incurred in the year that relates to your business.
FishExpenses
The keyword FishExpenses is only relevant for fishing businesses.
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 cost (except for motor vehicles)
- Fishing gear
- Food stocked on the boat to feed the crew (100%)
- Fishing licences
- Nets and traps
- Repairs - fishing boat
- Repairs - engine
- Repairs - electrical equipment
- Repairs - Insurance recovery
FarmExpenses
The keyword FarmExpenses is only relevant for farming businesses.
A list of farming-related expenses is provided when the keyword is used.
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, 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 premium
- 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
Use the keyword Farm-Expense to choose the relevant option and specify the amount of farming expenses.
DT Max will report the expenses as eligible on either the T1163 form or the T1273.
The numbers in front of the expense items represent the code for the AgriStability and AgriInvest programs.
Use [Alt-J] to enter different values for other jurisdictions.
Oth-Farm-Exp
Use the keyword Oth-Farm-Exp to choose the relevant option and specify the amount of farming expenses.
DT Max will report the expenses as non eligible on form T1163 or T1273.
The numbers in front of the income items represent the AgriStability and AgriInvest code numbers.
The following options are applicable for the keyword Oth-Farm-Exp.
- Machinery (repairs, licences, insurance)
- Machinery lease/rental
- Advertising and promotion costs
- Building and fence repairs
- Land clearing and draining
- Contract work, seed cleaning
- Other insurance premiums
- Interest (real estate mortgage, other)
- Membership/subscription fees
- Office expenses
- Legal and accounting fees
- Property taxes
- Rent (land, buildings, pastures)
- Non-arm's length salaries
- Motor vehicle expenses
- Small tools
- Soil testing
- Licences/permits
- Telephone
- Quota rental (tobacco, dairy)
- Gravel
- Purchases of commodities resold
- Motor vehicle interest & leasing costs
- Other (specify)
Exp-%Claim
If any business expense is to be deducted at less than 100%, use the keyword Exp-%Claim, choose the expense you wish deducted at a lesser rate, and indicate the applicable percentage for the deduction of this expense. The following options are applicable for the keyword Exp-%Claim.
- Advertising
- Meals expenses
- Meals expenses (regular travel - Quebec)
- Meals expenses (not subject to the set limits - Quebec)
- 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 incurred 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)
- Entertainment expenses
- Bad debts
- Insurance
- Interest - short-term & bank charges
- Interest - long-term
- Interest
- Business tax, fees, licences, memberships, & subscriptions
- Office expenses
- Supplies
- Legal fees and related expenses
- Professional dues
- Accounting and other professional fees
- Management and administration fees
- Rent
- Maintenance and repairs
- Salaries, wages and benefits (including employer's contr.)
- Property taxes
- Travel
- Utilities (telecommunications)
- Utilities (light & power)
- Fuel costs (except for motor vehicles)
- Delivery, freight, and express
- Motor vehicle expenses (not including CCA)
- Commissions paid
- Convention and training expenses
- Gardening
- Snow removal
Expenses for advertising, including ads in Canadian newspapers and on Canadian television and radio stations. It also include on this line any amount paid as a finder's fee. Certain restrictions apply to the amount of the expense 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.
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.
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.
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:
The amount deductible for food and beverages consumed by a long-haul truck driver during an eligible travel period has been 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.
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.
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.
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.
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.
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.
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).
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.
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.
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.
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).
You can deduct gross salaries and other benefits you pay to employees.
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.
You can deduct travel expenses you incur to earn business and professional income. Travel expenses include public transportation fares, hotel accommodations, and meals.
You can deduct expenses for telephone if you incurred the expenses to earn income.
You can deduct expenses for utilities, such as gas, oil, electricity, and water, if you incurred the expenses to earn income.
You can deduct the cost of fuel (including gasoline, diesel, and propane), motor oil, and lubricants used in your business.
You can deduct the cost of delivery, freight, and express incurred in the year that relates to your business.
Labour-Costs
Use the keyword Labour-Costs to enter the labour costs incurred for all businesses.
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).
LabourType
Choose the applicable type of labour cost (see Labour-Costs). 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
Use the keyword Worker to enter the name of the labour worker who performed the work.
This is required for completing the prescribed form TP-1086.R.23.12 for Quebec tax purposes (see Labour-Costs).
Address.work
Use the keyword Address.work to enter the address of the labour worker who performed the work.
This is required for completing the prescribed form TP-1086.R.23.12 for Quebec tax purposes (see Labour-Costs).
PostCode.wk
Use the keyword PostCode.wk to enter the postal code for the address of the labour worker who performed the work.
This is required for completing the prescribed form TP-1086.R.23.12 for Quebec tax purposes (see Labour-Costs).
SIN-Worker
Use the keyword SIN-Worker to enter the social insurance number of the labour worker who performed the work.
This is required for completing the prescribed form TP-1086.R.23.12 for Quebec tax purposes (see Labour-Costs).
QST-Worker
Use the keyword QST-Worker to enter the QST number of the labour worker who performed the work.
This is required for completing the prescribed form TP-1086.R.23.12 for Quebec tax purposes (see Labour-Costs).
Exp%Claim
Exp%Claim portion of labour costs being claimed
Forest-Average
Use the keyword Forest-Average to indicate the deduction for income-averaging for forest producers.
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-Average.
- Income-averaging for forest producers (bef. March 10, 2020)
- Income-averaging for forest producers (after March 9, 2020)
See the CRA's general income tax guide:
Line 10 - Deemed dispositions income or losses
Woodlot-Location
Woodlot-Location Woodlot location if different than city included in your Business identification
Hist-ForestAver
Hist-ForestAver Year and amount deducted for income-averaging for forest producers The following options are applicable for the keyword Hist-ForestAver.
- 1st prior year
- 2nd prior year
- 3rd prior year
- 4th prior year
- 5th prior year
- 6th prior year
- 7th prior year
- 8th prior year
- 9th prior year
ForestAver-Balance
Year and balance amount deducted for income-averaging for forest producers The following options are applicable for the keyword ForestAver-Balance.
- 1st prior year
- 2nd prior year
- 3rd prior year
- 4th prior year
- 5th prior year
- 6th prior year
- 7th prior year
- 8th prior year
- 9th prior year
PriorYrInclusion
PriorYrInclusion Portion of prior year deduction included this year (TP-726.30, L.16) The following options are applicable for the keyword PriorYrInclusion.
- 1st prior year
- 2nd prior year
- 3rd prior year
- 4th prior year
- 5th prior year
- 6th prior year
- 7th prior year
- 8th prior year
- 9th prior year
Forest-Aver-Inc
Use the keyword Forest-Aver-Inc to indicate the amount to be used for the calculation of the deduction for income-averaging for forest producers.
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 Quebec, 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(certified commercial activities)
Portion-Deducted
Use the keyword Portion-Deducted to choose the portion of line 21 of the TP-726.30 that should be deducted this year on line 22. If this keyword remains unused, DT Max will systematically use the amount calculated on line 21.
Interest-Loan
Use the keyword Interest-Loan to enter the amount of interest paid during the year on the loan taken out on the insurance policy.
InterestType
Choose the applicable type of interest expense. The following options are applicable for the keyword InterestType.
- Do not add as an expense to interest
- Add as an expense to interest
Insured
Use the keyword Insured to enter information about the insured. The following options are applicable for the keyword Insured.
- Trustee
- Other
SIN-Insured
Use the keyword SIN-Insured to enter the social insurance number of the insured.
BN-Insured
Use the keyword BN-Insured to enter the business number of the insured.
LastName.ins
Use the keyword LastName.ins to enter the last name of the insured.
FirstName.ins
Use the keyword FirstName.ins to enter the first name of the insured.
StreetNumber.ins
Use the keyword StreetNumber.ins to enter the street number of the insured's address.
StreetName.ins
Use the keyword StreetName.ins to enter the name of the street.
Apartment.ins
Use the keyword Apartment.ins to enter the apartment number of the insured.
City.ins
Use the keyword City.ins to enter the name of the city.
Province.ins
Use the keyword Province.ins to enter the name of the province. The following options are applicable for the keyword Province.ins.
- Newfoundland and Labrador
- Prince Edward Island
- Nova Scotia
- New Brunswick
- Quebec
- Ontario
- Manitoba
- Saskatchewan
- Alberta
- British Columbia
- Yukon
- Northwest Territories
- Nunavut
- Other (specify)
Postal-Code.ins
Use this keyword to enter the postal code. DT Max will ensure that it is printed in the correct format (A1B 2C3) on the tax return.
ForeignPostCode
Use the keyword ForeignPostCode to enter the foreign postal code for an address outside of Canada.
Telephone.ins
Use the keyword Telephone.ins to enter the phone number of the insured.
Please note that DT Max will not verify the format of the telephone number; it will accept whatever you enter.
InsuranceCo-Name
Use the keyword InsuranceCo-Name to enter the name of the insurance company.
Policy-No
Use the keyword Policy-No to enter the insurance policy number.
Company-StreetNo
Use the keyword Company-StreetNo to enter the street number of the insurance company address.
Company-Street
Use the keyword Company-Street to enter the street name for the insurance company address.
Company-Suite
Use the keyword Company-Suite to enter the company's suite number.
Company-City
Use the keyword Company-City to enter the name of the city for the insurance company.
Company-Province
Use the keyword Company-Province to enter the name of the province for the insurance company. The following options are applicable for the keyword Company-Province.
- Newfoundland and Labrador
- Prince Edward Island
- Nova Scotia
- New Brunswick
- Quebec
- Ontario
- Manitoba
- Saskatchewan
- Alberta
- British Columbia
- Yukon
- Northwest Territories
- Nunavut
- Other (specify)
Co-Postal-Code
Use the keyword Co-Postal-Code to enter the postal code for the insurance company.
For-Co-PostCode
Use the keyword For-Co-PostCode to enter the foreign postal code of the insurance company, if applicable.
Company-PhoneNo
Use the keyword Company-PhoneNo to enter the telephone number of the insurance company.
Expense%Claim
If the interest paid on a loan is not being claimed at 100%, use the keyword Expense%Claim to indicate the portion of the interest being claimed.
Vehicle-Exp
Use the keyword Vehicle-Exp to indicate whether the expense is claimed at the business level or at the partner level. The following options are applicable for the keyword Vehicle-Exp.
- Purchased vehicle
- Leased passenger vehicle
- Leased vehicle other than passenger vehicle
CCA-Class.car
Choose the applicable CCA class related to the motor vehicle expenses claimed. Class 10.1 requires a separate class for each addition.
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%
- Class 10.1 - 30%
- Class 54 - 30% (after March 19 2019 & before 2028)
- Class 56 - 30% (after 1 Mar. 2020 & before 2028)
- Class 57 - 8% (after 31 Dec. 2021 & before 2041)
- (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)
- (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
- (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)
- (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)
- (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).
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.
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 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/ACCA 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.
Use this option to enter a property that is part of a CCUS project of a taxpayer and that is
Use this option to enter a property that is part of a CCUS project of a taxpayer, and that is
ÿ
Use this option to enter a property that is an expenditure incurred by the taxpayer after 2021 and that is
Use this option to enter a property that is an expenditure incurred after 2021 by the taxpayer in
Model.ca
Use the keyword Model.ca to enter the model of the vehicle.
Make.ca
Use the keyword Make.ca to enter the make of the vehicle.
RegistrationNo.
RegistrationNo. registration number
Car-Level
Use the keyword Car-Level to indicate whether the expense is claimed at the business level or at the partner level. The following options are applicable for the keyword Car-Level.
- Business expense
- Partner expense
Purch-Date
Use the keyword Purch-Date to enter the date of purchase of the automobile.
UCC-Open
Use the keyword UCC-Open to enter the opening undepreciated capital cost or cumulative eligible capital.
Use [Alt-J] to enter different values for other jurisdictions.
Kilometres
Use the keyword Kilometres to enter the number of kilometres travelled for business or employment during the year.
This value is used by DT Max in fixing a percentage of use for business or employment.
The following options are applicable for the keyword Kilometres.
- Kilometres travelled for business or work
- Total kilometres travelled
Kilometres travelled in the year for business or employment purposes.
Total kilometres travelled this year.
Expenses.car
Use the keyword Expenses.car to enter the amount of car expenses incurred. 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 expenses - car
- Interest expenses - other
- Electricity for zero-emission vehicles
- Rental fees
- Parking fees
- Other expenses (please specify)
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.
Days-Interest
Use the keyword Days-Interest to enter the number of days that interest on a car loan was paid this year.
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
Use Leasing-Cost to enter the total leasing charges for this vehicle, namely the costs incurred in the current tax year and the costs already deducted in the past. 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
Use the keyword Leasing-Date to enter the total number of days the vehicle was leased, from the day the contract took effect to the end of the year. The following options are applicable for the keyword Leasing-Date.
- Beginning of leasing contract
- End of leasing contract
List-Price
Use the keyword List-Price to enter the manufacturer's suggested retail price for the passenger vehicle leased. Do not include taxes. Use [Alt-J] to enter different values for other jurisdictions.
Deemed-Interest
This keyword is only used to fill lines 6 and 16 of the TP-421.6 form, which is reserved for Quebec residents.
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:
January 1st, 2000, to March 31, 2000 5% April 1st, 2000, to June 30, 2001 6% July 1st, 2001, to December 31, 2001 5% January 1st, 2002, to March 31, 2002 3% April 1st, 2002, to June 30, 2002 2% July 1st, 2002, to December 31, 2002 3%
Two options are available for this entry:
THIS YEAR
To determine the amount to enter on line 16 of form TP-421.6, 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 6 of form TP-421.6, 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
This is relevant to Quebec residents only.
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
Only use this keyword if you wish to bypass the automatic calculation performed by DT Max. Amounts entered in other keywords associated with leasing expenses will then be ignored. Use [Alt-J] to enter different values for other jurisdictions.
Additions.db
Use Additions.db to enter the cost of current year capital additions (acquisitions) to this CCA class (determined on a declining balance basis).
The amounts and descriptions entered here will appear on the CCA schedule.
If the addition is not subject to the half-year rule, make the entry in a CCA class specified as not being subject to the half-year rule. Use [Alt-J] to enter different values for other jurisdictions.
Additions-AIIP.db
Use Additions-AIIP.db to enter the cost of current year capital additions acquired after November 20, 2018 which are eligible for the accelerated capital cost allowance (CCA) for this class, determined on a declining balance basis.
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.
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
Use the keyword Add-Included-Taxes to indicate whether the amount entered as additions includes the sales tax.
This information is required for CCA classes in which the amount of CCA deductible is limited. DT Max will calculate the allowable portion based on the maximum amount plus the applicable sales tax.
Additions-AIIPQ.db
Use Additions-AIIPQ.db to enter the cost of current year capital additions acquired after December 3, 2018 which are eligible for the accelerated capital cost allowance (CCA)for this class, determined on a declining balance basis.
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 investmentsnot 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.
Adjust-Curr
The adjustment entered here will be deducted from (if negative) or added to (if positive) the capital cost of this class on the CCA schedule.
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
The adjustment entered here will be deducted from (if negative) or added to (if positive) the capital cost (after November 20, 2018) of this class in the CCA workchart.
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
The adjustment entered here will be deducted from (if negative) or added to (if positive) the capital cost (after December 3, 2018) of this class on the CCA workchart.
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
The adjustment entered here will be deducted from (if negative) or added to (if positive) the undepreciated capital cost of this class on the CCA schedule.
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
Use the keyword ACB.cca to enter the ACB of the depreciable property on hand in this class.
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
Use the keyword ACB-Amount-CCA to enter the amount on which the taxpayer first claims CCA. This amount may differ from the capital cost in certain CCA classes, such as Class 54, where there is a limit on the amount of CCA deductible.
DT Max will calculate the limited cost of additions, based on the maximum amounts and tax rates applicable. This amount will automatically be carried forward for future reference for the calculations of recapture and terminal loss.
A manual entry is only required for new client files.
Use [Alt-J] to enter different values for other jurisdictions.
Disposition
Disposition disposition in the year
Proceeds.cc
Use Proceeds.cc to enter the total amount of the proceeds of disposition of an asset within this group with a description of the asset. Use [Alt-J] to enter different values for other jurisdictions.
Proceeds.cca
Use Proceeds.cca to enter the total amount of the proceeds of disposition of an asset within this group with a description of the asset.
In order to properly identify the asset being disposed of in the group, it is imperative to enter the description of the asset. The exact same description must also be entered for all keywords affiliated to the asset. DT Max will automatically search the descriptions within the group to calculate any recapture, terminal loss or capital gains.
Use [Alt-J] to enter different values for other jurisdictions.
ACB-Disp.cca
Enter the ACB of the capital assets in this group which were disposed of during the year.
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, specify "Yes" with the keyword Liquidate. Use [Alt-J] to enter different values for other jurisdictions.
ACB-Disp.cc
Enter the ACB of the capital assets in this group which were disposed of during the year.
DT Max will calculate the CCA claim, the depreciation recapture, and if the class is liquidated, the terminal loss.
If the class is liquidated, specify "Yes" with the keyword Liquidate. Use [Alt-J] to enter different values for other jurisdictions.
NAL-Disp
Use the keyword NAL-Disp to enter the description of the asset if it is disposed of to a person or partnership with which the trust deals at non-arm's length.
Exp-Disp.cca
Use Exp-Disp.cca to enter expenses associated with the disposition of assets entered in this class.
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.
RecapturOV
Use RecapturOV to override the recapture of depreciation calculated by DT Max.
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
Use TermlossOV to override the terminal loss calculated by DT Max.
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.
Deemed-Disp.cca
Use the keyword Deemed-Disp.cca to enter the reason for the deemed disposition and the date the disposition occurred.
On specified dates during the life or existence of a trust, the trust is deemed to have disposed of its capital property. The resulting gains or losses must be reported on the trust's return in the taxation year in which the dispositions are considered to have occurred.
DT Max will calculate the income on federal form T1055 and, if applicable, on Quebec schedule TP-653.
If the trust actually disposes of the property before the end of the taxation year, do not enter this keyword in the group.
The following options are applicable for the keyword Deemed-Disp.cca.
- Death of beneficiary spouse
- 21-year rule
- Migration (transfer of property)
CalcCapGain.cca
Calculate the capital gain and carry the result on schedule 1 The following options are applicable for the keyword CalcCapGain.cca.
- Calculate capital gain
- Do not calculate capital gain
Cap-GainOV.cca
Use Cap-GainOV.cca to override the gain within this group. Note that using an override here may give the impression that some of the calculations do not work. It is better to find the correct amounts and enter them. Use [Alt-J] to enter different values for other jurisdictions.
Liquidate
Use the keyword Liquidate to specify whether the class has been liquidated or not.
See ACB-Disp.cca for details.
HalfYear-CCA
Use HalfYear-CCA to override the application of the half-year rule to current year additions in classes where the rule normally applies. Some properties are not subject to the 50% rule. Some examples are those in classes 13, 14, 15, 23, 24, 27, 29, and 34, as well as some of those in class 12 such as small tools that cost less than $200.
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 you acquire the property.
CCA-Limit
Use CCA-Limit to limit the amount of capital cost allowance or cumulative eligible capital amount to be claimed on this class.
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
Use the keyword CCA-OV to override all CCA classes within a Business group.
When this keyword is used, no CCA schedule is generated and you must ensure that all carryforward amounts are correct. Use [Alt-J] to enter different values for other jurisdictions.
CCA-Class
Choose the applicable 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%
- Class 1 - 6% (after March 18, 2007)
- Class 1 - 10% (after March 18, 2007)
- Class 1 - 10% (LNG after February 19, 2015)
- Class 2 - 6%
- Class 3 - 5%
- Class 4 - 6%
- Class 5 - 10%
- Class 6 - 10%
- Class 7 - 15%
- Class 8 - 20%
- Class 8 - 20% (Class 8.1 - 33 1/3%)
- Class 9 - 25%
- Class 10 - 30%
- Class 10.1 - 30%
- Class 11 - 35%
- Class 12 - 100%
- Class 13 SL
- Class 14 SL
- Class 14.1 - 7% (other ECP before 2017)
- Class 14.1 - 7% (farming/fishing ECP before 2017)
- Class 14.1 - 5% (ECP after December 31, 2016)
- is goodwill;
- 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
- is acquired after 2016, other than
- property that is tangible or, for civil law, corporeal property,
- property that is not acquired for the purpose of gaining or producing income from business,
- 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,
- 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,
- an interest in a trust,
- an interest in a partnership,
- a share, bond, debenture, mortgage, hypothecary claim, note, bill or other similar property, or
- 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).
- Class 15 SL
- Class 16 - 40%
- Class 17 - 8%
- Class 18 - 60%
- Class 19 - 50% SL
- Class 20 - 20% SL
- Class 21 - 50% SL
- Class 22 - 50%
- Class 23 - 100%
- Class 24 - 50% SL
- Class 25 - 100%
- Class 26 - 5%
- Class 27 - 50% SL
- Class 28 - 30%
- Class 29 - 50% SL
- Class 30 - 40%
- Class 31 - 5%
- Class 32 - 10%
- Class 33 - 15%
- Class 34 - 50% SL
- Class 35 - 7%
- Class 36 - 0%
- Class 37 - 15%
- Class 38 - 30%
- Class 39 - 25% (prior to 02-26-92)
- Class 40 - 30%
- Class 41 - 25%
- 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.).
- Class 41.1 - 25%
- Class 41.2 - 25%
- Class 42 - 12%
- Class 43 - 30%
- Class 43.1 - 30%
- Class 43.2 - 50%
- Class 44 - 25%
- Class 45 - 45%
- Class 46 - 30%
- Class 47 - 8%
- Class 47 - 30% (LNG after February 19, 2015)
- Class 48 - 15%
- Class 49 - 8%
- Class 50 - 55% (after March 18, 2007)
- Class 51 - 6% (after March 18, 2007)
- Class 52 - 100% (after 27 Jan. 2009 & bef. Feb. 2011)
- 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 54 - 30% (after March 19 2019 & before 2028)
- Class 55 - 40% (after March 19 2019 & before 2028)
- Class 56 - 30% (after 1 Mar. 2020 & before 2028)
- Class 57 - 8% (after 31 Dec. 2021 & before 2041)
- (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)
- (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
- (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)
- (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)
- (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
- Land - non depreciable property
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.
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.
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 nonresidential purposes at the end of the tax year.
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
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.
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.
Railway or trolley bus systems.
Pulp mills acquired before 1962.
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.
Canoes, rowboats, and most other vessels and their motors, furniture, and fittings. For more details, see Interpretation Bulletin IT-267, Capital Cost Allowance - Vessels.
Property that you did not include in any other class. Some examples are fixtures, furniture, machinery, photocopiers, refrigeration equipment, telephones, and tools costing $500 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.
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.
Aircraft, including furniture or equipment attached to the aircraft, and spare parts.
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.
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.
Advertising signs and billboards which are used to earn rental income and were acquired before 1988.
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.
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.
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.
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 CECAThe 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.
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 CECAThe 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.
Property to be included in Class 14.1
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.
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.
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.
Roads, parking lots, sidewalks, airplane runways, storage areas, or similar surface construction.
Pre-May 26/76 motion picture films.
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.
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.
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.
Most power-operated, movable equipment you bought before 1988 that you use for excavating, moving, placing, or compacting earth, rock, concrete, or asphalt.
Leasehold interests, licenses and buildings on or with respect to the Montreal or Vancouver Expo sites.
Pollution control equipment. The Ontario Current Cost Adjustment is available for purchases of Class 24 and 27 equipment made in or after 1992.
Pre-Oct.23/68 property acquired by Crown or municipally-owned corporations.
Catalysts and pre-May 22/79 deuterium-enriched water.
Pollution control equipment. The Ontario Current Cost Adjustment is available for purchases of Class 24 and 27 equipment made in or after 1992.
Pre-1988 mining equipment used for mine expansion and development.
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).
Pre-1988 telecommunications satellites or space crafts.
Class 31 and 32 pre-June 18/87 certified MURB buildings with a cost exceeding $50,000 should be entered in separate classes.
Class 31 and 32 pre-June 18/87 certified MURB buildings with a cost exceeding $50,000 should be entered in separate classes.
Timber resource property.
Certified energy conservation or energy-efficient equipment.
Railway cars.
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.
Amusement park land improvements, buildings and equipment.
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.
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.
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.
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:
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 per cent CCA rate) includes certain oil sands property (other than specified oil sands property) acquired after March 18, 2007.These separate classes of properties remain eligible for the full 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 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% 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 and only the regular 25 per cent CCA rate will apply for assets in this Class after 2014.
Class 41.2 (25% 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 would be included in paragraph (a) or (a.1) of Class 41.Application: Deemed to have come into force on March 21, 2013.
Class 41.2 (25% CCA rate) in Schedule II to the Regulations includes mining property acquired after March 20, 2013, other than oil sands property or eligible mine development property. Paragraph (a) of Class 41.2 includes mining property acquired after March 20, 2013 and before 2021 that, if the property had been acquired before March 21, 2013, would have been included in paragraph (a), (a.1) or (a.2) of Class 41. Paragraph (b) of Class 41.2 includes mining property acquired after 2020 that, if the property had been acquired before March 21, 2013, would have been included in paragraph (a), (a.1) or (a.2) of Class 41.
Under current rules, accelerated CCA is available in the form of an additional allowance which supplements the regular 25% CCA rate. It allows a taxpayer to deduct, in computing income for a taxation year, up to 100% 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 (after deducting regular CCA).
Subsections 1101(4g) and (4h), prescribe separate classes for certain properties that are included in paragraph (a) of Class 41.2. 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.
Fibre optic cables.
Manufacturing or processing equipment acquired after Feb.25/92.
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.
Includes certain high-efficiency cogeneration systems and renewable energy generation equipment acquired on or after February 23, 2005, and before 2025.Eligible water-current equipment and gasification equipment acquired after February 11, 2014, that have not been used or acquired for use before February 11, 2014 will be included in class 43.2.
Patents and rights to use patented information.
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.
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.
Includes transmission and distribution equipment and structures (excluding buildings) of a distributor of electrical energy acquired on or after February 23, 2005.
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.
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).
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.
Computer equipment and systems software acquired 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.
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:
Class 53 includes machinery and equipment used in Canadian manufacturing acquired after 2015 and before 2026.
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/ACCA 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.
Use this option to enter a property that is part of a CCUS project of a taxpayer and that is
Use this option to enter a property that is part of a CCUS project of a taxpayer, and that is
ÿ
Use this option to enter a property that is an expenditure incurred by the taxpayer after 2021 and that is
Use this option to enter a property that is an expenditure incurred after 2021 by the taxpayer in
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.
Land (non-depreciable property) can be entered here or in the CapitalProp 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
Use the keyword Description.ca to enter a description of the asset included in this CCA class.
Purch-Date
Use the keyword Purch-Date to enter the date of purchase of the automobile.
Purch-Date.cca
Use the keyword Purch-Date.cca to enter the date of purchase of the property.
UCC-Open
Use the keyword UCC-Open to enter the opening undepreciated capital cost or cumulative eligible capital.
Use [Alt-J] to enter different values for other jurisdictions.
Mine-Income
Use the keyword Mine-Income to enter the income for the year from the mine before making any deduction under paragraph (x), (y), (y.1), (ya) or (ya.1), section 65, 66, 66.1, 66.2 or 66.7 of the Act or section 29 of the Income Tax Application Rules. Use [Alt-J] to enter different values for other jurisdictions.
LNG-Income
Use the keyword LNG-Income to enter the income for the year from the eligible liquefaction activities in respect of the eligible liquefaction facility. Use [Alt-J] to enter different values for other jurisdictions.
Class12-Que
Use the keyword Class12-Que to specify whether this is a class 12 for Quebec tax purposes. If so, DT Max will treat it as such.
Class18-Que
Use the keyword Class18-Que to specify whether this is a class 18 for Quebec tax purposes. If so, DT Max will treat it as such.
Class18-Ded
Use the keyword Class18-Ded to enter the Quebec supplementary deduction on class 18 additions.
A taxpayer may claim a supplementary deduction equal to 85% of the CCA claimed for a taxation year.
The supplementary deduction is not subject to CCA recapture upon disposition of the property.
CCA-Type
Use the keyword CCA-Type to indicate the type of CCA allocation to be made. The following options are applicable for the keyword CCA-Type.
- Business level (enter full amts - 100%)
- Partner level (enter prorated amounts)
- Business use of home
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.
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.
Choose this option to indicate that the CCA pertains to a business use of home.
CCA-Factor
Use the keyword CCA-Factor to enter the portion of CCA class used for business or employment purposes.
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
Use Additions.db to enter the cost of current year capital additions (acquisitions) to this CCA class (determined on a declining balance basis).
The amounts and descriptions entered here will appear on the CCA schedule.
If the addition is not subject to the half-year rule, make the entry in a CCA class specified as not being subject to the half-year rule. Use [Alt-J] to enter different values for other jurisdictions.
Additions-AIIP.db
Use Additions-AIIP.db to enter the cost of current year capital additions acquired after November 20, 2018 which are eligible for the accelerated capital cost allowance (CCA) for this class, determined on a declining balance basis.
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.
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
Use the keyword Add-Included-Taxes to indicate whether the amount entered as additions includes the sales tax.
This information is required for CCA classes in which the amount of CCA deductible is limited. DT Max will calculate the allowable portion based on the maximum amount plus the applicable sales tax.
Additions-AIIPQ.db
Use Additions-AIIPQ.db to enter the cost of current year capital additions acquired after December 3, 2018 which are eligible for the accelerated capital cost allowance (CCA)for this class, determined on a declining balance basis.
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 investmentsnot 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
Use Additions.sl to enter current year additions to this CCA class (determined on a straight-line basis).
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
Use Additions-AIIP.sl to enter current year additions acquired after November 20, 2018 which are eligible for the accelerated capital cost allowance (CCA) for this class, determined on a straight-line basis.
The amount and description 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
Use Additions-AIIPQ.sl to enter current year additions acquired after December 3, 2018 which are eligible to the accelerated Quebec capital cost allowance (CCA) for this class, determined on a straight-line basis.
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.
Que-Elig-AddDeduct
Use the keyword Que-Elig-AddDeduct to indicate whether the property is eligible for the Quebec additional capital cost allowance.
For Quebec purposes, to encourage continued investment in manufacturing and processing equipment, clean energy generation equipment, general-purpose electronic data processing equipment and certain intellectual property, an additional capital cost allowance of 30% is introduced. This additional capital cost allowance will be permanent.
The tax legislation will thereby be amended to allow a taxpayer who acquires contemplated property, after the day of publication of Information Bulletin 2018-9, to deduct in computing income from a business for a taxation year, an amount corresponding to 30% of the amount deducted in computing such income, for the previous taxation year, on account of the capital cost allowance for the contemplated property.
For the purposes of the additional capital cost allowance of 30%, contemplated property will be, on the one hand, a particular property that is:
- machinery or equipment used in manufacturing or processing, namely, property included in Class 53
of Schedule B to the Regulation respecting the Taxation Act, other than property that had allowed
or could have allowed the taxpayer to claim the additional capital cost allowance of 60%, or property
acquired after 2025 that is property included in Class 43 of the schedule, but that would have been
included in Class 53 had it been acquired in 2025;
- clean energy generation equipment, namely, property included in Class 43.1 of the schedule or property
included in Class 43.2 of the schedule
- property composed of general-purpose electronic data processing equipment and systems software for that
equipment, namely, property included in Class 50 of the schedule, other than property that had allowed
or could have allowed the taxpayer to claim the additional capital cost allowance of 60%.
The particular property 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 Quebec in the course of carrying on a business for a period of at least 730 consecutive days after the property's use began (hereinafter, "730-days period") by the taxpayer or a person with whom the taxpayer does not deal at arm's length and in the circumstances in which a transfer, amalgamation or winding-up occurred.
More specifically, if, at any time in the 730-days period, an event occurs that prevents one of the conditions allowing a particular property to be a contemplated property from being met, the particular property will not be a contemplated property.
For the purposes of the additional capital cost allowance of 30%, contemplated property will be, on the other hand, a qualified intellectual property.
A separate class will be provided for properties of a same class for which a taxpayer may claim the additional capital cost allowance of 30%.
The following options are applicable for the keyword Que-Elig-AddDeduct.
- Additional CCA of 30% (deductible next taxation year)
- Not eligible
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.Select this option for DT Max T3 to automatically calculate the additional deduction of 30% which will be applied to the following taxation year. The new acquisition eligible for this deduction must be entered in a separate class as required by the Quebec government.
QueAddDeduction
Additional 35% deduction on CCA amount claimed (Quebec only) Additional capital cost allowanceA taxpayer will be entitled to the allowance for two taxation years: the taxation year in which the property is first put to use and the taxation year following that year.
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
The adjustment entered here will be deducted from (if negative) or added to (if positive) the capital cost of this class on the CCA schedule.
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
The adjustment entered here will be deducted from (if negative) or added to (if positive) the capital cost (after November 20, 2018) of this class in the CCA workchart.
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
The adjustment entered here will be deducted from (if negative) or added to (if positive) the capital cost (after December 3, 2018) of this class on the CCA workchart.
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
The adjustment entered here will be deducted from (if negative) or added to (if positive) the undepreciated capital cost of this class on the CCA schedule.
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
Use the keyword ACB.cca to enter the ACB of the depreciable property on hand in this class.
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
Use the keyword ACB-Amount-CCA to enter the amount on which the taxpayer first claims CCA. This amount may differ from the capital cost in certain CCA classes, such as Class 54, where there is a limit on the amount of CCA deductible.
DT Max will calculate the limited cost of additions, based on the maximum amounts and tax rates applicable. This amount will automatically be carried forward for future reference for the calculations of recapture and terminal loss.
A manual entry is only required for new client files.
Use [Alt-J] to enter different values for other jurisdictions.
Disposition
Disposition disposition in the year
Disp-Date.cca
Use the keyword Disp-Date.cca to enter the date of disposition of the property.
Proceeds.cc
Use Proceeds.cc to enter the total amount of the proceeds of disposition of an asset within this group with a description of the asset. Use [Alt-J] to enter different values for other jurisdictions.
Proceeds.cca
Use Proceeds.cca to enter the total amount of the proceeds of disposition of an asset within this group with a description of the asset.
In order to properly identify the asset being disposed of in the group, it is imperative to enter the description of the asset. The exact same description must also be entered for all keywords affiliated to the asset. DT Max will automatically search the descriptions within the group to calculate any recapture, terminal loss or capital gains.
Use [Alt-J] to enter different values for other jurisdictions.
ACB-Disp.cca
Enter the ACB of the capital assets in this group which were disposed of during the year.
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, specify "Yes" with the keyword Liquidate. Use [Alt-J] to enter different values for other jurisdictions.
ACB-Disp.cc
Enter the ACB of the capital assets in this group which were disposed of during the year.
DT Max will calculate the CCA claim, the depreciation recapture, and if the class is liquidated, the terminal loss.
If the class is liquidated, specify "Yes" with the keyword Liquidate. Use [Alt-J] to enter different values for other jurisdictions.
NAL-Disp
Use the keyword NAL-Disp to enter the description of the asset if it is disposed of to a person or partnership with which the trust deals at non-arm's length.
Exp-Disp.cca
Use Exp-Disp.cca to enter expenses associated with the disposition of assets entered in this class.
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.
Bus-Reduct
Use the keyword Bus-Reduct to enter the business reduction to be applied on the business gain resulting from the disposition of eligible capital property.
This will limit the amount applied automatically by DT Max. Use [Alt-J] to enter different values for other jurisdictions.
RecapturOV
Use RecapturOV to override the recapture of depreciation calculated by DT Max.
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
Use TermlossOV to override the terminal loss calculated by DT Max.
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.
NR-DeemDisp-QC
Use the keyword NR-DeemDisp-QC to enter the date immediately before the trust becomes resident in Canada.
An inter vivos trust that becomes resident in Canada after March 19, 2012, is deemed to have disposed of, immediately before becoming resident in Canada, any specified immovable that it owned at that time, for proceeds equal to the FMV of the immovable at that time.
The capital gain arising from the deemed disposition will be declared on Schedule A of the Quebec trust return. A new capital cost for the specified immovable will be carried forward for Quebec.
Deemed-Disp.cca
Use the keyword Deemed-Disp.cca to enter the reason for the deemed disposition and the date the disposition occurred.
On specified dates during the life or existence of a trust, the trust is deemed to have disposed of its capital property. The resulting gains or losses must be reported on the trust's return in the taxation year in which the dispositions are considered to have occurred.
DT Max will calculate the income on federal form T1055 and, if applicable, on Quebec schedule TP-653.
If the trust actually disposes of the property before the end of the taxation year, do not enter this keyword in the group.
The following options are applicable for the keyword Deemed-Disp.cca.
- Death of beneficiary spouse
- 21-year rule
- Migration (transfer of property)
CalcCapGain.cca
Calculate the capital gain and carry the result on schedule 1 The following options are applicable for the keyword CalcCapGain.cca.
- Calculate capital gain
- Do not calculate capital gain
Cap-GainOV.cca
Use Cap-GainOV.cca to override the gain within this group. Note that using an override here may give the impression that some of the calculations do not work. It is better to find the correct amounts and enter them. Use [Alt-J] to enter different values for other jurisdictions.
Liquidate
Use the keyword Liquidate to specify whether the class has been liquidated or not.
See ACB-Disp.cca for details.
CECA
Use CECA in the year of disposition of eligible capital property.
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 (per subs. 20(4.2)), and a recovery of a bad debt is added back at 3/4 of the amount (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 (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.
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The following options are applicable for the keyword CECA.
- CECA after 1987
- CECA prior to 1988
Annual-CCA
Enter the amount of the annual capital cost allowance for assets in the opening balance of this class and the number of months remaining in the life of the asset(s) in Annual-CCA . For additions to this class, DT Max will calculate the Annual-CCA to carry forward next year (based upon the amount and number of months) entered in the Additions.sl keyword. Use [Alt-J] to enter different values for other jurisdictions.
Annual-CCA.sl
Enter the amount of the annual capital cost allowance for assets in the opening balance of this class. For additions to this class, DT Max will calculate the Annual-CCA.sl to carry forward next year. Use [Alt-J] to enter different values for other jurisdictions.
Timber-Rate
For Class 15, capital cost allowance is calculated based upon the amount of cords or board feet of timber cut in the taxation year. Calculate the rate which DT Max will apply to the additions entered for this class; enter the capital cost allowance for assets in the opening balance in the Annual-CCA.sl keyword.
HalfYear-CCA
Use HalfYear-CCA to override the application of the half-year rule to current year additions in classes where the rule normally applies. Some properties are not subject to the 50% rule. Some examples are those in classes 13, 14, 15, 23, 24, 27, 29, and 34, as well as some of those in class 12 such as small tools that cost less than $200.
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 you acquire the property.
CCA-Limit
Use CCA-Limit to limit the amount of capital cost allowance or cumulative eligible capital amount to be claimed on this class.
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
Use the keyword CCA-OV to override all CCA classes within a Business group.
When this keyword is used, no CCA schedule is generated and you must ensure that all carryforward amounts are correct. Use [Alt-J] to enter different values for other jurisdictions.
RestrictCCA
Use the keyword RestrictCCA to indicate whether you would like DT Max to limit the CCA claim on this CCA class.
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 you have 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 you have 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.
CCA-PartXVII
Use the keyword CCA-PartXVII to specify the CCA class under the Part XVII method. The following options are applicable for the keyword CCA-PartXVII.
- Class 1 - 4%
- Class 1 - 6% (after March 18, 2007)
- Class 1 - 10% (after March 18, 2007)
- Class 1 - 10% (LNG after February 19, 2015)
- Class 2 - 6%
- Class 3 - 5%
- Class 6 - 10%
- Class 7 - 15%
- Class 8 - 20%
- Class 8 - 20% (Class 8.1 - 33 1/3%)
- Class 9 - 25%
- Class 10 - 30%
- Class 16 - 40%
- Class 17 - 8%
- Class 51 - 6% (after March 18, 2007)
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.
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.
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 nonresidential purposes at the end of the tax year.
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
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.
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.
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.
Canoes, rowboats, and most other vessels and their motors, furniture, and fittings. For more details, see Interpretation Bulletin IT-267, Capital Cost Allowance - Vessels.
Property that you did not include in any other class. Some examples are fixtures, furniture, machinery, photocopiers, refrigeration equipment, telephones, and tools costing $500 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.
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.
Aircraft, including furniture or equipment attached to the aircraft, and spare parts.
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.
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.
Roads, parking lots, sidewalks, airplane runways, storage areas, or similar surface construction.
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.
Description.ca
Use the keyword Description.ca to enter a description of the asset included in this CCA class.
Purch-Date
Use the keyword Purch-Date to enter the date of purchase of the automobile.
Purch-Date.cca
Use the keyword Purch-Date.cca to enter the date of purchase of the property.
Rate
Use the keyword Rate to specify the annual allowance rate for this class under the Part XVII method for the capital cost allowance (CCA).
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
Use the keyword Cost to specify the business portion of the cost of the asset.
Disposition
Disposition disposition in the year
Disp-Date.cca
Use the keyword Disp-Date.cca to enter the date of disposition of the property.
Date-Disp.cc
Use the keyword Date-Disp.cc to specify the date of disposition of the asset under Part XVII.
DT Max will claim the allowance for the number of months during which the trust owned the asset.
There is no recapture or terminal loss under Part XVII.
Liquidate
Use the keyword Liquidate to specify whether the class has been liquidated or not.
See ACB-Disp.cca for details.
HalfYear-CCA
Use HalfYear-CCA to override the application of the half-year rule to current year additions in classes where the rule normally applies. Some properties are not subject to the 50% rule. Some examples are those in classes 13, 14, 15, 23, 24, 27, 29, and 34, as well as some of those in class 12 such as small tools that cost less than $200.
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 you acquire the property.
CCA-Limit
Use CCA-Limit to limit the amount of capital cost allowance or cumulative eligible capital amount to be claimed on this class.
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
Use the keyword CCA-OV to override all CCA classes within a Business group.
When this keyword is used, no CCA schedule is generated and you must ensure that all carryforward amounts are correct. Use [Alt-J] to enter different values for other jurisdictions.
Prior-CCA
Use the keyword Prior-CCA to enter the accumulated amount of CCA claimed in prior years for this asset under the Part XVII method.
Home-Office
Home-Office portion of the home used for business purposes
Home-Situation
Home-Situation situations The following options are applicable for the keyword Home-Situation.
- Regular cases - the 50% limit applies
- Special situations - the 50% limit does not apply
- 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 all other cases, the 50% limit applies.
If the taxpayer is in either of the following situations:In these cases, the 50% limit does not apply.
Home-Own-Use
Home-Own-Use portion of the home used for personal purposes
Home-HeatUse
Enter the percentage of heat and light expenses that is attributable to the personal use portion. This proportion is applicable for Québec-based Business only. The personal portion will be reported on line 501 of the TP-80.
Home-Off-Exp
Home-Off-Exp home office expenses The following options are applicable for the keyword Home-Off-Exp.
- Heat
- Electricity
- Insurance
- Maintenance and repairs
- Mortgage interest
- Property taxes
- Utilities (telecommunications)
- Other expenses (specify)
You can deduct expenses for heating if you incurred the expenses to earn income.
You can deduct expenses electricity if you incurred the expenses to earn income.
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.
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).
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.
You can deduct expenses for telephone if you incurred the expenses to earn income.
Home-OthExpQ
For fiscal periods starting after May 9, 1996, only 50% of the home office expenses are deductible for Quebec tax purposes. If you have home offices expenses not subject to personal use, enter those expenses with Home-OthExpQ. The amount entered will be reported on line 526 of form TP-80 and will not be subject to the 50% limitation above.
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
Indicate the percentage (%) share of business use of the home to claim.
Home-Off-CF
Use the keyword Home-Off-CF to enter the amount of unused home office expenses carried forward from the previous taxation year. Note that this amount is usually determined by DT Max.
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
Use this keyword to indicate the amount of home office expenses that you want to claim. The amount claimed should not exceed the amount of actual home office expenses indicated with Home-Off-Exp (after deducting the own-use percentage indicated with Home-Own-Use).
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 form.
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
Home-Adj-OV Override the adjustment to business-use-of-home expenses (Line 9934)
See the CRA's general income tax guide:
Line 10 - Deemed dispositions income or losses
PartShare-OV
Use the keyword PartShare-OV to enter the partner's share of gross and net partnership income. The following options are applicable for the keyword PartShare-OV.
- Gross income from partnership
- Net income from partnership
Partner's share of partnership gross income as shown in box 29 of the T5013 Supplementary. DT Max will report this amount on line 8124 of the relevant Revenue Canada business statement as gross income.
Partner's share of partnership net income as shown in box 18 or box 20 of the T5013 Supplementary. DT Max will report this amount on line 8237 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
Use Partner-Inc to enter income earned in addition to the partnership income.
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
Use Partner-Exp to enter business expenses incurred by the partner in addition to the partnership's expenses.
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)
- Tradesperson's tools expenses (for employees)
- Apprentice mechanic tools expenses (for employees)
- Musical instrument expenses other than CCA
- Artists' employment expenses
- Union, professional, or similar dues
- CCA - musical instruments, aircraft
Adjustments
Use the keyword Adjustments to enter the adjustments to income required to obtain net income for tax purposes.
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 CAIS, under "cash basis", enter other deductions to be claimed on line 9940 of the T1163 form titled "CAIS account information and statement of farming activities for individuals".
Net-Inc-Opt
The Net-Inc-Opt keyword is only relevant for a farming business using the cash-basis method of accounting.
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 CRA's general income tax guide:
Line 10 - Deemed dispositions income or losses
Addit-Income
This is the the amount of additional income resulting from changing the fiscal period of a business to a calendar year-end, or from electing the alternative method to maintain an off-calendar year-end.
This amount is determined by DT Max according to sections 34.1 and 34.2 of the Income Tax Act, and it may be overriden using this keyqord.
The following options are applicable for the keyword Addit-Income.
- Additional business income
- 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 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.
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.
QueEnclosedT1139
QueEnclosedT1139 is a copy of form T1139 enclosed with the Quebec return?
Bus-Partner
Use the keyword Bus-Partner to enter the family names of your client's business partners and their respective shares in the business.
First-Name.m
First-Name.m first name
Street.m
Use the keyword Street.m to enter the name of the street.
City.m
Use the keyword City.m to enter the name of the city.
Province.m
Use the keyword Province.m to enter the name of the province.
PostCode.m
Use the keyword PostCode.m to enter the postal code.
SIN.m
Use the keyword SIN.m to enter the partner's social insurance number.
As of 1996, this entry is for information purposes only and does not appear on the tax return.
Agri-PIN-No
Enter the AgriStability/AgriInvest participant identification Number (PIN)
This information is requested on page 5 of the AgriStability/AgriInvest statement for the partnership information.
Id-Number.m
Use the keyword Id-Number.m to enter the Quebec identification number.
Partner-Hist
Use the keyword Partner-Hist to enter the partner's share of the partnership followed by his/her name.
See the CRA's general income tax guide:
Line 10 - Deemed dispositions income or losses
Year.n
Choose the relevant year of the partnership information, regarding the retroactive gross margin, if applicable.
If the information remains unchanged from year to year, do not enter it for each year. Instead, choose each of the years to which that information applies (the keyword Year.n can be repeated if need be).
If however the information differs from one year to the next, open a new Partner-Hist sub-group to enter the information.
The following options are applicable for the keyword Year.n.
SIN.m
Use the keyword SIN.m to enter the partner's social insurance number.
As of 1996, this entry is for information purposes only and does not appear on the tax return.
Agri-PIN-No
Enter the AgriStability/AgriInvest participant identification Number (PIN)
This information is requested on page 5 of the AgriStability/AgriInvest statement for the partnership information.
Livestock-Disast
Livestock-Disast whether productive capacity of operation decreased due to disaster (T1273 Section 7)
Crop-Disaster
Crop-Disaster whether productive capacity of operation decreased due to disaster (T1273 Section 7)
See the CRA's general income tax guide:
Line 10 - Deemed dispositions income or losses
Insur-Contract
Insur-Contract contract numbers from participation in production / crop insurance (T1273 Section 7)
Livestock-Inv$
Livestock-Inv$ livestock inventory description and code - Price to be assign [T1273 Section 7]
EndInventory.b
EndInventory.b column c - livestock inventory - ending inventory [T1273 Section 7]
YearEndPrice.b
YearEndPrice.b column d - livestock inventory - end of year price ($) [T1273 Section 7]
Livestock-Inv
Livestock-Inv livestock inventory description and code - No price to be assign [T1273 Section 7]
EndInventory.b
EndInventory.b column c - livestock inventory - ending inventory [T1273 Section 7]
Crop-Inventory$
Crop-Inventory$ grade and code of crop inventory - Price to be assigned [T1273 Section 8]
Units.inv
Units.inv column c - code for the unit of measurement used for the commodity [T1273 Section 8] The following options are applicable for the keyword Units.inv.
Acres.inv
Acres.inv column d - number of acres used to produce each crop [T1273 Section 8]
UnseedableAcres
Used to complete corresponding questions in T1273 Section 8.
Quty-Produced
Quty-Produced column f - quantity of the crop produced in the program year [T1273 Section 8]
EndInventory.a
EndInventory.a column g - crop inventory - ending inventory [T1273 Section 8]
YearEndPrice.a
YearEndPrice.a column h - crop inventory - end of year price ($) [T1273 Section 8]
Crop-Inventory
Crop-Inventory grade and code of crop inventory - No price to be assigned [T1273 Section 8]
Units.inv
Units.inv column c - code for the unit of measurement used for the commodity [T1273 Section 8] The following options are applicable for the keyword Units.inv.
Acres.inv
Acres.inv column d - number of acres used to produce each crop [T1273 Section 8]
UnseedableAcres
Used to complete corresponding questions in T1273 Section 8.
Quty-Produced
Quty-Produced column f - quantity of the crop produced in the program year [T1273 Section 8]
EndInventory.a
EndInventory.a column g - crop inventory - ending inventory [T1273 Section 8]
YearEndPrice.a
YearEndPrice.a column h - crop inventory - end of year price ($) [T1273 Section 8]
Other-Acres
Other-Acres use of the other acres (T1273 Section 8) The following options are applicable for the keyword Other-Acres.
- Number of summerfallow acres
- Number of pasture acres
- Number of wasteland acres
Add-Livestock
Add-Livestock units for livestock owned, rented/share of livestock lease agreements (T1273 Section 9)
OtherLivestock
OtherLivestock total units for other livestock [T1273 Section 9] The following options are applicable for the keyword OtherLivestock.
- Number of females that have birthed
- Number of animal feed days
- Number of animals fed
- Number of KGs produced
- Number of producing hens
- Number sold
- Number of breeding sets
- Number of kg of butterfat/day
- Number of bulls producing
- Number of hives producing
- Number of gallons of bees pollinating
- Number of straws sold
- Number of grams contracted
- Number of females in milk prod. herd
- Other
Code-Units.oth
Code-Units.oth select code and enter number of units of commodity [T1273 Section 9]
PurchaseInputs
PurchaseInputs part A - purchased inputs valuation (T1273 Section 10)
End-Value
End-Value value at end of current fiscal period (T1273)
DeferredIncome
DeferredIncome part B - deferred income and receivables (T1273 Section 11)
Ending-Value
Ending-Value ending receivables and income deferred to next fiscal period [T1273 Section 11]
AccountsPayable
AccountsPayable part C - accounts payable (T1273 Section 12)
End-Value
End-Value value at end of current fiscal period (T1273)
NothingToReport
NothingToReport bypass the default answer regarding section 12.
See the CRA's general income tax guide:
Line 10 - Deemed dispositions income or losses
Net-Inc-OV.b
Use the keyword Net-Inc-OV.b to override the net income amount calculated by DT Max if you wish to supply your own business income schedules.
Note that by proceeding this way, you will not be able to efile because the information required for SFD's (selected financial data) is not entered. Use [Alt-J] to enter different values for other jurisdictions.
Receipts
Receipts all NISA Fund No. 2 receipts
Lifetime
Use the keyword Lifetime to enter the amount of income received by the spouse beneficiary of the trust while they are or were alive.
Rest-Farm-Losses
If farming is not the taxpayer's main source of income, select "Yes" in Rest-Farm-Losses so that DT Max may properly restrict farm losses where necessary. Each year the taxpayer has a farm loss, a review of the situation is necessary to determine if farming is the taxpayer's main source of income. It is important to do this, since a farming loss may be restricted in one year but not in another.
The following options are applicable for the keyword Rest-Farm-Losses.
- Yes
- No
Country.busf
Use the keyword Country.busf to select the country of origin of the foreign income.
Tax-Paid.for
Use the keyword Tax-Paid.for to enter the total amount of foreign tax paid.
Once data is entered, DT Max will calculate the following tax credits:
- federal foreign tax credits (T3FFT) - one per country
- provincial foreign tax credit (T3PFT)
- Quebec foreign tax credit for foreign business income
In order for the calculations to be performed properly, you must enter the country of reference in Country.busf.
The foreign tax credits determined on forms T3FFT, T3PFT and TP-772 are calculated on a country-by-country basis. You can override the federal business foreign tax credit with the keyword Foreign-Cr-OV. These overrides will be carried through to the provincial foreign tax credit calculation (T3PFT or TP-772 for Quebec).
Tax-Treaty.for
Use the keyword Tax-Treaty.for to enter amounts to be deducted from net income for tax purposes due to a tax treaty with Canada.
The total treaty-exempt income will be deducted from net income for tax purposes on the tax returns filed.
Perm-Establish
Perm-Establish whether the business has a permanent establishment in a foreign country The following options are applicable for the keyword Perm-Establish.
- Yes
- No
See the CRA's general income tax guide:
Line 10 - Deemed dispositions income or losses
TP-785-2-6
Where an inter vivos trust plans to sell a specified immovable after becoming resident in Canada, it must complete and send form TP-785.2.6, Notice of the Planned Disposition of a Specified Immovable Held by an Inter Vivos Trust at the Time the Trust Became Resident in Canada. This is to verify that the tax payable on the deemed disposition was paid, and a compliance certificate can be issued to the trust.
Purchaser-Name
Use the keyword Purchaser-Name to enter each purchase. A separate notice will be completed for each purchaser and each disposition.
NEQ.nr
NEQ.nr purchaser's Quebec enterprise number (NEQ)
Ident-No.nr
Ident-No.nr purchaser's identification number
SIN.nr
SIN.nr purchaser's social insurance number
Street.nr
Street.nr street name and number of the purchaser
City.nr
City.nr name of the city
Province.nr
Province.nr name of province
PostCode.nr
PostCode.nr postal code
Business-Id.r
Use the keyword Business-Id.r to enter the name of the business in which there is a planned disposition for purposes of the form TP-785.2.6. The name must be typed exactly the same way as it is in the keyword Business-Id in the Business group. DT Max will then retrieve the required information from the Business group to complete section 2, "Information about the specified immovable".
Foreign-Tax
The keyword Foreign-Tax opens a group that enables you to enter information concerning foreign credits and deductions specific to a country.Information entered in this group will apply strictly to the country chosen.
See the CRA's general income tax guide:
Line 44 - Total federal tax payable
Foreign-Bus-CF
Use the keyword Foreign-Bus-CF to enter foreign business tax credits carried forward.
This entry is only required for new client files. Amounts from prior years are carried forward by DT Max.
Enter the country of origin of the credit.
The following options are applicable for the keyword Foreign-Bus-CF.
- 1st prior year
- 2nd prior year
- 3rd prior year
- 4th prior year
- 5th prior year
- 6th prior year
- 7th prior year
- 8th prior year
- 9th prior year
- 10th prior year
Foreign-Cr-OV
Use the keyword Foreign-Cr-OV to override the amount of federal and/or provincial foreign tax credits calculated on forms T3FFT, T3PFT and/or TP-772.
A separate entry is required for business and non business foreign tax credits.
The following options are applicable for the keyword Foreign-Cr-OV.
- Federal non-business foreign tax credit
- Provincial non-business foreign tax credit
- Provincial non-business foreign tax credit (Qc)
- Federal business foreign tax credit
- Provincial business foreign tax credit
Ded-20(12)-OV
Use the keyword Ded-20(12)-OV to enter the amount of federal foreign tax deduction to be claimed under subsection 20(12).
DT Max will enter this amount as other deductions from total income on line 40 of the federal return and on line 70 of the Quebec tax return.
See the CRA's general income tax guide:
Line 44 - Total federal tax payable