The latest DT Max program update is now available for downloading. It features the fully functional T1/TP-1 program for tax years 2000 to 2010 and fully supports T1/TP-1 Efile. Installing this version will update your version of DT Max to 14.14. Please note that all program versions are always made available on the Internet. In this version...
2) Introduction of the Quebec Solidarity Tax Credit Optimization: QST vs Housing 3) Functional forms for the federal and Quebec Disability Tax Credit 4) New options for the T4A/RL-1/RL-2 slips:
b) T4A Box 048 "Fees for services": new option added 6) Changes brought by the Canada Revenue Agency to instructions for line 6 of Form RC310 7) Net capital loss schedule in year of death now functional 8) Updated options for AgriStability and AgriInvest 1) T1013 e-submissionDT Max version 14.14 includes a new feature which will allow you to transmit the T1013 to the Canada Revenue Agency. This feature, named T1013 e-submission, can be found within the Efile menu on the DT Max menu bar. It will allow you to transmit a client's T1013 in real time with the results shown in the Efile Transmission Log and written into the client's file. Click here for additional information. 2) Introduction of the Quebec Solidarity Tax Credit Optimization: QST vs HousingAccording to information that we received from Revenu Québec, shortly after the release of version 14.10 of our program, taxpayers not entitled to the credit related to individuals living in a northern village could opt out of the Housing component of the Solidarity Tax Credit to maximize the QST component of their credit. This could be done for either one or both periods for which they are entitled to receive the Solidarity Tax Credit. An advantageous situation can arise because the reduction rate decreases to 3% of the net family income (NFI) instead of 6% when claiming only the QST component instead of the QST component with the Housing portion (see example below). Please note that, as per the example below, it would be more beneficial to forego the Housing component for the first period in favour of the QST component only to gain approximately $16.00 in credit. We have implemented a calculation to perform this optimization automatically. Furthermore, a diagnostic message will appear to notify you that our estimated calculation will take this into consideration. Please also note that this should not affect the way you complete Schedule D, because ultimately Revenu Québec will provide the client with the best case scenario.
3) Functional forms for the federal and Quebec Disability Tax Credit
Pursuant to client feedback, we have added the keyword DisabCertificate with the following options: This keyword should be used only in the disabled client's file in order to successfully populate the section required to identify the disabled person only. In accordance with instructions provided on the federal and Quebec disability certificates and in compliance with the CRA and Revenu Québec's guidelines, the remainder of these forms should be completed by a qualified health practitioner. 4) New option for the T4A/RL-1/RL-2 slips:
a) Compensation Received by a Quebec Resident Volunteering for Clinical Trials In accordance with the 2010 Quebec budget measures, we have added the option "F130 Indemnity for particip. in clinical trials <Q [RZ]/>". This option will have the effect of exempting the first $1,500 of compensation received with respect to a volunteer participating in a clinical trial for Quebec tax purposes only. The option is available through the keyword T-Slip with the option "T4A / RL-1, 2".
b) T4A Box 048 "Fees for services": new option added For 2010, the Canada Revenue Agency (CRA) has added Box 048, "Fees for services", to the T4A slip. Unlike most of the other boxes that appear on this slip, the income appearing on Box 048 of the T4A slip has no specific T1 income tax return line number attributable to it. Pursuant to feedback we have received from the CRA, the nature of the services rendered will determine where on the T1 personal income tax return the amount in Box 048 should appear. In short, it is equally plausible to consider any amount in Box 048 as either employment income, other income reportable on line 130 of the T1 income tax return, or even business income all depending on the nature of the services rendered by the individual. For your convenience, we have added the option "[048] Other Income (specify) <Q [RZ]/>" for the T4A slip to allow you to transpose this amount on line 130 of the T1 income tax return. However, given the above, we suggest that tax practitioners carefully interview their clients to determine the nature of the services rendered, and then either enter the amount on the appropriate line number of the return by either using the new option mentioned above, or the existing keywords if the amount is determined to be employment income or income from self-employment. 5) Revenu Québec changes to forms relating to the Tax Credit for Home-Support Services for SeniorsPlease note that the forms relating to the advance payments for home-support services for seniors are currently under review and in preliminary format. Revenu Québec has brought some format changes to the forms relating to the Tax Credit for Home Support Services for Seniors. In particular, the following forms have been affected: a) TPZ-1029.MD.7-V - Application for Advance Payments Based on Rent and Services Included in Rent - Tax Credit for Home-Support Services for Seniors b) TPZ-1029.MD.8-V - Application for Advance Payments for Services Included in Condominium Fees c) TPZ-1029.MD.9-V - Application for Advance Payments for Occasional Services 6) Changes brought by the Canada Revenue Agency to instructions for line 6 of Form RC310The CRA has recently changed the instructions of line 6 of Form RC310 requiring the revised amount resulting from a 2010 disposition to be reported on line 199 of Schedule 3 instead of line 127 of the federal income tax return. The appropriate modification was taken into account with this version release. Although we expect minimal impact on tax calculations relating to this change, we suggest that a thorough review be done for clients for whom you completed Form RC310, who may be eligible for the capital gains deduction or are subject to alternative minimum tax. Also, keep in mind that this change may affect the taxpayer's cumulative net investment loss (CNIL). 7) Net capital loss schedule in year of death now functionalAs mentioned in our previous "What's new", and in accordance with the CRA's rules discussed in chapter 5 "Net Capital Losses" of Guide T4011, "Preparing Returns for Deceased Persons", we have adjusted DT Max's calculation module so that a capital loss claimed at line 127 against other income in the year of death will not be used in the calculation of net income for the purposes of calculating other amounts such as social benefit repayments, provincial or territorial tax credits, and those non-refundable tax credits requiring the use of net income. This enhancement now provides DT Max tax practitioners with a powerful tool enabling capital loss optimization in the year of death. 8) Updated options for AgriStability and AgriInvestWe have updated Forms T1163 and T1273 and the corresponding options relating to their keyword entries to reflect the descriptions mentioned in the CRA Guide RC4060(E) "Farming Income and the AgriStability and AgriInvest Programs Guide."
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