What's new for T1/T3 version 10.20?

The latest DT Max program update is now available for downloading. It features the T1/TP-1 program for tax years 1996 to 2006 inclusively. It also includes the T3/TP-646 program for year-ends ranging from 2003 to 2007 inclusively.

Version 10.20 also marks the second CD-Rom release of the 2006 tax calculation module.

In this version...

Known issues fixed in version 10.20
Version highlights
Improved data entry for the RELATEDPARTY keyword
New keywords
Modified keywords

Version highlights
Modified forms
Modified keywords
New forms

DT Max T1

Known issues fixed in version 10.20

Pension income amount
Irrelevant Quebec carryforwards
Employment expense allowance is not deducted on TP-59

Version highlights

• With version 10.20, there are no more forms with preliminary status.
• The automated calculation of Quebec employment expenses restricted by commission income has been implemented.
• GST credit calculations have been updated with values for the period of July 2007 to June 2008.
• CTB (Child Tax Benefits ) estimate calculations have been updated with benefit rates for the period of July 2007 to June 2008.
  

Improved data entry for the RELATEDPARTY keyword

Quebec

A correction has been made regarding certain cases, where two instances of the RelatedParty keyword group were found in the taxpayer's file and DT Max would not include the income of the non processed spouse on Quebec schedule B and/or K.

New keywords

Special dues reimbursed - Syndicat de la fonction publique du Québec

The new Reimb-SFPQ-Dues keyword is used to enter the amount of reimbursement of special dues received. The entry will appear on federal line 130 and on Quebec line 373 as a reduction of union dues. These are amounts that the SFPQ (Syndicat de la fonction publique du Québec) reimbursed for special dues that were made between July 2003 and January 2006.


Business group


A Quebec recognized forest producer may ask to have a portion of income from the sale of timber averaged over a maximum of four years. The income-averaging measure allows the deduction, in calculating the taxable income, of a maximum of 80% of the income from the sale, to a purchaser with an establishment in Québec, of timber relating to the operation of a private woodlot.


Use the new DED-FORESTAVERAG keyword to enter the amount of deduction for income-averaging for forest producers that will appear on line 297 of the TP-1.

Modified keywords

Optimize group

In order to allow for box 92 (QST credit) to be ticked for persons who cannot claim the amount for person living alone, an option has been added to the Optimize group.

SPLIT-INCOME group

A new option has been added for the Quebec split income:

• Taxable dividends (other than eligible before 24/03/06)



Bankruptcy GROUP

Deduction for workers

On the federal return, the Canada employment amount is a non-refundable tax credit which appears on line 363 of schedule 1 that can be claimed on both the pre-bankruptcy and post-bankruptcy returns. The total amount calculated for both bankruptcy returns cannot exceed $250 in 2006.

On the Quebec return, the Deduction for workers is deducted from income on line 201 and can also be claimed on both returns pertaining to a bankruptcy. The $500 amount can be deducted on both bankruptcy returns.

With version 10.20, DT Max carries over in the PREBANK-INFO keyword the amount deducted on line 363 of the federal return under the new option Canada employment amount.

Furthermore, we are currently awaiting regulations from Revenu Quebec on QPIP premiums and bankruptcies. We will keep you informed of the developments on the subject.

DT Max T3

Version highlights

DT Max T3 version 10.20 change highlights:

• Introduction of multiple jurisdictions calculations via forms T2203 /TP-22 &TP-25.
• Implementation of section 20(1) (bb) in regards to management fee application.
• Quebec Alternative Minimum Tax form update.
• Addition of a T-Slip summary per user suggestion.
• Miscellaneous form updates for 2006.
  

Modified forms

Federal

T1172 Additional Tax on Accumulated Income Payments from RESPs
T1273 STATEMENT A - Harmonized CAIS Program Information and Statement of Farming Activities for Individuals - 2006
T2036 Provincial or Territorial Foreign Tax Credit


Quebec
TP-653-V Deemed Disposition Under the 21-Year Rule
TP-668.1-V Taxable Capital Gains of a Trust that Give Entitlement to a Deduction
TP-776.47-V Alternative Minimum Tax (AMT) of a Trust

Important:

Government changes made to the form include the addition of carry forward information. In light of these new requirements, please verify all carry forward information, especially for alternative minimum tax.

Quebec TP-776.47 has been modified and may require certain entries to be made with the Adjust-Exp keyword within the Minimum-Tax group.

Modified keywords

Trust-Info group

A new option has been added to override the automatic tick of question 7 of the federal T3. The question states: Does the will, trust document, or court order require the payment of trust income earned in the current year to beneficiaries? If yes, complete Schedule 9.

Total-Inc-Ded group

DT Max now allows for the management fees to be applied first against the capital with the new option Mgmt fees relating to capital s.(20(1)(bb) that can be found in the Expenses keyword, after either the Other deductions included in CNIL or Other deductions excluded from CNIL options have been selected for the Total-Inc-Ded keyword.

New forms

T-Slip Summary

Federal

T2203 Provincial and Territorial Taxes for 2006 - Multiple Jurisdictions Worksheet

Quebec

TP-22 Income Tax Payable by an Individual Who Carries On a business in Canada, Outside Québec

TP-25 Income Tax Payable by an Individual Resident in Canada, Outside Québec, Who Carries On a business in Québec

TP-1012.B Carry-Back of a Deduction or Tax Credit

In order to populate this provincial carry back schedule that joins its pre-existing federal counterpart, a new subgroup keyword called TERMINAL-LOSS has been added under the Election group:

The TERMINAL-LOSS keyword is used to indicate the portion of losses claimed under section 1054 that is attributed to terminal losses. An amended income tax return may be required to be filed with the documents listed in section 1054R1 of the Regulation respecting the Taxation Act.

When the Subs. 164(6) election (capital losses) / s.1054 option is invoked, I allows the transfer by the legal representative of the trust of the estate losses to the final return of the deceased person. The elected amount will be entered on line 19 of federal schedule 1 and on Quebec form TP-1012.B and cannot exceed the amount of capital loss calculated for this return.

InvExpCB-Q
Use this keyword to enter the portion of investment expenses incurred to earn property income that is to be carried back.