What's new for T3/T5013 Internet version 20.05?

The latest DT Max program update is now available for downloading. It features the T3/TP-646 program for the tax years ending from 2005 to 2016 inclusively. It also features the fully functional T5013 program for paper and electronic filing of the Partnership Information Return (T5013 forms) for fiscal periods ending from 2013 to 2016. Installing this version will update your version of DT Max to 20.05.

Please note that all program versions are available on the Internet.

In this version...

DT Max T3

1. Program certification
2. Version highlights/Tax changes
   1. Changes affecting the T3 return
      1. Testamentary trusts: SIN of the deceased now mandatory
      2. Designation of investment tax credit to the beneficiaries
      3. Change affecting capital gain deductions for spousal trusts
   2. Schedule 7: Changes affecting the designation of pension benefits
   3. Schedule 8: Rate for the gross-up amount of dividends other than eligible dividends for 2016 and later years
   4. Schedule 11: Donations and gifts tax credit and recovery tax
   5. T3A: Carrying back donations for graduated rate estates (GRE)
   6. Changes affecting the T3ON
      1. Graduated provincial income tax rates and Ontario surtax
      2. Increase of the top Ontario credit rate for the charitable donations tax credit
      3. New chart for the calculation of the Ontario additional tax for minimum tax purposes
   7. All Provincial and Territorial tax calculation forms: New line for the qualified disability trust (QDT) recovery tax
   8. T184 - 2016 Capital Gains Refund to a Mutual Fund Trust
   9. T1079 and TP-274.F: Calculation of the capital gain for the principal residence
   10. TP-646: Changes pertaining to the GRE and the QDT
   11. Schedule F: New rule regarding inter vivos trusts
   12. RL-16: Designation of certain benefits allocated by a trust to its beneficiaries
   13. TP-776.42.F: Changes pertaining to the basic exemption amount in the calculation of the alternative minimum tax
   14. Quebec tax credit for donations: Limit changed for the eligible amount
   15. Instalments
   16. Straight-line depreciation - Automatic calculation of the CCA and the half-rate rule on an acquisition made in the year
3. Warning: verifying carryforwards
4. New forms
5. Revised forms
6. Deleted forms
7. New keywords
8. Revised keyword
9. Deleted keywords
10. New options
11. Deleted options

DT Max T5013

1. Program certification
2. Version highlights
   1. New federal partner code 6 for retired partners
   2. Registered charities and registered Canadian amateur athletic associations now allowed as members of a limited partnership
   3. Change in taxable amount and dividend tax credit of non-eligible dividends for 2016 and later years
   4. Schedule 8 changes pertaining to CCA Class 43.1 and Class 43.2
   5. T661: Increase of pensionable earnings
3. New forms and related keywords
4. Revised forms
5. New keywords
6. Deleted keywords
7. New options
8. Deleted options

DT Max T3

1. Program certification

   DT Max T3 is certified under the following authorization numbers:

   Paper filing

   Federal schedules: CRA-16-501

   Quebec schedules: RQIF-1601

   Federal slips: RC-16-119

   Quebec slips: FS1616029

   In addition, this version has received full CRA certification for the 2D Barcode on federal form T1013, Authorizing or Cancelling a Representative.

   Electronic filing

   Quebec RL-16 slip: RQ-16-16-032

2. Version highlights/Tax changes

   1. Changes affecting the T3 return

      1. Testamentary trusts: SIN of the deceased now mandatory

         For testamentary trusts, for 2016 and subsequent tax years, the social insurance number (SIN) of the deceased is mandatory, otherwise the T3 return will not be processed. Due to this requirement, the keyword SIN in the Trust group has become compulsory for all testamentary trusts.

      2. Designation of investment tax credit to the beneficiaries

         For 2016 and later, only graduated rate estates and communal organizations can designate an investment tax credit to their beneficiaries.

      3. Change affecting capital gain deductions for spousal trusts

         Starting in 2016, a spousal trust can no longer claim a capital gains deduction on qualifying property (qualified farm or fishing property, or qualified small business corporation shares) in the year the beneficiary spouse dies.

   2. Schedule 7: Changes affecting the designation of pension benefits

      The condition for generating Schedule 7 has been modified so that if the trust would like to designate pension benefits, it must in a tax year be a resident in Canada and must be a graduated rate estate of an individual. Pension benefits will no longer be designated based simply on it being a testamentary trust.

   3. Schedule 8: Rate for the gross-up amount of dividends other than eligible dividends for 2016 and later years

      For 2016, the rate applicable for the gross-up amount of dividends other than eligible dividends is 17%, regardless of when they were paid.

      Previously, subparagraph 82(1)(b)(i) amended by 2013, c.33, s.5(1), was applicable to "dividends paid after 2013." Therefore in a non-calendar year end, a trust could have dividends paid before or after 2013 allowing for two different rates. The same subparagraph has been amended by 2016, c. 7, s. 9(1), and is applicable to "the 2016 and subsequent taxation years." The subparagraph is written as such that the rate applies to the taxation year rather than when a dividend is paid. Therefore, if a trust is producing a 2016 taxation year return, the 2016 dividend rates apply to all dividends other than eligible dividends, regardless of when they are paid.

   4. Schedule 11: Donations and gifts tax credit and recovery tax

      For 2016 and subsequent tax years, the donations and gifts tax credit is no longer calculated on Schedule 11 but rather on the new Schedule 11A. The amount from line 31 of Schedule 11A will automatically be carried to line 17 of Schedule 11.

      A new line 12 has been added for the federal recovery tax. A trust that was a qualified disability trust in a previous year may be subject to a new recovery tax . This tax is calculated on the new form T3QDT-WS.

      For more information on the recovery tax and this new form, please see our New forms section below.

   5. T3A: Carrying back donations for graduated rate estates (GRE)

      An estate can claim the donations and gifts tax credit in respect of a donation that is not a GRE donation or former GRE donation in the year in which the donation is made or in any of the five following years. The donation cannot be allocated to a tax year of the individual or an earlier year of the estate.

      A graduated rate estate can claim GRE donations in the tax year in which the donation is made, in an earlier tax year of the GRE or the last two years of the deceased individual (the final return and the return for the preceding year).

      In order for a GRE to carry back the donations, a new keyword has been introduced. The keyword Amount-CB.d can be found within the Donations group. This keyword will automatically appear when the Trust-Type is a GRE.

   6. Changes affecting the T3ON

      1. Graduated provincial income tax rates and Ontario surtax

         Graduated provincial income tax rates and the Ontario surtax continue to apply for the first 36 months of eligible estates (graduated rate estates) and to qualified disability trusts.

         All other trusts taxable in Ontario must pay the Ontario top marginal provincial income tax rate of 20.53% on all their taxable income. These trusts will not pay any Ontario surtax as it is already reflected in the top marginal provincial income tax rate.

      2. Increase of the top Ontario credit rate for the charitable donations tax credit

         The top Ontario credit rate for the Charitable Donations Tax Credit has been raised to 17.41% for trusts other than GREs or QDTs.

      3. New chart for the calculation of the Ontario additional tax for minimum tax purposes

         The Ontario additional tax for minimum tax purposes is now calculated after the Ontario surtax and the dividend tax credit. As such, a new chart for the calculation of the Ontario additional tax for minimum tax purposes has been added to page 2.

   7. All Provincial and Territorial tax calculation forms: New line for the qualified disability trust (QDT) recovery tax

      A new line has been added on all the Provincial and Territorial tax calculation forms for the QDT recovery tax. This amount will come from line 27 of the T3QDT-WS.

   8. T184 - 2016 Capital Gains Refund to a Mutual Fund Trust

      The capital gains refund mechanism for mutual fund trusts has been amended to reflect the top marginal income tax rates in the formulas that are used in computing refundable tax.

   9. T1079 and TP-274.F: Calculation of the capital gain for the principal residence

      The following proposed change has been added to the calculation of the capital gain on form T1079, Designation of a Property as a Principal Residence by a Personal Trust:

      If the principal residence was disposed of after October 2, 2016, and you were a non-resident throughout the year of acquisition of the property, then you are not eligible to use the "plus 1" in the calculation of the net capital gain.

      Please note that this change in the Taxation Act is also reflected on Quebec form TP-274.F, Designation of a Property as a Principal Residence of a Personal Trust.

      A new keyword Non-Resident.cg has been added to the CapitalProp group for this calculation.

   10. TP-646: Changes pertaining to the GRE and the QDT

       Box 7c and box 26 will automatically be ticked if the Trust-Type is a graduated rate estate (GRE). However, as in the past, box 7c can also be ticked by using the keyword Estate in the Trust group.

       Box 27 on page 1 will be ticked when two conditions are met: first the Trust-Type must be set as a qualified disability trust (QDT), and second at least one of the beneficiaries must have QDT-Election set to Yes.

   11. Schedule F: New rule regarding inter vivos trusts

       As of 2016, an inter vivos trust that is not tax-exempt and that is not resident in Canada at any time in the year must pay income tax at a rate of 4.47% on the net income derived from the rental of a specified immovable.

   12. RL-16: Designation of certain benefits allocated by a trust to its beneficiaries

       As of 2016, the designation of certain benefits allocated by the trust to its beneficiaries is limited to a trust that is a graduated rate succession that was a resident in Canada throughout the year.

       Only this type of succession may designate income such as:

       • a retirement pension giving entitlement to a tax credit;

       • death benefits from an office or employment;

       • a retirement allowance that may be transferred; or

       • a single pension payment that may be transferred.

   13. TP-776.42.F: Changes pertaining to the basic exemption amount in the calculation of the alternative minimum tax

       Please note that form TP-776.47 has been replaced by form TP-776.42.F. See our Revised forms section below for details.

       Testamentary trusts that do not designate themselves as graduated rate successions and grandfathered inter vivos trusts are no longer eligible for the basic exemption of $40,000 in the calculation of the alternative minimum tax.

       In addition, only one succession for each deceased individual may designate itself as a graduated rate succession and benefit from the basic exemption amount.

       Due to this change, the following keywords have been deleted (see our Deleted keywords section below for details):

       • MULTI-TRUST

       • TRUST-NAME.MULTI

       • TRUST-ACCT-NO

       • MINTAX-ALLOCATED

       • TITLE-DATE

   14. Quebec tax credit for donations: Limit changed for the eligible amount

       For Quebec, as of 2016, the eligible amount that gives entitlement to the tax credit for donations is no longer limited to 75% of the trust's net income. The limit now corresponds to the total charitable donations made during the year.

   15. Instalments

       Prior to 2016, testamentary trusts were exempted from the tax instalment rules. For 2016 and subsequent years, only a graduated rate estate is exempt from making the tax instalments.

   16. Straight-line depreciation - Automatic calculation of the CCA and the half-rate rule on an acquisition made in the year

       This new version of DT Max can now automatically calculate the capital cost allowance (CCA) in the case of a straight-line depreciation. Starting in tax year 2016, for the classes of asset(s) for which the CCA must be calculated according to the straight-line depreciation method, the following changes apply:

       • In the case of an acquisition made in the year of Class 13 or Class 14 property, for which the straight-line depreciation is calculated according to the lifetime of the asset, the program will automatically calculate the annual CCA and apply the half-rate rule if applicable. You will no longer need to manually enter the annual amount subject to depreciation in the keyword ANNUAL-CCA . In addition, the calculated CCA as well as the lifetime remaining in the life of the asset(s) will be automatically carried forward to the following year in the keyword ANNUAL-CCA of the same group.

       • For existing Class 13 and Class 14 assets, in addition to entering the annual amount subject to depreciation in the keyword ANNUAL-CCA , you must enter new information this year, namely the number of months remaining in the life of the asset(s). This additional information will allow the program to calculate the remaining lifetime of the asset(s) for the following year and will automatically carry forward this information in the future.

       • For Classes 15, 19, 20, 21, 24, 27, 29 and 34, the annual CCA will be automatically calculated according to the indicated rate and will also be carried forward to the following year.

3. Warning: verifying carryforwards

   As always, we strongly recommend that you verify carefully your carryforward amounts before processing your client files.

4. New forms

   Federal

   • T3QDT - Joint Election for a Trust to be a Qualified Disability Trust

     For the 2016 and subsequent tax years, use the T3QDT form if the trust is a testamentary trust that arose on the death of a particular individual and is jointly electing with one or more beneficiaries under the trust (referred to as an electing beneficiary) to be a qualified disability trust (QDT) for the year.

     The following conditions must be met for DT Max T3 to generate this form:

     1. The trust must jointly elect to be a QDT by using the keyword QDT-JointElect in the Trust group;

     2. There must be at least one electing beneficiary. The electing beneficiary will be identified by the keyword QDT-Election in the Beneficiary group;

     3. The electing beneficiary's social insurance number must be entered.

     The following new "Error and warning messages" have been added to identify any possible issues:

     • "Missing data for keyword SIN.BEN when keyword QDT-Election is yes."

     • "An electing beneficiary must be entered with keyword QDT-Election ."

     • "Trust must be resident in Canada to be a QDT."

   • T3QDT-WS - Recovery Tax Worksheet

     A trust that was a qualified disability trust in a previous tax year is subject to the new recovery tax in a year if the following conditions are met (refer to the following page from the CRA website: https://www.canada.ca/content/dam/cra-arc/formspubs/pub/t4013/t4013-16e.pdf , page 53):

     • The trust ceases during the year to have among its beneficiaries any individuals who in one or more earlier taxation years of the trust were electing beneficiaries of the trust. This will include the year in which the electing beneficiary of the trust (or if the trust had more than one electing beneficiary, the last of them) dies;

     • The year is the taxation year deemed to have ended because the trust ceased to be resident in Canada;

     • The trust distributes capital to a beneficiary other than an individual who is an electing beneficiary for a particular year or was an electing beneficiary of the trust in an earlier taxation year. The making by the trust of an amount payable out of the trust's income for a year (i.e., the flowing out of its current income), or the subsequent satisfaction of a beneficiary's right to enforce such an amount, does not trigger the application of the recovery tax. A payment to a beneficiary in the beneficiary's capacity as a creditor of the trust also does not trigger the application of the recovery tax.

     Generally, the recovery tax is calculated based on the difference between the total of all amounts, each of which is the tax the trust would have paid under Part I of the Income Tax Act for an earlier tax year if the trust had not been a qualified disability trust for the earlier tax year, and the actual tax paid by the trust.

     The recovery tax calculation should only be applicable in 2016 if the trust had more than one tax year ending in 2016 and the trust was a qualified disability trust in a previous tax year ending in 2016. The federal and the provincial/territorial recovery tax will be calculated on the new form T3QDT-WS.

     In order to capture the information from the prior year, four new keywords have been added to the Trust-Hist group. These keywords will automatically be generated and carried forward for the following year of the trust. A manual entry is only required for new clients or if an immediate calculation of the tax is required.

     New "Error and warning messages" have been added to identify any possible issues:

     • "Warning: Recovery-Tax inconsistent with Trust-Type ."

     • "Warning: Trust may be subject to the Recovery-Tax ."

   • Schedule 11A - Donations and Gifts Tax Credit Calculation

     New Schedule 11A calculates the total donations and gifts tax credit which previously was calculated on Schedule 11. For donations made after 2015, the tax credit rate has changed as a result of the new top personal tax rate of 33%. The calculation has been amended so that the new tax credit rate of 33% will apply to the eligible amount of gifts greater than $200. For a GRE and QDT, the new tax credit rate of 33% will apply to the eligible amount of gifts greater than $200 to the extent that a GRE and QDT have taxable income in excess of $200,000 for the tax year.

5. Revised forms

   Federal

   • T3 - Trust Income Tax Return

   • Schedule 1 - Dispositions of Capital Property

   • Schedule 1A - Capital Gains on Gifts of Certain Capital Property

   • Schedule 2 - Reserves on Dispositions of Capital Property

   • Schedule 3 - Eligible Taxable Capital Gains

   • Schedule 4 - Cumulative Net Investment Loss

   • Schedule 7 - Pension Income Allocations and Designations

   • Schedule 8 - Investment Income, Carrying Charges, and Gross-up Amount of Dividends Retained by the Trust

   • Schedule 9 - Income Allocations and Designations to Beneficiaries

   • Schedule 10 - Part XII.2 Tax and Part XIII Non-Resident Withholding Tax

   • Schedule 11 - Federal Income Tax

   • Schedule 12 - Minimum Tax

   • All provincial and territorial tax calculation schedules (T3AB, T3MB, T3NB...)

   • T3 Slip and Summary

   • T3A - Request for Loss Carryback by a Trust

   • T3-ADJ - T3 Adjustment Request

   • T3-DD - Direct Deposit Request for T3

   • T3FFT - T3 Federal Foreign Tax Credit

   • T3PFT - T3 Provincial or Territorial Foreign Tax Credit

   • T3MJ - T3 Provincial and Territorial Taxes for 2016 - Multiple Jurisdiction

   • T3M - Environmental Trust Income Tax Return

   • T3P - Employees' Pension Plan Income Tax Return

   • TX-19 - Asking for a Clearance Certificate

   • T184 - 2016 Capital Gains Refund to a Mutual Fund Trust

   • T776 - Statement of Real Estate Rentals

   • T1013 - Authorizing or Cancelling a Representative

   • T1055 - Summary of Deemed Dispositions

   • T1079 - Designation of a Property as a Principal Residence by a Personal Trust

   • T1079-WS - Principal Residence Worksheet

   • T1139 - Reconciliation of 2016 Business Income for Tax Purposes

   • T1172 - Additional Tax on Accumulated Income Payments from RESPs

   • T1175 - 2016 Farming - Calculation of Capital Cost Allowance (CCA) and Business-Use-of-Home Expenses

   • T2038 - Investment Tax Credit

   • T2042 - Statement of Farming Activities

   • T2121 - Statement of Fishing Activities

   • T2125 - Statement of Business or Professional Activities

   • T1163 - 2016 Statement A - AgriStability and AgriInvest Programs Information and Statement of Farming Activities for Individuals

   • T1164 - 2016 Statement B - AgriStability and AgriInvest Programs Information and Statement of Farming Activities for Additional Farming Operations

   • T1273 - Statement A - Harmonized AgriStability and AgriInvest Programs Information Statement of Farming Activities for Individuals

   • T1274 - Statement B - Harmonized AgriStability and AgriInvest Programs Information Statement of Farming Activities for Additional Farming Operations

   Quebec

   • TP-646 - Trust Income Tax Return

   • Schedule A - Taxable Capital Gains and Designated Net Taxable Capital Gains

   • Schedule B - Investment Income, Gross-Up of Dividends Not Designated and Adjustment of Investment Expenses

   • Schedule C - Summary of Allocations and Designations

   • Schedule D - Carry-Back of a Loss

   • Schedule E - Income Tax on the Taxable Distributions Amount and Calculation of Eligible Dividends to Be Designated

   • Schedule F - Income Tax Payable by a Specified Trust for a Specified Immovable

   • Schedule G - Additional Information: Trust Resident in Quebec That Owns a Specified Immovable

   • TP-646.W - Keying Summary for the Trust Income Tax Return

   • TP-646.X - Keying Summary for Schedules A, F and G of the Trust Income Tax Return

   • TP-646.Y - Keying Summary for Forms TP-80 and TP-128.F filed with the Trust Income Tax Return

   • TP-646.Z - Keying Summary for Forms Filed with the Trust Income Tax Return

   • RL-16 Slip - Trust Income

   • MR-14.A - Notice Before Distribution of the Property of a Succession

   • MR-14.B - Notice Before Distribution of Property

   • TP-80.1 - Calculation of Business or Professional Income, Adjusted to December 31

   • TP-128.F - Income Earned by a Trust from the Rental of Immovable Property

   • TP-653 - Deemed Sale Applicable to Certain Trusts

   • TP-668.1 - Taxable Capital Gains of a Trust That Give Entitlement to a Deduction

   • TP-750 - Income Tax Payable by a Trust Resident in Quebec That Carries on a Business in Canada, Outside Quebec, or by a Trust Resident in Canada, Outside Quebec, That Carries on a Business in Quebec

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

   • TP-776.42.F - Alternative Minimum Tax of a Trust

     Please note that as of 2016, the above form now replaces form TP-776.47, also known as "Alternative Minimum Tax of a Trust".

   In-house forms

   • Assembly instructions

     Forms previously sent to the Summerside Tax Centre should now be addressed to Prince Edward Island Tax Centre. The address itself remains the same, only the name of the tax centre has changed.

   • Investment Income and Expense Supplementary

   • Beneficiary Income Allocation

     All lines relating to capital gains from qualified farm or fishing property before April 21, 2016, have been removed. The amounts are no longer distinguished by time period.

   • Charitable Donations Schedule (Federal and Quebec)

     Total donations carried back to prior years has been added to the schedules.

   • Invoice

     New forms have been added to the billing menu.

6. Deleted forms

   Federal

   • Schedule 5 - Spousal or Common-Law Partner Trust's Capital Gains Deduction in Year of Beneficiary's Death

   • Schedule 6 - Trusts' Agreement to Allocate the Basic Exemption from Minimum Tax

   • T3SK(CG) - Saskatchewan Farm and Small Business Capital Gains Tax Credit (Trusts)

7. New keywords

   1. In the Trust group, pertaining to the new federal form T3QDT (Joint Election for a Trust to be a Qualified Disability Trust):

      1. Electing-Trust : Whether it is an electing trust under section 94

         Use the keyword Electing-Trust to indicate whether the trust is an electing trust as defined in section 94.

         Paragraph 94(3)(f) provides additional rules that generally have the effect, on an elective basis, of excluding from the taxable base of the trust for Canadian tax purposes any income relating to property that has been contributed to the trust otherwise than by a resident contributor to the trust or, if there is a current resident beneficiary under the trust, a connected contributor to the trust (i.e., property that is part of the non-resident portion of the trust). In effect, this is accomplished by deeming there to be a second trust in addition to the electing trust. The additional trust is deemed to hold the property that forms the trust's non-resident portion. This has the effect of removing from the taxable base of the trust any income derived from that property.

         In order for an election by a trust to be an electing trust to be valid, it must be filed with the Minister of National Revenue on or before the trust's filing due date for its first taxation year in which it holds property that is at a time in the year part of its non-resident portion and throughout which it is deemed by subsection 94(3) to be resident in Canada. Once made, the election is valid for that taxation year and for all subsequent taxation years.

      2. Year-Election : Year the trust elected to have paragraph 94(3)(f) apply

         Use the keyword Year-Election to indicate the year the trust elected to have paragraph 94(3)(f) apply. This information is required for question 1 on the T3 Trust Income Tax and Information Return.

      3. QDT-JointElect : Whether the trust is electing to be a QDT

         Use the keyword QDT-JointElect to indicate whether the trust is jointly electing with one or more beneficiaries under the trust to be a qualified disability trust for the year. This keyword is required to produce the form T3QDT.

   2. In the Beneficiary group, pertaining to the new federal form T3QDT:

      1. QDT-Election : Whether the beneficiary is an electing beneficiary

         Use the keyword QDT-Election to indicate whether the beneficiary is an electing beneficiary. An electing beneficiary is an individual designated as a beneficiary in the instrument that established the trust who makes a joint election with the trust to consider the trust to be a qualified disability trust for the trust year. For the beneficiary's taxation year during which the trust's taxation year ends, the following conditions must be met:

         • The beneficiary suffers from a severe and prolonged impairment in mental or physical functions.

         • The impairment is certified by a health professional.

         • The beneficiary does not make the joint election with another trust, for a taxation year of a trust ending during the beneficiary's taxation year, to consider that this other trust is a qualified disability trust.

         If the beneficiary is an electing beneficiary, the eligible person's social insurance number will be entered on page 1 of the TP-646 Quebec return.

      2. BEN-OTHERTRUST : Whether the electing beneficiary is a beneficiary under any other trust

         Use the keyword BEN-OTHERTRUST to indicate whether the electing beneficiary is a beneficiary under any other trust. If the answer is Yes, then the trust account number must be provided. This information will be captured on Form T3-QDT, Joint Election for a Trust to be a Qualified Disability Trust.

      3. TRUST-ACCTNUM : Trust account number

         Use the keyword TRUST-ACCTNUM to enter the account number of the other trust of which the individual is a beneficiary.

   3. In the new keyword group Recovery-Tax , pertaining to the new federal form T3QDT-WS (Recovery Tax Worksheet):

      1. Recovery-Tax : Whether the trust is subject to the recovery tax

         Use the keyword Recovery-Tax to indicate whether the trust was a qualified disability trust in a previous tax year and is subject to the recovery tax under paragraph 122(1)(c).

      2. Distributed-Amt : Amount distributed to an electing beneficiary

         Use the keyword Distributed-Amt to enter the amount distributed to an electing beneficiary that can reasonably be considered to be made out of the after-tax income, other than an amount distributed in the current year.

   4. In the Trust-Hist group, pertaining to the T3 Trust Income Tax and Information Return and the new federal form T3QDT-WS:

      1. TrustType.h : Trust type of prior tax year

         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 trust type and carry it forward. This keyword is relevant for qualified disability trusts and for graduated rate estates.

         For QDT, this information is useful to track whether a recovery tax may be required. In certain cases, diagnostics will be generated when it deems that a recovery tax may be applicable.

      2. Taxable-Income.h : Taxable income for the prior year (line 56)

         Historical information for previous tax years should be entered by the user for each new client. DT Max will generate the information of the taxable income and carry it forward. This keyword will be used to calculate the recovery tax on form T3QDT-WS.

      3. FedTaxPayable.h : Actual federal tax paid for the prior year (line 81)

         Historical information for previous tax years should be entered by the user for each new client. DT Max will generate the information of the federal tax paid and carry it forward. This keyword will be used to calculate the recovery tax on form T3QDT-WS.

      4. PROVTAXPAYABLE.H : Provincial or territorial tax paid for the prior year (l.82)

         Historical information for previous tax years should be entered by the user for each new client. DT Max will generate the information of the provincial or territorial tax paid and carry it forward. This keyword will be used to calculate the recovery tax on form T3QDT-WS.

   5. New keyword in the Donations group, pertaining to Quebec form TP-1012.B (Carry-Back of a Deduction or Tax Credit ) and the new federal Schedule 11A (Donations and Gifts Tax Credit Calculation):

      Amount-CB.d : Donations and gifts carried back to prior years

      Use the keyword Amount-CB.d to enter the amount of donations and gifts carried back to prior years.

      For deaths that occur after December 31, 2015, donations made by will and designation donations will no longer be deemed to be made by an individual immediately before the individual's death, but by the individual's estate at the time of the transfer of the donated property, provided that such transfer is made within 36 months following the death.

      The eligible amount of donations may be allocated by the legal representative of the estate both in the estate's tax return for the year of the transfer and the prior years as well as in the tax returns of the deceased individual for his last two taxation years.

   6. In the CapitalProp group , pertaining to the disposition of a principal residence, for the calculation on federal form T1079 (Designation of a Property as a Principal Residence by a Personal Trust):

      Non-Resident.cg : Non-resident throughout the year of acquisition of the property

      If the taxpayer disposed of a principal residence after October 2, 2016, and was a non-resident throughout the year of acquisition of the property, he/she is not eligible to use the plus 1 in the calculation.

   7. In the Clearance group, pertaining to Quebec form MR-14.A (Notice Before Distribution of the Property of a Succession):

      1. TP646-filed : Whether form TP-646 must be filed for the succession

         Use the keyword TP646-filed to indicate whether you have to file form TP-646 for the succession.

      2. REASON-NO-TP646 : Reason why no form TP-646 is being filed

         Use the keyword REASON-NO-TP646 to explain why there is no TP-646 being filed.

   8. In the Authorize group, pertaining to federal form T1013 (Authorizing or Cancelling a Representative):

      1. Legal-Rep-Name : Name of the legal representative of the taxpayer [T1013 Part 5]

         Use the keyword Legal-Rep-Name to enter the name of the actual legal representative [T1013 Part 5].

      2. CORPNAME&TITLE : Name of corporation and title of officer (if applicable)

         Use the keyword CORPNAME&TITLE to enter the name of the corporation if the legal representative is a corporate officer and their title [T1013 Part 5].

   9. New keyword in the group for federal form T3A (Request for Loss Carryback by a Trust):

      T3-Adj-Filed : Whether Form T3-ADJ has been filed

      Use the keyword T3-Adj-Filed to indicate whether the Form T3-ADJ has been filed to include a subsection 104(13.1) or (13.2) designation for a prior year such that the loss that is being requested to be carried back will offset the income inclusion for that year.

   10. In the keyword CCA-Class , pertaining to Class 15 AL, in the keyword group Business :

       TIMBER-RATE : Rate per cord or board foot of timber cut in the taxation year.

8. Revised keyword

   Considering the automatic calculation of the capital cost allowance (CCA) for assets subject to straight-line depreciation:

   For ANNUAL-CCA in the keyword CCA-CLASS , with respect to Classes 13 and 14, in the keyword group Business : a new field was added to the left of this keyword to enter the number of months remaining in the lifetime of a Class 13 or 14 asset.

9. Deleted keywords

   1. In the Trust-Type subgroup of the Trust keyword group:

      1. CODE-NUMBER : Federal code number for other trust

      2. CODE-NUMBER-QC : Quebec code number that corresponds to the trust type

      These two keywords have been removed as DT Max T3 automatically inputs the designated codes, as outlined by the federal and Quebec governments, for the different trust types.

   2. The MULTI-TRUST keyword group:

      1. MULTI-TRUST : More than one trust qualifying for the minimum tax exemption

      2. TRUST-NAME.MULTI : Names of trusts contributed to by the same individual

      3. TRUST-ACCT-NO : Trust account number

      4. MINTAX-ALLOCATED : Allocation of basic exemption from minimum tax

      5. TITLE-DATE : Title of authorized officer and date of signature

   3. The FORM-T657 subgroup in the Beneficiary group:

      1. FORM-T657 : Information from the spouse's form T657

      2. CAP-GAIN.CH : Year and amount of eligible taxable capital gains reported

      3. EXEMPTION.CH : Year and capital gain deduction as stated on return

      4. AMOUNT.T657 : Year and amount of loss claimed on the personal tax return

   4. In the Marital-Status subgroup of the Clearance keyword group:

      1. MATRIMONY-REGIME : Matrimonial regime of deceased person

      2. STATUS : Status of deceased person

10. New options

    1. For the new keyword Amount-CB.d :

       Year of death (individual)
       Year prior to year of death (individual)
       1st prior year (trust)
       2nd prior year (trust)
       3rd prior year (trust)
       4th prior year (trust)
       5th prior year (trust)
       

    2. For the new keyword Legal-Rep-Name :

       Trustee
       Other (specify)
       

    3. For the keyword Trust-Info , pertaining to the T3 Trust Income and Information return:

       Change to the beneficiaries of the trust
       Trust holds shares in a private corporation
       Qualifying transfer based on the rollover rule (Qc)
       

    4. For the keyword ELIG-TRADE.ITC , pertaining to federal Schedule T2038 (Investment Tax Credit):

       Architect
       Draftsperson-mechanical design
       Drywall Finisher and Plasterer
       Embalmer
       Embalmer and funeral director
       Gasfitter - Class A
       Gasfitter - Class B
       Heavy Duty Equipment Operator (Dozer)
       Heavy Duty Equipment Operator (Excavator)
       Heavy Duty Equipment Operator (Tractor-Loader-Backhoe)
       Landscape Horticulturist
       Mobile Crane Operator (Hydraulic)
       Tower Crane Operator
       

    5. For the keywords SBITC-CF and SBITC-CB , pertaining to the T3NB-SBI (New Brunswick Small Business Investor Tax Credit):

       3rd prior year

    6. For the keyword Property in the Clearance group:

       Vehicles

    7. For the keyword Override , pertaining to the types of returns or forms where line numbers can be overridden:

       Schedule 11A
       T3QDT-WS
       

    8. For the keyword First-Nation in the Trust group, in the list of aboriginal settlements:

       Délînê Got'înê

    9. For the keyword T3-Adjust , pertaining to federal Schedule 11 (Federal Income Tax):

       11090 Tax adjustments
       11100 Federal recovery tax
       

    10. For the keyword Line-Number in the T3-Adjust group, when the option "Schedule 11A - Donations and Gifts Tax Credit" is selected:

        11126 Donations made to registered charities
        11127 Donations made to a registered university outside Canada
        11128 Donations made to United Nations, and foreign charities
        11117 Donations applied to the deceased's final return
        11121 Total eligible amount of charitable donations
        11123 25% of taxable gains from gifts of capital property
        11124 25% of recapture of CCA on donated depreciable prop.
        11122 Eligible amount of cultural and ecological gifts
        11125 Donations claimed in current year
        

        Please note that the above options were previously listed under "Schedule 11 – Federal Tax".

11. Deleted options

    1. For keyword Trust-Info , pertaining to the T3 Trust Income and Information return:

       Capital gifts received since June 1971
       Trust not continuously residing in Canada
       Property transf. from other trust post Dec. 99
       

    2. For the keywords Dividends and Dividend.t , pertaining to federal form T3NL (Newfoundland and Labrador Tax):

       Actual amount of eligible dividends (paid bef. July 1,2014)

    3. For the keyword ITC , pertaining to federal form T2038 (Investment Tax Credit):

       [6723] ITC at 5% Qualified resource property

    4. For the keyword Override :

       Schedule 5
       Schedule 6
       

DT Max T5013

1. Program certification

   Version 20.05 of DT Max T5013 is certified for paper filing under the following authorization numbers:

   Federal

   T5013-FIN and schedules: RC-16-P001

   Quebec

   TP-600 and schedules: RQSP-1603
   RL-15 slip: FS1515019
   

   DT Max T5013 is also certified for electronic filing under the following authorization numbers:

   Federal: RC-16-P001
   Quebec slips: RQ-16-15-005
   

   Please note that the CRA no longer certifies the T5013 slip and T5013 SUM.

2. Version highlights

   1. New federal partner code 6 for retired partners

      The CRA has added partner code 6 for a partner who is retired but receiving income as described in subsection 96(1.1).

      A retired partner can be either a general or other specified member (silent partner).

   2. Registered charities and registered Canadian amateur athletic associations now allowed as members of a limited partnership

      Registered charities and registered Canadian amateur athletic associations can now be identified as either an individual or a corporation.

   3. Change in taxable amount and dividend tax credit of non-eligible dividends for 2016 and later years

      The federal dividend gross-up for non-eligible dividends paid in 2016 and later years is 17%, and the dividend tax credit is 10.5217% of the grossed up amount.

      The Quebec dividend gross-up for non-eligible dividends paid in 2016 and 2017 is 17%, and the dividend tax credit is 8.2485% of the actual amount of the dividend.

   4. Schedule 8 changes pertaining to CCA Class 43.1 and Class 43.2

      If an asset is added to CCA Class 43.1 or Class 43.2 in the taxation year, the CRA now requires the following information:

      • the code for the type of asset (Asset-Code )
      • the province where the asset is located ( PROVINCE.A ), and
      • the percentage allocated to the asset (Asset-Alloc% ).

      An in-house form has been created to reflect this information. This data will be captured for EFILE purposes.

   5. T661: Increase of pensionable earnings

      Please note that for federal T661 (Scientific Research and Experimental Development (SR&ED) Expenditures Claim), the pensionable earnings for 2017 have increased from $54,900 to $55,300.

3. New forms and related keywords

   Federal

   • RC59X - Cancel Business Consent or Delegated Authority (related keyword: Consent )

     The RC59 has been split into two forms, the RC59 (Business Consent) and the RC59X (Cancel Business Consent or Delegated Authority).

   In-house forms

   • Schedule 8 supplementary - Additional information regarding CCA Class 43.1 and Class 43.2 (related keyword CCA-Class )

   • Quebec Dispositions of Capital Property Worksheet (related keyword: CapitalProp )

   • Quebec Charitable Donations and Other Gifts Worksheet (related keyword: Charity )

4. Revised forms

   Federal

   • T5013-FIN - Partnership Financial Return

     Lines 80 and 81, pertaining to the question Is the partnership a resident of Canada?, have been removed.

     New line 82: Was the partnership a Canadian partnership throughout the fiscal year?

     New line 172: Is the partnership required to file Form T1134 in respect of any foreign affiliates in the fiscal period?

   • Schedule 1 - Net Income (Loss) for Income Tax Purposes

   • Schedule 2 - Charitable Donations, Gifts, and Political Contributions

   • Schedule 5 - Allocation of Salaries and Wages, and Gross Revenue for Multiple Jurisdictions

   • Schedule 6 - Summary of Dispositions of Capital Property

   • Schedule 8 - Capital Cost Allowance (CCA)

   • Schedule 9 - List of Partnerships

   • Schedule 10 - Calculations Relating to Cumulative Eligible Capital

   • Schedule 12 - Resource-Related Deductions

   • Schedule 50 - Partner's Ownership and Account Activity

   • Schedule 52 - Summary Information for Partnerships that Allocated Renounced Expenses to their Members

   • Schedule 141 - Financial Statement Notes Checklist

   • RC59 - Business Consent

     The option for online access has been removed. To get access to your clients' business information using "Represent a Client", go to canada.ca/taxes-representatives and log in.

     Cancellation of authorization has been removed. Use Form RC59X to cancel authorization.

   • T1145 - Agreement to Allocate Assistance for SR&ED Between Persons Not Dealing at Arm's Length

   • T2058 - Election on Disposition of Property by a Partnership to a Taxable Canadian Corporation

   Quebec

   • TP-600 - Partnership Information Return

   • Schedule A - Partners' Interest and At-Risk Amounts

   • Schedule B - Capital Cost Allowance (CCA)

   • Schedule C - Incorporeal Capital Property

   • Schedule D - Member Corporations' Shares of Paid-Up Capital

   • Schedule E - Summary of Certain Information to Enter on RL-15 Slips

   • Schedule F - Net Income for Income Tax Purposes

   • RD-222 - Deduction Respecting Scientific Research and Experiment Development Expenditures

     In Part 3 (Deductible expenditures for the year), a new line 71, Tax credits for R&D granted by Revenu Québec for the year, has been added. Use the keyword Exclud-Exp with the option "SR&ED tax credit granted by RQ for the year [Q71]".

5. New keywords

   1. In the Partnership-Type group , pertaining to the T5013-FIN:

      1. Can-Partnership : Was the partnership a Canadian partnership throughout the fiscal period?

         Use the keyword Can-Partnership to indicate whether or not the partnership a Canadian partnership throughout the fiscal period. The partnership is a Canadian partnership if the members were Canadian residents throughout the fiscal period.

   2. In the CCA-Class group , when the option "Class 43.1 - 30% DB" or "Class 43.2 50% DB" is chosen, pertaining to Schedule 8 supplementary (Additional information regarding CCA Class 43.1 and Class 43.2):

      1. Asset-Code : Type of asset code

         Use the keyword Asset-Code to indicate the type of asset code pertaining to the Additions or ITC-Addition keywords.

      2. PROVINCE.A : Province where the asset is located

         Use the keyword PROVINCE.A to indicate the province where the asset is located pertaining to the Additions or ITC-Addition keywords.

      3. Asset-Alloc% : Percentage allocated to the asset

         Use the keyword Asset-Alloc% to indicate the percentage allocated to the asset pertaining to the Additions or ITC-Addition keywords.

   3. In the CapitalProp group, pertaining to the Quebec RL-15:

      1. Date-Disp.slip : Date of disposition, if available

         Use the keyword Date-Disp.slip to enter the date of disposition. This date will be entered on the RL-15 slip.

   4. In the Partners group, when the keyword Member-Code and the option “6 - Retired partner paid under subsection 96(1.1)” are chosen:

      1. Type.p : Is the retired partner a general or specified partner?

         Use the keyword Type.p to indicate if the retired partner is a general or a specified member who is not a limited partner.

         This information is required for Quebec.

   5. In the Partners group, when the option “Individual” or “Corporation” is chosen, pertaining to Schedule 50 and the T5013 slip:

      1. CHARITY.P : Is this partner a charity or a Canadian amateur athletic association?

         Use the keyword CHARITY.P to indicate if the partner is a registered charity or a registered Canadian athletic association.

      2. Charity-BN : Business number of the charity or amateur athletic association

         Use the keyword Charity-BN to enter the business number of the charity or Canadian amateur athletic association.

   6. In the Partners group, when the option “Individual” is chosen, pertaining to Schedule 50 and the T5013 slip:

      1. CHARITY-NAME : Name of charity or amateur athletic association

         Use the keyword CHARITY-NAME to enter the name of charity or Canadian amateur athletic association.

6. Deleted keywords

   1. Pertaining to RC59 (Business Consent):

      1. TAXYEAR-ACCESS : Fiscal period end date, if not authorizing access to all years

      2. ONLINE-ACCESS : Authorization for online access

7. New options

   1. For the keyword Member-Code , pertaining to Schedule 50, the T5013 slip and the RL-15 slip:

      6 - Retired partner paid under subsection 96(1.1)

   2. For the keyword Type.p , pertaining to the T5013 and RL-15 slip:

      Specified member who is not a limited partner
      General partner
      

   3. For the keyword Charity , pertaining to the Quebec Charitable Donations and Other Gifts Worksheet and the RL-15 slip:

      Donations of Quebec food products
      Gifts of works of art to a Quebec museum (125%)
      Immovable for cultural purposes in Quebec (125%)
      Gift of a work of public art in Quebec (150%)
      

   4. For keyword Asset-Code , pertaining to the federal Schedule 8 supplementary (Additional information regarding CCA Class 43.1 and Class 43.2):

      01 Cogeneration systems
      02 Waste-fuelled electrical generation equipment
      03 Thermal waste electrical generation equipment
      04 Wind energy conversion systems
      05 Small-scale hydro-electric installations
      06 Fuel cell equipment
      07 Photovoltaic equipment
      08 Wave/tidal energy equipment
      09 Geothermal electrical generation equipment
      10 Active solar heating equipment
      11 Ground source heat pump systems
      12 District energy equipment
      13 Waste-fuelled thermal energy equipment
      14 Heat recovery equipment
      15 Landfill gas/digester gas collection equipment
      16 Bio-oil production systems
      17 Biogas production systems
      18 Enhanced combined cycle systems
      19 Expansion engine systems
      20 Gasification equipment
      21 Electric vehicle charging stations
      22 Electrical energy storage
      

   5. For the keyword ELIGIBLE-AM , pertaining to Quebec Schedule E and the RL-15 slip:

      Expenses before March 18, 2016
      Expenses after March 17, 2016
      Special tax in resp. of assist./benefit/advantage
      

   6. For the keyword Expense-Code , pertaining to Quebec Schedule E and the RL-15 slip:

      A11 Exploration - no oil or gas well (Near/Far North)
      A21 Exploration - no oil or gas well (Elsewhere in Qc)
      B11 Exploration - oil or gas well (Near/Far North)
      B21 Exploration - oil or gas well (Elsewhere in Qc)
      

   7. For the keyword Exclud-Exp , pertaining to Quebec form RD-222:

      SR&ED tax credit granted by RQ for the year [Q71]

8. Deleted options

   1. Pertaining to the keyword Actual-Dividend :

      Ordinary dividends paid before 2014

   2. Pertaining to the keyword Eligible-Amt :

      Expenses before June 5, 2014
      Expenses after June 4, 2014