What's new for T1 version 8.21?

DT Max version 8.21 features the T1/TP1 program for tax years 1996 to 2004 and fully supports T1 efile. Installing this version will update your version of DT Max to v8.21.

Known issues fixed in 8.21

Dividends transfer not showing on federal schedule 4
Previous year ITC not included in calculation of Quebec resource deduction
Ontario reduction for disabled dependants not calculated
Entering a negative value from RL-5
Carryforward of unused deduction for eligible tools
HBP carryforward not including year of RRSP withdrawal
No reminder to sign form TP-1012.A in client letter
No reminder to sign form T2202 in client letter

Technical

Due to a technical change, the value set for the option Level 2 - Disclose/request changes - T1013 (Grant power of attorney - MR-69) will be reset to its default with the installation of version 8.21. Therefore, if you had previously unticked this option, you will have to go back to the Tax return option of the user's defaults and untick this box again.

The "ditto" key is now working properly in the Medical keyword group although for the time being, it does not work for the second data entry. However, it is fully operational for the third and subsequent entries.

Forms

All forms previously under review have been updated and are now final.

Ontario income tax

In certain cases, the conversion of the alternative minimum tax (AMT) carryforwards for purposes of Ontario AMT was not done properly by DT Max in 2004 in versions prior to v8.21. If you access a file for the first time in 2004, or if you access a file that you worked on with a prior version in 2004, DT Max will automatically perform the conversion and provide you with appropriate warnings if there are inconsistencies that need to be addressed.

IMPORTANT: If your client has an unused balance of Ontario AMT paid before tax year 2003, you have to add this portion of the amount manually in your client's file in the keyword AMT-CF, under the option Ontario.

As always, we recommend that you review your carryforwards carefully and check the results on the tax return to make sure that they reflect your client's situation.

If you already filed returns with Ontario AMT carryforwards using a prior version, you should recalculate them and compare the results. Please contact our support team to obtain more information on this subject if you filed tax returns for clients in this situation.

Quebec income tax

Information Bulletin 2005-03 of March 11, 2005, refers to changes made to the limit to the deductibility of investment expenses. These changes will have an impact on the adjustment of investment expenses on schedule N for 2004.

Change to the notion of investment expenses
Flow-through shares issued either after a placement made no later than the publication date of this information bulletin or following an application for a preliminary prospectus certificate or prospectus exemption, as the case may be, filed no later than such date, will not be covered by the rules relating to the limitation on the deductibility of investment expenses.

Change to the notion of investment income
Investment income will include taxable net capital gains attributed by a trust to a beneficiary of such trust that are not otherwise taxable capital gains eligible for the capital gains exemption. Second, the notion of investment income will be changed to include the taxable portion of capital gains eligible for the capital gain exemption that exceed the $500 000 threshold.

These changes apply as of March 30, 2004. We will keep you informed of the progress of these new measures and of the procedures to be implemented by Revenue Quebec.