  What's new for T1/T3 version 11.10? |
The latest DT Max program update is now available. It features the fully functional
T1/TP-1 program for tax years 1997 to 2007 and fully supports T1/TP-1 Efile
as well as the fully functional
T3/TP-646 program for tax years 2003 to 2008.
Please note that all program versions are always made available on the Internet.
In this version...
DT Max T1
DT Max T3
DT Max T1
About your DT Max licence key
If this release is your first installation for the new production year,
a valid licence key must be installed in order to have access to the latest
calculation modules for DT Max T1, that is to say for year 2007. If the registered
licence key is expired, the following warning message will be displayed on
the start up screen:
"DT Max will run in "demo" mode until a licence key is entered.
You will be able to enter data and review returns, but you will not be able
to file them with the government."
Program certification
Optimization of pension income splitting
This version of DT Max takes into account the recent rules regarding pension
income splitting. DT Max takes all the elements into account to determine
the amount of pension income to be transferred between spouses. First, the
program will attempt to balance the taxable income for both spouses and then
will assess the global consequences of the split.
To modify the amount of split income calculated by DT Max, use the keyword
Optimize by selecting the federal option "T1 - Pension income splitting"
and the Quebec option "TP1 - Schedule Q - Pension income splitting".
As per the choice made, the program will recalculate both spouses' returns
while abiding by the tax rules regarding pension income transfer.
A "Report on split-pension income" form has been developed to allow
the user to view the negative as well as the positive consequences from the
choice to transfer pension income between spouses, by comparing the results
before and after the transfer. See Optimization
of pension income splitting for more details.
Keyword data entry changes for natural caregiver credits
The SUPPORT-REL keyword has been removed for the Federal caregiver (line
315, Schedule 1). DT Max now automatically calculates this amount when a dependant
qualifies for the caregiver amount. You can change the transfer of amounts
made by DT Max by using the Transfer-OV keyword in relative's file.
New forms and slips and their corresponding keywords
New forms
Federal:
- Schedule 6 - Working income tax benefit (WITB)
- RC72 - Notice of the actual amount of the refund of tax
Keyword for this schedule:
In order to generate the RC72 form, you must use the keyword Progress with
the option "RC71 printed" along with the relevant information and
the keyword Progress with the option "Assessment notice received -
federal".
- T1032 - Joint election to split pension income
- T1163 and T1273: The Canadian Agricultural Income Stabilization (CAIS) program
has been replaced by the AgriStability and AgriInvest programs.
In 2007, a new suite of business risk management programs is now available.
These new programs replace the former Canadian Agricultural Income Stabilization
(CAIS) program and are designed to be more responsive, predictable and bankable.
The new suite includes AgriInvest, AgriStability, AgriInsurance and AgriRecovery.
With the implementation of the new AgriInvest program, important changes have
been made to the way producers report their income and expenses. To ensure
the program benefits are calculated correctly, please carefully review the
entries in the Income and Expense sections.
Reminder: Printing of AgriStability and AgriInvest forms
For the 2007 taxation year, the layout of AgriStability and AgriInvest forms
T1163 and T1273 has been changed in order to comply with CRA requirements.
These forms now follow a static instead of a dynamic format; if more space
is needed, the relevant page will be reprinted.
Quebec:
- Schedule J - Tax credit for home-support services for seniors
Keyword for this schedule:
Home-Support : are the eligible expenses associated with a rent or with
a condominium? (Schedule J)
- Schedule Q - Retirement income transferred to your spouse on December 31
- Schedule S - Amount transferred by a child 18 or over enrolled in post-secondary
studies
- Schedule T - Tuition or examination fees
- TP-726.30 - Income-averaging for forest producers
Keyword for this schedule:
Forest-Averag : deduction for income-averaging for forest producers [Que.
TP-726.30]
- TP-752.0.0.6 - Adjustment for income replacement indemnities received from
a public compensation plan outside Quebec
- TP-752.0.7.4 - Certification by an Individual Claiming an Amount for a Person
Living Alone
This form replaces the former Schedule J.
- TP-776.1.ND - Tax credit for a recent graduate working in remote resource
region
This form replaces the former Form TP-1029.8.ND.
- TP-965.55 - SME Growth Stock Plan
This form replaces the former Schedule D.
- TP-1029.MD.1 - Registration for advance payments - Tax credit for home-support
services for seniors
- TP-1029.MD.2 - Application for advance payments - Tax credit for home-support
services for seniors
Keyword for schedules TP-1029.MD.1 and TP-1029.MD.2:
Home-Support-Adv : Registration and application for home-support advance
payments
Manitoba:
- T1005 - Manitoba tuition fee income tax rebate
Keyword for this schedule:
TUITION-TAX-CR : information needed to produce form T1005.
British Columbia:
- T1014 - British Columbia training tax credit (individuals)
- T1014.1 - British Columbia training tax credit (employers)
Keyword for schedules T1014 and T1014.1:
TrainingTaxCr : British Columbia training tax credit for individuals (T1014)
and employers (T1014-1)
New slip
Removed forms
Federal:
- T79 - Alberta Royalty Tax Rebate (Individuals)
Quebec:
- TP-231 - Capital Gain Resulting from the Donation of Certain Property
- Schedule D - Deductions for strategic investments
- Schedule J - Certification by an individual claiming an amount for a person
Billing module reminder and changes
Please remember to change the GST, PST, and HST rate to 5% in the Tax information
tab of the billing module, and in the Identification numbers tab
of the Identification option of the Preferences menu.
New forms presented in previous sections have been added to the billing module
as well as certain improvements as followed:
Federal:
- Schedule 6 - Working income tax benefit
Quebec:
- Schedule J - Tax credit for home-support services for seniors
- Schedule Q - Retirement income transferred to your spouse
- Schedule S - Amount transferred by a child 18 or over enrolled in post-secondary
studies
- Schedule T - Tuition or examination fees
- TP-752.0.7.4 - Certification for purposes of the amount for a person living
alone
- TP-965.55 - SME growth stock plan
- TP-1029.MD.1 - Registration for advanced payments - Tax credit for home-support
services for seniors
- TP-1029.MD.2 - Application for advanced payments - Tax credit for home-support
services for seniors
Manitoba:
- T1005 - Manitoba tuition fee income tax rebate
British Columbia:
- T1014 - British Columbia training tax credit (individuals)
- T1014.1 - British Columbia training tax credit (employers)
Hourly charge rates
-Hourly charge (level 1)
-Hourly charge (level 2)
-Hourly charge (level 3)
-Hourly charge (level 4)
-Hourly charge (level 5)
Special situation
-Nil income filer
New validation of amounts
Since you are responsible for the tax returns that you generate, auditing
the results is an important task. DT Max already has an auditing system that
can be configured so that a client's tax-related data are audited before his
file undergoes the next processing step. You may request that the audit be
performed on the file before the return is generated (Data entry),
on-screen before the return is printed (Tax return) or at each of these
two steps.
In addition to the audit system, you can also audit the data entry, you can
individually mark each entered value as checked by choosing Mark keyword
as checked on your mouse's right-click menu or by pressing the "=" sign.
A small check will then appear on the right side of the amount that was audited.
Data entry is an important step in the preparation of tax returns. It is
therefore very important that the data be entered correctly. Validation and
auditing are two ways to verify the data entered in DT Max.
Validation is a DT Max control feature that ensures that the data entered
correspond to the expected amounts according to the data entry. From the version
11.10 onward, DT Max will validate the data that were entered with the following
keywords:
T4:
T3, T4PS, T5, T5013 and T5013A slips:
Federal:
Quebec:
If the difference between the entered amount and the expected amount exceeds
$1, a warning message will be generated in the data editor with the expected
amount and the entered amount.
Miscellaneous
T1 - Changes made regarding new citizenship question
In order to reflect the changes made on page 1 of the Federal return about
the new citizenship question, the options for the keyword Elections and
in the User Default, have been modified as followed:
Canadian citizen - Election Yes
Canadian citizen - Election No
Canadian citizen - Leave Election blank
Not a Canadian citizen
Working income tax benefits (WITB)
A new refundable tax credit for working income tax benefits (WITB) is available
to low-income individuals and families who have earned income from employment
or business. The WITB consists of a basic amount and a disability supplement.
New client letter variables
%228 F116 Elected split-pension amount [$]
%227 F210 Deduction for elected split-pension amount [$]
%229 F437 - Split pension income tax deducted (pensioner) [$]
%230 F437 - Split pension income tax deducted (pension transferee) [$]
%231 Q123 Pension income transferred by your spouse [$]
%232 Q250 Deduction for pension income transferred by your spouse [$]
%233 Q451.1 Income tax transferred to your spouse [$]
%234 Q451.3 Income tax transferred by your spouse [$]
Quebec installments
In the calculation of the payable tax amount, from this year forward tax
preparers must no longer take into account the included or deducted amount
in the calculation of the income, the retirement income transferred between
spouses (line 123 or 250 of the return) depending on the case, or the transfer
of tax deductions at source on the retirement income (line 451.1 or 451.3
of the return). In the cases of pension income splitting, DT Max uses the
amount on line 432 of the Quebec return, the "No split" column of
the Report on split-pension income as payable tax amount.
Message from Revenu Quebec
Some tax preparers regularly use a "fake" date of birth such as
01-01 (MM-DD). The use of such "fake" dates of birth has some major
harmful effects regarding the processing of tax returns by Revenu Quebec and
we wish to make as many tax preparers as possible aware of the importance
of providing accurate information when filing tax returns.
The impacts of entering an incorrect date of birth:
An incorrect date of birth prevents the taxpayer from accessing Revenu Quebec's
electronic services such as:
- The Refund Info-line
- The Access Code Info-line
- Requesting an access code, and
- Changing your address.
Moreover, it delays the processing of your tax return and can cause errors
in the following sections:
1. Calculation of QPP contributions
2. Eligibility to QST credit
3. Calculation of the premium payable under the Quebec Prescription Drug Insurance
Plan
4. Old-age pension
5. Determining the age amount
The impacts of entering an incorrect date of status change
The absence of a date of status change is the most frequent error on NETFILE.
It is generated when the present status found in Revenu Quebec's files differs
from the one entered on the tax return and that no date of status change has
been entered in field 13 of the return. More than 20% of the dates of status
change entered on the return by taxpayers and preparers correspond to 01-01.
The date of status change is used notably by the Régie des rentes du Québec.
An incorrect date of status change can alter the results when determining
the Child Assistance Payment. In addition, at the Ministère de l'Éducation,
Loisirs et Sports, an incorrect date of status change can create errors in
the assessment of student loans and bursaries.
New keywords
1. Meal and beverage expenses
Under the recent changes brought, the 50% limitation on the deductibility
of meal and beverage expenses has changed in some circumstances for long-haul
truck drivers for meal expenses incurred after March 18, 2007. Long-haul truck
drivers are now able to deduct 60% of meal expenses consumed during eligible
travel periods.
In the Employment-Exp group:
Home-Empl-Income : employment income (including commissions and similar
amounts, where applicable)
TL2 options:
New options added for keywords Repayments.tl2 and REPAYMENTS :
Received for meals (Long-haul truck bef. March 19)
Received for lodging (Long-haul truck bef. March 19)
Received for meals (Long-haul truck after March 18)
Received for lodging (Long-haul truck after March 18)
Reminder: Integration of meals & lodging to the employment expense group
The data entry of meals and lodging (TL2/TP-66) has been streamlined and
reorganized in the planner version 10.30. These expenses are now part of the
employment expense group, thus allowing the claim of the GST/HST and QST rebates.
Furthermore, the calculation of meal costs has been improved for the simplified
and batching methods. When the simplified method is selected, DT Max will
now make calculations based on a per meal allowance of $17, no longer requiring
the input of the dollar value of meals taken. When the batching method is
selected, DT Max now caps meal expenses to $34 per day.
2. RelatedParty group:
Prison.r : related party in prison on December 31
UCCB-Repaid.r : universal child care benefit repayment [Fed. L.213]
Prov-Tr-Children : Schedule SK(S2) - amount transferred from spouse not
processed for dependant children (line 5901)
3. Indian Status:
Indian-Certif : certificate of Indian status card number for tax exemption
for Indians
Indians must fulfill certain conditions in order to acquire property and services
without paying GST and QST. They must, among other things, show their certificate
of Indian status to vendors as proof of their registration under the Indian
Act.
4. Non-Resident Group:
Country-31dec : Country of residence at December 31
The name of the country entered by this keyword is written onto page 1 of
the T1 jacket for non-resident to declare the living country as of December
31.
5. Hourly rate:
Bill-Hours : number of hours and level rate of client's invoice to be generated
6. Discount Group:
7. SEND:
SEND-DATE : SEND date
SEND-ERROR-CODE : SEND error code
8. Progress Group:
Those options have been added:
RC71 printed
Consent and request form (T1153)
Authorization form - federal (T1013)
Authorization form - Quebec (MR-69)
For the "Tax preparation fee paid" option:
For the "RC71 printed" option:
Discounter-Code : discounter code as shown in box 2 of Form RC71 [RC72
box 3]
Discounter-Name : discounter's name as shown in box 1 of Form RC71 [RC72
box 6]
Discounter-Add1 : first line - discounter's permanent mailing address
as shown in box 3 of Form RC71 [RC72 box 7]
Discounter-Add2 : second line - discounter's permanent mailing address
as shown in box 3 of Form RC71 [RC72 box 7]
Estimated-Refund : the estimated refund as shown in box A of Form RC71
(line 6505) [RC72 box B]
Actual-Refund : the actual refund (line 482 of federal income tax return)
Location.pr : the name of the municipality where the representative signed
this form [RC72 box 11]
The Progress "RC71 printed" information is completed automatically
by DT Max when the RC71 is printed.
For the "Assessment notice received - Quebec" and the "Assessment
notice received - federal" options:
For the "Archived" option:
File-Name : name of the archived file of the tax return
File-Password : file password of the archived file of the tax return
9. Tax credit - tips
TaxCrTipsInc : tax credit for the reporting of tips received in the current
year [Fed. L.104] <Q [Que. L.107] />
Use the keyword TaxCrTipsInc to enter the amount of the tax credit for
the reporting of tips received in the current year. This only needs to be
entered in the first year that your client is added to the DT Max database
as the program will carry this amount forward from the previous year's claim
(see Oth-CreditQ ). This amount is reported as "other employment income"
on line 104 of the federal and line 107 of the Quebec income tax returns.
10. RC62 - New Box 12
Universal-Repaid : universal Child Care Benefit repayment [Fed. L.213]
<Q [Que. L.297] /> (RC62 box 12)
11. T4A, T4RSP, T4RIF
Tax-Transf-Que. : tax transfer for residents of Quebec [Fed. L.438] [Que.
L.454]
12. Relevé 5/T5007 slips
CSST-QUEBEC : CSST [Que. L.148] (RL-5 box C)
In most cases, the CSST issues a T5007 slip and a Relevé 5 where the amounts
in box 10 of the T5007 and box C of the Relevé 5 are identical. However, differences
in the implementation of federal and provincial laws as for the processing
of the taxable CSST income for a given year will result in some beneficiaries
not receiving a T5007 but only a Relevé 5, or receiving a T5007 but no Relevé
5, or receiving both slips where the amounts in box 10 of the T5007 and box
C of the Relevé 5 are not identical.
In order to better reflect this situation and avoid errors, the CSST amount
of Relevé 5 is entered separately from the CSST amount of the T5007 slip.
13. T5007
Gross-Income.rl5 : gross annual income used to determine your income replacement
indemnities (Q358 L.1 or TP-752.0.0.6 L.12)
ReplacementRate : income replacement rate (Q358 Line 5 or TP-752.0.0.6
Line 1)
Reduction : Have the indemnities been reduced?
GrossIncomeRed : annual gross income of employment used to reduce the replacement
indemnities (Q358, TP-752.0.0.6, L.1)
Reduction-Amount : annual amount used to reduce the replacement indemnities
(TP-752.0.0.6, L.9).
Reduction-Rate : reduction rate that apply to an income (TP-752.0.0.6,
L.4)
Determined-Rate : determined reduction rate for income replacement indemnities
(TP-752.0.0.6, L.19 and 30)
14. Business
A new business expense has been added:
Meals expenses (truck drivers after March 18, 2007); 60% of the amount entered
will be deductible.
New options in CCA-Class :
Class 1 - 6% (after March 18, 2007)
Class 1 - 8% (after March 18, 2007)
Class 1 - 10% (after March 18, 2007)
Class 45 - 55% (after March 18, 2007)
For the "T2121 - Fishing" option:
Other-Income.f : amount and description of other income related to the
fishing business
15. Tuition-Edu group:
Transfer-SchT : mandatory information to transfer tuitions and exams fees
Transfer-SchS : mandatory information to transfer the post-secondary studies
amount
Tuition-Dep-Que : tuition fees transferred from a child [Que. L.387] (Line
66 of child's schedule T)
Hist-School : last year - the person attended a full time post-secondary
institution
Starting in 2007, the amount of the scholarship or fellowship will be totally
exempted if the person could apply for the credit for studies in the previous
or following year regarding studies eligible for a scholarship
16. ITC group:
ITC has a new option "Code 7 (at 25%)", a child care spaces tax
credit for employers that create licenced child care spaces for the children
of their employees. The credit will be equal to 25% of eligible expenditures
incurred after March 18, 2007, to a maximum of $10,000 per child care space
created.
ChildCareSpaces : total number of child care spaces created
17. PIGMANURE group:
HISTPIGMANURE : year and amount of the credit claimed for the establishment
on line 462.
18. ProvCredit group:
Newfoundland-and-Labrador:
RPITC : investment tax credit for resort property
Manitoba:
ODOUR-TAX-HIST : net property tax paid in Manitoba and the related year.
Odour-Control-CF : unused portion of the Manitoba amount of odour-control
tax credit (Form T4164)
GreenEnergy : green energy equipment tax credit (Line 6138 & 6139, MB479)
Nova Scotia :
GRADUATECR-CF : unused Nova Scotia post-secondary graduate tax credit from
prior year (NS 428) Firefighters-Cr : volunteers firefighters eligible
to the tax credit
Saskatchewan:
ONE-TIMECR-CF : unused portion of Saskatchewan one-time trade entry credit
[T1284]
British Columbia :
TrainingTaxCr : British Columbia training tax credit for individuals (T1014)
and employers (T1014-1)
19. New keyword group:
File-History : historical information and relevant year
The keyword File-History is used by DT Max to complete the previous years
on the T1 and TP1 Summary.
New options:
20. New option added for keyword Prison :
Taxpayer in prison (for 90 days but 6 months or less)
21. Drug-Insur group (Quebec Schedule K):
Two new codes have been added in the "exceptions" options, for secondary
keyword Situation :
[code 29] Age + 64, spouse age + 59 and L.148 > 4,662$
[code 31] Age + 64, if spouse age - 59 and L.148 > 7,060$
22. New options added for keyword Optimize :
T1 - Amount for children age 17 or younger
T1 - Split pension income
T1 - Working income tax benefit
N.S. - Unclaimed graduate tax exemption
TP1 - Schedule Q - Split pension income
23. Transfer-OV :
If you want to override the dependant's automatic transfer of amount to supporter,
those new options have been added for the keyword Transfer-OV :
T1 - Eligible for children age 17 or younger amount
T1 - Sport and recreational expenses
T1 - Caregiver amount
T1 - Sch. 6 - Claim as designate child
List of forms in preliminary version
Federal:
T2038 - Investment tax credit (individuals)
T2203 - Provincial and territorial taxes for 2007 - Multiple jurisdictions
DT Max T3
About your DT Max licence key
If this release is your first installation for the new production year,
a valid licence key must be installed in order to have access to the latest
calculation modules for DT Max T3, that is to say for year 2007. If the registered
licence key is expired, the following warning message will be displayed on
the start up screen:
"DT Max will run in "demo" mode until a licence key is entered.
You will be able to enter data and review returns, but you will
not be able to file them with the government."
Program certification
DT Max is certified for paper filing under the following authorization numbers:
Federal schedules: CRA-07-501
Quebec schedules: RQFS-0701
Federal slips: RC-07-119
Quebec slips: FS-07-16-001
Reminder: Carry forward information
Please verify all carry forward information, especially that for Ontario
alternative minimum tax.
2008 tax rates for T3
All federal and provincial tax rates have been updated in DT Max T3 for 2008.
Please refer to the DT Max Knowledge Base for additional details on the new
tax rates.
New forms and slips and their corresponding keywords
T1163 and T1273:
The Canadian Agricultural Income Stabilization (CAIS) program has been
replaced by the AgriStability and AgriInvest programs.
In 2007, a new suite of business risk management programs is now available.
These new programs replace the former Canadian Agricultural Income Stabilization
(CAIS) program and are designed to be more responsive, predictable and bankable.
The new suite includes AgriInvest, AgriStability, AgriInsurance and AgriRecovery.
With the implementation of the new AgriInvest program, important changes
have been made to the way producers report their income and expenses. To
ensure the program benefits are calculated correctly, please carefully review
the entries in the Income and Expense sections.
Reminder: Printing of AgriStability and AgriInvest forms
For the 2007 taxation year, the layout of AgriStability and AgriInvest
forms T1163 and T1273 has been changed in order to comply with CRA requirements.
These forms now follow a static instead of a dynamic format; if more space
is needed, the relevant page will be reprinted.
- T3MJ - Multiple jurisdictions
This form replaces the T2203 Worksheet
- T184 - Capital Gains Refund to a Mutual Fund Trust
Keyword group header for this form:
CapGainRefundCr
Use the keyword CapGainRefundCr in order to claim a capital gains refund
on form T184 for a mutual fund trust.
This refund is available only to a mutual fund trust that has refundable
capital gains tax on hand at the end of the year.
- T1079 - Designation of a Principal Residence
Keywords for this schedule:
a) Specified-Ben : whether beneficiary inhabits the principal residence
Use the keyword Specified-Ben to indicate whether the beneficiary is
someone who is both beneficially interested in the trust and who ordinarily
inhabits the housing unit. This keyword can be found in the Beneficiary
group.
A personal trust may qualify for the use of the principal residence exemption
if the trustees identify at least one specified beneficiary who ordinarily
inhabits the property.
b) PrincipalRes.cg : Use this keyword to designate a property as the
principal residence. This keyword has been added to the CapitalProp group
- T1079WS - Principal Residence Worksheet
- TP- 274.A - Designation of Property as a Principal Residence of a Personal
Trust (Quebec)
- TP- 274.S - Reduction of the Capital Gain deemed to have been realized
on a Principal Residence (Quebec)
- T1134-A - Information Return Relating to Foreign Affiliates That Are Not
Controlled Foreign Affiliates
- T1134-B - Information Return Relating to Controlled Foreign Affiliates
Keyword group for the T1134-A and T1134-B forms:
Foreign-Info : type of information return with respect to foreign property
Use the keyword Foreign-Info to indicate which information return with
respect to foreign property you wish to complete.
- Assembly Instructions (of federal and Quebec tax returns)
- Client letter
Keywords for this schedule:
a) ClientLetter : name of the file containing the client letter template
To use a customized client letter for this client, enter the keyword ClientLetter
and the name of the file containing the client letter. If it is not in the
same subdirectory as DT Max, enter the full path as well as the name.
The knowledge base explains how to customize the client letter. The keyword
help [Ctrl+F8] for Letter-Data has a current list of %-variables, which
can be used in the client letter.
b) Letter-Data : amount or text to use in the client letter and variable
code (%)
Use the keyword Letter-Data to override the value of any variable that
is printed on the client letter. This keyword can also be used to enter
the text for the custom variables %201 to %210 which are put aside for your
own use. You can use these custom variables to represent whatever information
you want to communicate in your client letter.
Enter the keyword Letter-Data and select the variable code in the tree
structure that you want to modify and the text that you wish to print for
this variable. If you select a numeric value for Letter-Data , this value
can be used in a %IF statement in the client letter. If you enter the same
text frequently, you may wish to set up a text macro to enter such a text
for Letter-Data .
(See New Client letter variables for detailed lists of new variables.)
- Federal Instalments Workchart
- Quebec Instalments Workchart
Keyword group for Federal and Quebec Instalments Workcharts:
InstalMethod : preferred method for instalment payments
- Customized schedule
Keyword for this schedule:
Custom-Sched : Use this keyword in order to create a supporting schedule
for a calculation, to keep in your own files, to send to your client or
to submit to the government.
Billing module reminder and changes
Please remember to change the GST, PST, and HST rate to 5% in the Tax information
tab of the billing module, and in the Identification numbers tab of the Identification
option of the Preferences menu.
New forms presented in previous sections have been added to the billing module
as well as certain improvements as followed:
- Hourly rate 1
- Hourly rate 2
- Hourly rate 3
- Hourly rate 4
- Hourly rate 5
Non-resident and deemed trusts
Starting this year, DT Max will automatically calculate amounts for non-resident
and deemed resident trusts.
New keywords
Beneficiary group:
1) Beneficiary-Code : type of beneficiary
Use the keyword Beneficiary-Code to identify the type of beneficiary.
2) Amt-Designated : override of type and designated amount per S104
Use the keyword Amt-Designated to override the automatic calculation of
the designated amount to be allocated to the beneficiary.
InstalMethod group:
InstalMethod : preferred method for instalment payments
There are currently three methods available to determine the instalments
of a trust:
1. Government method
2. Prior year option
3. Current year option (estimated)
1. Government method (No calculation method):
This option is best if the income, deductions, and credits remain about the
same from year to year. The instalment payments will be calculated as follows:
The instalments for March 15 and June 15, 2008, will each equal one-quarter
of the 2006 net tax owing. For the September 15 and December 15, 2008,
instalments, the total amount of the March and June 2008 instalments is
subtracted from the 2007 net tax owing. The remaining amount is then divided
equally for the
September 15 and December 15, 2008, instalments.
Provided the payments indicated on the form are made by the due dates, no
interest will
be charged, even if the amount of the payments subsequently proves to be insufficient.
2. Prior year option:
This option is best if the 2008 total instalment amount due is similar
to the 2007 amount but much more or less than it was in 2006. The amount
of the instalments will be calculated as follows:
Each instalment payment will be one-quarter of the 2007 net tax owing.
3. Current year option (estimated):
This option is best if you expect the total instalment amount due for 2008
to
be more or less than it was for 2006 and 2007.
These options allow you to choose the method to be used for determining instalments
based on your preference. This feature is available in the user's defaults.
To change the instalment method indicated in the user's defaults for a particular
client, use the keyword InstalMethod in that client's file. This will override
the user's defaults and determine the instalment method based on the InstalMethod
entry now appearing in the file.
Whether or not a taxpayer is subject to instalments depends on the threshold
of net tax owing.
THRESHOLD = Net-Tax-Owed
If the threshold is greater than $3,000 ($1,800 in Quebec), the inter-vivos
trust is subject to instalments.
IMPORTANT : If you calculate the instalment payments yourself and they turn
out to be too low, the taxpayer may have to pay interest.
CapitalProp group:
PrincipalRes.cg : designation of the property as a principal residence
[T1079] [TP-274]
Use the keyword PrincipalRes.cg to designate the property as a principal
residence and to complete form T1079 titled "Designation of a property
as a principal residence by a personal trust".
A principal residence can be any of the following types of housing units:
- a house;
- a cottage;
- a condominium;
- an apartment in an apartment building;
- an apartment in a duplex; or
- a trailer, mobile home, or houseboat.
When the housing unit is sold or is considered to have been sold, the sale does
not normally have to be reported on the tax return and no tax has to be paid
on any gain from the sale. This is the case if the housing unit was the principal
residence for every year owned.
If the housing unit was not the principal residence for all the years that
the taxpayer owned it, the capital gain, or part of the capital gain on the
property that relates to the years for which the property was not designated
as the principal residence must be reported.
Note (i): Because the housing unit is considered personal-use property, the
loss cannot be claimed.
Note (ii): For years after 1981, only one housing unit per family can be
designated as a principal residence.
IncomeSource group:
Artist-Annuity : annuity payment of an artist in Quebec (RL-2 box C)
Use the keyword Artist-Annuity in the case of a testamentary trust that
has received an artist annuity. This amount will be entered only on line 61
of the Quebec tax return.
Trust-Hist group:
Trust-Hist : tax year for which to enter historical information
Historical information for previous tax years should be entered by the user
for each new client. DT Max will generate the information of the current year
and carry it forward. This information is useful for comparative purposes
and is especially required for a tax client subject to, or potentially subject
to, instalments.
New Client letter variables
As per the new Client letter implemented in this DT Max version, the following
variables have been determined:
Client identification
%1 Trustee
%2 First-Name.tr
%3 Business-Name.tr
%60 Care-of
%4 Street
%61 Suite
%5 City
%6 Province (address)
%7 Postal-Code
%8 Date (last calculated)
%9 Taxation year
%11 Country
%12 Trust-Name
%14 Inter Vivos trust
%15 Testamentary trust
%56 Filing date
Federal return
%77 Federal return generated [0=Yes, 1=No]
%50 Federal balance owing [$]
%51 Federal refund [$]
Federal forms
%17 T3A - Request for loss carryback by a trust [0=No, 1=Yes]
%18 T3-ADJ - T3 adjustment request [0=No, 1=Yes]
%19 T3M - Environemental trust income tax return [0=No, 1=Yes]
%20 T3P - Employees' pension plan income tax return [0=No, 1=Yes]
%21 T1013 - Authorizing or cancelling a representative [0=No, 1=Yes]
%22 T1079 - Designation as a principal residence [0=No, 1=Yes]
%65 T1134-A - Return relating to not controlled foreign affiliates
%66 T1134-B - Return relating to controlled foreign affiliates
%23 T1135 - Foreign income statement [0=No, 1=Yes]
%24 T1139 - Reconciliation of business income [0=No, 1=Yes]
%25 T1141 - Transfers or loans to non resident trust [0=No, 1=Yes]
%26 T1142 - Distr./indebtedness - non resident trust [0=No, 1=Yes]
%27 T1172 - Tax from RESPs [0=No, 1=Yes]
%28 T2038 - Investment tax credit [0=No, 1=Yes]
%29 T2223 - Election to defer payment of income tax [0=No, 1=Yes]
%30 TX-19 - Asking for a clearance certificate [0=No, 1=Yes]
%31 T3 Summary - Summary of trust income allocation [0=No, 1=Yes]
%32 NR4 Summary - Amounts paid to non residents [0=No, 1=Yes]
Quebec return
%78 Quebec return generated [0=Yes, 1=No]
%52 Quebec balance owing [$]
%53 Quebec refund [$]
Quebec forms
%34 TP-1129.53 - Inc. tax return for environmental trusts [0=No, 1=Yes]
%35 MR-69 - Authorization form [0=No, 1=Yes]
%36 TP-80.1 - Income adjusted to December 31 [0=No, 1=Yes]
%37 TP-274.A - Designation as a principal residence [0=No, 1=Yes]
%38 TP-453 - Election on the deduction of a reserve [0=No, 1=Yes]
%39 TP-671.9 - Beneficiary of a designated trust [0=No, 1=Yes]
%40 TP-1012.B - Carryback ded./credit [0=No, 1=Yes]
%41 TP-1086.R.23.12 - Labour costs [0=No, 1=Yes]
%42 TP-1129.64 - Special tax relating to RESP [0=No, 1=Yes]
%43 MR-14.A - Notice before distribution [0=No, 1=Yes]
%44 MR-14.B - Notice before distribution [0=No, 1=Yes]
Accountant variables
%246 Account contact title
%247 Account contact name
%248 Accountant fax number
%249 Accountant phone number
%250 Accountant postal code
%251 Accountant province (address)
%252 Accountant city
%253 Accountant street
%254 Accountant name
%255 Use default letterhead [1=Yes, 2=No]
%55 Amount of client invoice
February 5, 2008
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