This version of DT Max uses a new database system. Because of this, any databases that you currently have must be converted to the new system before they can be used. This change will allow us to make improvements to the client list (a few now, and more to come in the future). To ensure the conversion proceeds without interruption, we recommend that all users exit any database about to be converted.

NOTE: After conversion, only computers running v16.30 or later of DT Max will be able to access these databases. If you foresee the need to access these databases with older versions of DT Max, it is recommended that you backup (or a make a copy of) these databases, and that you never convert them. Please be aware that it will be possible to move clients between the two different database types using the Extract and Merge features. Furthermore, after conversion of a database, you will still be able to access prior tax years (but you must do so using v16.30 or later).

This version of DT Max allows certain columns (marked by the symbol "-") to be sorted by clicking on the column heading. Future versions of DT Max will make additional columns sortable. If the client list has been sorted by a particular column, the "-" symbol will be replaced by a small triangle. Because the "Client #" and "Name" columns can now be sorted by clicking on the column heading, the "Type of list" field has been removed from the toolbar, as both the "Numeric" and "Individual" lists can now be generated by clicking the appropriate column heading. For sorting the client list by families, a new "Family" button has been added to the toolbar, just to the right of the Filter. The print and EFILE queues have been moved from the "Type of list" field to the Filter. You will also notice that the search feature has been added to the toolbar. It is now more intuitive for new users. However, for veteran users, the original pop-up search window is still available. Rest assured that everything that was possible with the old client list is still possible with the new client list, and it also makes future improvements possible.

a) Implementation of announced tax changes

At the time of writing, the majority of the above-mentioned budget speeches were tabled in their respective legislatures.

The 2013 DT Max tax planner takes into consideration the basic tax changes announced in each budget, allowing you for more effective planning opportunities, as well as the ability to perform cost projection calculations.

Please refer to these topics from our Knowledge Base for a detailed review of the tax changes implemented:

• Non refundable tax credits (2013)
• Tax brackets and rates (2013)
• Tax changes in DT Max (2013)

b) 2013 Planner Standard Caveat

a) Deceased or bankrupt taxpayers

b) Printing prescribed forms for 2013 returns

c) Automatic calculation of Old Age Security pension

a) Mandatory inventory adjustment

b) Emigrant electing under section 217 of the Income Tax Act

c) Items reported on information slips T4 and T4A that must be reported as business income

Error prevention report

T4A(OAS), Statement of Old Age Security

The client is 65 or older and no amount of Old Age Security (OAS) pension from a T4A(OAS) has been entered.

In-house forms:

• Electing Under Section 217 of the Income Tax Act by an emigrant or an immigrant

  This new in-house form provides you with the calculations associated with the election under section 217 of the Income Tax Act for an emigrant (or an immigrant). It follows all the special rules that apply under such circumstances. These special rules are described in Guide T4056, “Emigrants and Income Tax”.

• Schedule 5 – Ineligible Dependants Amounts (dependant’s net income too high)

  This new in-house form for the federal was designed to display the calculations pertaining to situations where an amount for a dependant (e.g. the caregiver amount) is NOT claimed because the dependant’s net income is too high.

• Schedule A – Ineligible Dependants Amount (dependant’s net income too high)

  This new in-house form for Quebec was designed to display the calculations pertaining to situations where an amount for a dependant (e.g. amount for other dependants) is NOT claimed because the dependant’s net income is too high.

1. In the Non-Resident keyword group, when the option "Emigrant" or “Immigrant” is used:

   Election-217 : Electing to file a return under section 217?

   Use the keyword Election-217 to indicate that you are producing a return for an emigrant or an immigrant who wishes to benefit from the election under section 217 of the Income Tax Act on certain of his Canadian source income after emigration/immigration. The keyword will generate an in-house form called Electing under section 217 of the Income Tax Act by an emigrant or an immigrant. That form follows all the special rules that apply in such circumstances.

2. Legal-Fees-Alim : Legal fees relating to support payments [Fed. L.221] [Qué. L.250]

   Use Legal-Fees-Alim to enter legal fees paid relating to support payments that the current or former spouse or common-law partner, or the natural parent of the child, will have to pay to the taxpayer. The amount entered here will be reported on line 221 of the federal income tax return and on line 250 of the Quebec income tax return. Legal fees that were paid to try to make child support payments non-taxable must be deducted on line 232 with the keyword Legal-Fees .

3. In the Business keyword group, when the option "T2042 - Farming (cash-basis)" is selected :

   1. MIA-Purchased : Mandatory inventory adjustment - Line 9942

      Use the keyword MIA-Purchased to enter all the information associated to the calculation of the mandatory inventory adjustment (MIA), if applicable. Based on the information entered, DT Max will calculate the MIA, if any. The keyword MIA-Purchased will generate the appropriate keywords needed to enter the information required for the calculation of the MIA.

   2. Amount-Paid-Cur : Amount paid to buy the inventory

      Use Amount-Paid-Cur to enter the amount paid to buy the inventory.

   3. FMV-Inventory : Fair market value of purchased inventory

      Use FMV-Inventory to enter the fair market value (FMV) of purchased inventory. This entry is only required if the FMV of purchased inventory is different from the amount paid to buy the inventory. In other words, if you do not specify a FMV for the purchased inventory, DT Max will assume that the FMV is the same as the amount paid to buy the inventory.

   4. Cur-Fixed-Value : Chosen value of purchased inventory for specified animals

      Use Cur-Fixed-Value for specified animals to set the value of purchased inventory.

   5. Amount-PaidPrior : Amount paid for the specified animals at the end of the fiscal period

      Use Amount-PaidPrior to enter the amount paid for the specified animals at the end of the fiscal period.

   6. Prior-FixedValue : Chosen value of the specified animals at the end of the 2012 fiscal period

      Use Prior-FixedValue to enter the chosen value of the specified animals at the end of the 2012 fiscal period.

4. Prior-CPP-Elect : Date of prior election to stop contributing to the CPP

   Use Prior-CPP-Elect to indicate that the individual elected in a prior year to stop contributing to the CPP. This information is relevant and should be entered so that DT Max does not calculate CPP contributions. Considering that this information should be on file, DT Max will carry forward this information.

1. The following options have been added to the drop-down menu of the keyword Other-Income :

   [105] F130 Artists’ project grants

   Use this option to enter the amount reported in box 105 of the T4A slip when it corresponds to artists’ project grants. DT Max will calculate the exemption.

   Expenses associated with the artists’ project grants

   Use this option to enter the expenses associated with the grant. DT Max will use this amount to calculate the exemption.

2. The following option has been added to the drop-down menu of the keyword CCA-Class :

   Timber limits and cutting rights

   Use this option to enter a deduction in respect of the capital cost of timber limit or a right to cut timber from a limit other than a resource property. The allowance (CCA) is generally established on the basis of quantity of timber cut in the year to 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.

3. The following option has been added to the drop-down menu of the keyword CPP-QPP-Inc :

   CPP/QPP post-retirement benefit [19]

   Use this option to enter Post-Retirement Benefit. This income is reported in box 19 of the T4A(P) slip.

Enhancements have been brought to the program regarding the management of a copyright that may entitle the taxpayer to the deduction for copyright income under section 726.26 of the Taxation Act. Now, when you enter box H-2 of the RL-3 slip, if the copyright income entitles the taxpayer to the deduction, you should use the option "Royalties from own work or invention (elig. for deduction)" under the keyword Royalties . DT Max will then automatically calculate the deduction associated to copyright income using Work chart 297. On the other hand, if the copyright income does not make the taxpayer eligible for the deduction, simply use the option "Royalties from own work or invention" under the keyword Royalties (and DT Max will NOT automatically calculate the deduction associated to copyright income).

Starting July 1, 2013, the Manitoba general sales tax rate will increase from 7% to 8%. In this regard, don’t forget to reflect this change that will come into force by updating the rate in your preferences with the new rate that will be applicable in order for DT Max to properly calculate Form RC71, “Statement of Discounting Transaction”.

In the keyword group NorthernDeduct , it is now possible to perform multiple entries for option Zone A – Resident of Northern Zones and option Zone B – Resident of Intermediate Zone under the Residence.nr keyword.

TP-1029.8.36.EC-V - Tax Credit for the Acquisition or Lease of a New Energy-Efficient Vehicle

a) Limit increase for the restricted farm loss (RFL) rules

b) Deduction for safety deposit boxes eliminated

c) Processing the income from a deemed disposition

d) Readjustment of New Brunswick 2013 income tax rates

e) Net corporate income tax rate changes for 2013

Federal:

• T3APP - Application for Trust Account Number

Federal:

• Schedule 12 – Minimum Tax
• T3MJ - T3 Provincial and Territorial Taxes for 2013 - Multiple Jurisdictions
• Federal Work Charts

All provincial tax calculation schedules:

• T3AB – Alberta Tax
• T3BC – British Columbia Tax
• T3MB – Manitoba Tax
• T3NB – New Brunswick Tax
• T3NL – Newfoundland Tax
• T3NS – Nova Scotia Tax
• T3NT – Northwest Territories Tax
• T3NU – Nunavut Tax
• T3ON – Ontario Tax
• T3PE – Prince Edward Island Tax
• T3SK – Saskatchewan Income Tax
• T3SK(CG) – Saskatchewan Farm and Small Business Capital Gains Tax Credit
• T3YT – Yukon Tax

Quebec:

• Schedule F – Income Tax Payable by a Specified Trust for a Specified Immovable
• Quebec Work Charts

In-house forms:

• Specified investment flow-through (SIFT) trust income and distribution tax calculations

As always, we recommend that you verify your carryforwards carefully before processing your client files.

a) Pertaining to the new form T3APP (Application for Trust Account Number):

b) In the keyword group Business, pertaining to federal form T1055 (Summary of Deemed Dispositions) and, when applicable, Quebec form TP-653 (Deemed Sale Applicable to Certain Trusts):

1. Deemed-Disp.cca : Reason for deemed disposition and date on which it occurred

   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.

2. Land-Inventory : Deemed disposition of land held in inventory

   Use the keyword Land-Inventory to record the deemed disposition of land held in inventory.

3. Date-DeemDisp : Date of deemed disposition

   Use the keyword Date-DeemDisp to enter the date the trust is deemed to have disposed of its land inventory.

4. Deemed-Amount : Fair market value of land inventory

   If a deemed disposition occurs, the trust is considered to have disposed of its land inventory at the fair market value (FMV) at the end of the deemed disposition day.

   Use the keyword Deemed-Amount to enter the FMV of the land held in inventory.

5. Amount-PaidPrior : Amount paid for the specified animals at the end of the fiscal period

   Use the keyword Amount-PaidPrior to enter the amount paid for the specified animals at the end of the fiscal period.

   This information is used to determine the value of purchased inventory for specified animals.

6. Amount-Paid-Cur : Amount paid in the year for the specified animals and other inventory for fiscal period

   Use the keyword Amount-Paid-Cur to enter the amount paid in the year for the specified animals and other inventory for the fiscal period.

   This information is used to determine the value of purchased inventory for specified animals and other inventory.

7. FMV-Inventory : Fair market value for all other inventory for the fiscal period (if different from the amount paid)

   Use the keyword FMV-Inventory to enter the fair market value for all other inventory for the fiscal period only if different from the amount paid entered with the keyword Amount-Paid-Cur. If the FMV is equal to the amount paid, then the chosen value of the other inventory will equal the amount paid.

8. Prior-FixedValue : Chosen value of the specified animals at the end of the 2012 fiscal period

   Use the keyword Prior-FixedValue to enter the chosen value of the specified animals at the end of the 2012 fiscal period.

9. Cur-Fixed-Value : Chosen value of purchased inventory for specified animals and other inventory

   Use the keyword Cur-Fixed-Value to enter the chosen value of purchased inventory for specified animals and other inventory.

   Specified animal

   In the year of acquisition, a farmer may choose to value a "specified animal" at 70% of its cash cost or at a greater amount not exceeding its cash cost.

   Subsection 28(1.3) provides a formula for prorating the 70% in taxation years which are less than 51 weeks. The formula is 100 minus (30 x (number of days in the business)/(number of days in the taxation year)).

   Valuing the purchased inventory

   Value, at one of the following amounts, the specified animals that you bought in your 2013 fiscal period and still have at the end of this period:

   • the cash cost;
   • 70% of the cash cost; or
   • any amount between these two amounts.
   Value, at one of the following amounts, the specified animals that you bought before the 2013 fiscal period and still have at the end of this period:
   • the cash cost;
   • 70% of:

   • the value of the specified animals for MIA purposes as determined at the end of the 2012 fiscal period; plus
   • any amounts you paid in the 2013 fiscal period toward the purchase price; or

   • any amount between these two amounts.

   If no value is entered, DT Max will use the value calculated at 70% as chosen value of purchased inventory.

10. MIA-Purchased : Select the type of inventory and the corresponding purchase year (mandatory inventory adjustment)
    Use the keyword MIA-Purchased to enter the type of inventory and the corresponding purchase year for the purposes of the mandatory inventory adjustment (MIA).
    The mandatory inventory adjustment decreases the net loss if the taxpayer held inventory at the end of the fiscal period. It applies to a farmer (other than the fiscal period in which the farmer has died) using the cash method in computing income from a farming business.
    You have to make the MIA if all of the following conditions apply:
    • you use the cash method to report your income;
    • you have a net loss on line 9899 of Form T2042 (line 9969 of Forms T1163/T1164/T1273/T1274); and
    • the taxpayer bought inventory and still had it at the end of the 2013 fiscal period. This does not refer only to inventory bought in 2013. It includes inventory the taxpayer had previously bought and still owned at the end of the 2013 fiscal period.

    The MIA is the lesser of:

    • the net loss before adjustments on line 9899 (Line 9969 for AgriStability and AgriInvest); or
    • the value of the purchased inventory the taxpayer still had at the end of the 2013 fiscal period.

    To value the inventory, you need to know the meaning of the following terms.

    Inventory is a group of items that a business holds and intends to consume or sell to its customers.

    Farm inventory is tangible property that is:

    • held for sale, such as harvested grain;
    • used in the production of saleable goods, such as seed and feed; or
    • in the process of being produced, such as standing crops, or feeder livestock.

    Seed that you have already planted, and fertilizer or chemicals that you have already applied, are no longer part of the inventory items, but are included in the value of the standing crop that may be included in the Optional Inventory Adjustment (OIA).

    Purchased inventory is inventory bought and paid for.

    Specified animals are horses. You may also choose to designate cattle that are registered under the Animal Pedigree Act as specified animals. To make this choice, put a note on the income tax return saying that you want to designate the animal this way. If you indicate on the return that it is a specified animal, the government will continue to consider it as such until you sell it.

    Cash cost is the amount you paid to buy your inventory.

    Fair market value (FMV) is generally the highest dollar value you can get for your property in an open and unrestricted market between an informed and willing buyer and an informed and willing seller who are dealing with each other at arm's length.

    Value of purchased inventory

    Except for specified animals, you have to value any purchased inventory that you bought before or during the 2013 fiscal period at the lesser of:

    • the cash cost; or
    • the fair market value.

    To determine which amount is less, compare separately each item or group of items in the inventory.

    In the drop-down menu from the keyword MIA-Purchased , the following options have been included:

    Specified animals (year of purchase 2013)
    Specified animals (year of purchase 2012)
    Specified animals (year of purchase 2011)
    Specified animals (year of purchase 2010)
    Specified animals (year of purchase 2009 and prior)
    Other inventory (year of purchase 2013)
    Other inventory (year of purchase 2012)
    Other inventory (year of purchase 2011)
    Other inventory (year of purchase 2010)
    Other inventory (year of purchase 2009 and prior)
    

For keyword Expenses.c , pertaining to carrying charges and interest expenses on federal Schedule 8 (Investment Income, Carrying Charges, and Gross-Up Amount of Dividends Retained by the Trust):