Close

Our Privacy Statement & Cookie Policy

All Thomson Reuters websites use cookies to improve your online experience. They were placed on your computer when you launched this website. You can change your cookie settings through your browser.


Print this pageForward this document  What's new for T2/T5013 Internet version 22.15?

The latest DT Max program update is now available for downloading. It features the T2 program for fiscal periods ending from 2007 to 2019 and fully supports Corporation Internet Filing (T2, CO-17 and AT1). 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 2018. Installing this version will update your version of DT Max to 22.15.

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

In this version...

DT Max T2

  1. Program certification
  2. Version highlights
    1. Known issue fixed in version 22.15: Schedule 510
    2. Federal accelerated investment incentive
    3. Quebec accelerated depreciation of property
    4. Quebec additional capital cost allowance of 30%
    5. Changes affecting the keywords pertaining to the capital cost allowance (CCA) for federal Schedule 8, AT1 Alberta Schedule 13 and Quebec form CO-130.A
    6. Registration fee for the enterprise register (REQ) (Quebec line 441b)
    7. Quebec financial compensation for holders of taxi owner's permits - Tax treatment
  3. Revised forms
  4. New diagnostics
    1. Notes and diagnostics
  5. New keywords
  6. Revised keywords
  7. New options
  8. Revised options

DT Max T5013

  1. Version highlights
    1. Federal accelerated investment incentive
    2. Quebec accelerated depreciation of property
  2. Revised forms
  3. New keywords
  4. New options

 

DT Max T2

  1. Program certification

    For DT Max T2 version 22.15, federal Schedule 8, Capital Cost Allowance (CCA) (2018 and later tax years), received full CRA certification to support the new federal rules regarding the accelerated investment incentive property (AIIP) under the DT38 stamp.

  2. Version highlights

    1. Known issue fixed in version 22.15: Schedule 510

      When carrying forward the Ontario corporate minimum tax (CMT) loss, using the keyword Loss-CF within the CMT-CF keyword group with the option "CMT loss or cr of corp", the program only allowed for the loss to be carried forward from 10 prior years, when it should have allowed for 20 prior years if the CMT loss was earned for tax years that ended after March 22, 2007, and not deducted. This issue has been corrected in version 22.15.

    2. Federal accelerated investment incentive

      In the 2018 Fall Economic Statement, the government introduced an accelerated investment incentive in the form of an enhanced allowance in the first year for capital property that is subject to CCA rules. The accelerated investment incentive will be available for eligible property acquired and available for use after November 20, 2018. These eligible properties will not be subject to the half-year rule and will be entitled to an increase in the capital cost allowance depending on the class.

      Federal Schedule 8 has been modified accordingly as mentioned in the Program certification section. Although the Alberta government has harmonized with the measures announced by the federal government, we were informed that Alberta AT1 Schedule 13 has not yet been modified at this time. However, the applicable changes are reflected in the calculations with this version of DT Max T2.

      Please refer to the New keywords and Revised keywords sections of the What's New to learn more.

    3. Quebec accelerated depreciation of property

      We have been notified by Revenu Québec that Quebec form CO-130.A will not be modified at this time. However, the calculation of the capital cost allowance will be harmonized with the measures announced by the federal government with respect to the above-mentioned accelerated depreciation and has been implemented in this version.

      In addition, the government of Quebec has announced that for qualified intellectual property (Classes 14, 14.1 and 44) and property composed of general-purpose electronic data processing equipment (Class 50) acquired after December 3, 2018, taxpayers may deduct the full cost of acquisition. These changes have also been implemented in this version of DT Max T2.

      Please refer to the New keywords and Revised keywords sections of the What's New to learn more.

    4. Quebec additional capital cost allowance of 30%

      The government of Quebec has introduced an additional capital cost allowance of 30% for property acquired after December 3, 2018, to encourage continued investment in certain qualified intellectual property (Classes 14, 14.1 and 44), clean energy generation equipment (Classes 43.1 and 43.2), general-purpose electronic data processing equipment (Class 50), and manufacturing and processing equipment (Class 53).

      The qualified property must be new at the time of its acquisition and must be entered in a separate class. A new keyword Add-Deduction-QC has been added in CCA-Class group for the user to indicate whether this property is entitled to the additional 30% allowance. The additional CCA of 30% will be calculated on the current year's CCA claimed for the new acquisition and carried forward in the keyword Net-Inc-Ded option "Additional CCA - Data processing or M&P equipment (30%)" within the NetIncome group to be deducted in the following taxation year.

    5. Changes affecting the keywords pertaining to the capital cost allowance (CCA) for federal Schedule 8, AT1 Alberta Schedule 13 and Quebec form CO-130.A

      Pursuant to the introduction of the accelerated investment incentive and the Quebec accelerated depreciation of property, some keywords pertaining to the capital cost allowance have been added while others have been changed:

      There have been quite a few changes involving the new measures concerning the AIIP and as such different keywords have been added depending on the class chosen. As such, we strongly suggest that the user verify the data entry and adjust the keywords as applicable in order to obtain the desired results.

    6. Registration fee for the enterprise register (REQ) (Quebec line 441b)

      The registration fee for the enterprise register (line 441b of the Quebec Corporation Income Tax Return) have been indexed on January 1, 2019, as follows:

      • $90.00 for a corporation or a for-profit legal person, a mutual insurance company or other (formerly $88.00);

      • $41.00 for a cooperative (formerly $40.00);

      • $35.00 for a non-profit legal person (incorporated association), a condominium association or other (formerly $34.00).

    7. Quebec financial compensation for holders of taxi owner's permits - Tax treatment

      In the 2018-2019 Budget Speech delivered on March 27, 2018, the Minister of Finance announced a total of $250 million in financial assistance to compensate holders of taxi owner's permits for the loss in value of their permits.

      If you have one or more of these permits, you received an amount of compensation calculated on the basis of the loss in value determined for your taxi servicing area. Since the compensation is considered a form of government assistance for income tax purposes, you will receive an RL-27 slip for it for 2018. Use the keyword Adjustment within the CCA-Class keyword group to enter the amount received as a negative amount.

      Taxi owner's permits are considered depreciable property. Since the compensation offsets the loss in your permit's value, it reduces both the capital cost of the permit and the undepreciated capital cost (UCC) for the permit's class of property, which is either Class 14.1 or 14, depending on the date of acquisition of the permit.

      Note that reducing the permit's capital cost may increase your capital gain if you sell the permit. Half of the gain will be taxable in the year of the sale.

      Likewise, reducing the UCC will reduce the capital cost allowance (CCA) you can claim in respect of your permit in the future. Also, if the compensation you received is greater than the UCC for the class of property, reducing the UCC may result in CCA recapture at the end of the year you received the compensation.

  3. Revised forms

    Federal:

    • Schedule 8 - Capital Cost Allowance (CCA) (2018 and later tax years)

    • Schedule 17 - Credit Union Deductions (2017 and later tax years)

      In Part 3, Preferred-rate amount at the end of the year, the amount for the number of days in the tax year after 2018 has been removed.

    • T1135 - Foreign Income Verification Statement

      The tick boxes to select the method of filing, Part A - Simplified reporting method or Part B - Detailed reporting method, have been removed.

    • AgriStability and AgriInvest - 2019 Statement A - Corporation/Co-operative and Special Individual

    • T1275 - AgriStability and AgriInvest Programs Additional Information and Adjustment Request (N.B.: No calculation support is provided for this form.)

    • T2054 - Election for a Capital Dividend Under Subsection 83(2)

    • Statement of Real Estate Rentals

    • Worksheet 2 - Calculating your monthly instalment payments for 2019

    • Worksheet 3 - Calculating your quarterly instalment payments for 2019

    • T2WS1 - Calculating estimated tax payable and tax credits for 2019 (N.B.: No calculation support is provided for this form.)

    Quebec:

    • CO-1029.8.36.XM - Tax Credit for the Production of Events or Multimedia Environments Staged Outside Québec

      This form has been modified due to the removal of the $350,000 limit to qualified labour expenses introduced in the 2018 Quebec budget.

      Tick boxes have been added in section 2 to indicate if the application to the SODEC was made before or after the March 17, 2018, Quebec budget. Also, tick boxes referring to applications made in 2014 and 2015 have been removed since they are no longer applicable. As such, changes have been made to the options within the keyword Prod-Info found in the Cred-Film group. Please verify your data and make any applicable adjustments.

    English version is now available for the following forms:

    • CO-1029.8.33.13 - Tax Credit for the Reporting of Tips

    • CO-1029.8.36.5 - Tax Credit for a Design Activity Carried Out by an Outside Consultant

    • CO-1029.8.36.7 - Tax Credit for an In-House Design Activity

    • CO-1029.8.36.DF - Tax Credit for Film Dubbing

    • CO-1029.8.36.IN - Tax Credit for Investment

    • CO-1029.8.36.PT - Tax Credit Relating to Major Digital Transformation Projects

    • CO-1029.8.36.SM - Tax Credit for the Production of Performances

    • CO-1029.8.36.TM - Tax Credit for Multimedia Titles

    • CO-1159.2 - Compensation Tax for Financial Institutions

    In-house forms:

    • Notes and diagnostics page

  4. New diagnostics

    1. Notes and diagnostics

      Quebec:

      1. Quebec - Additional deduction of 30% for Classes 14, 14.1, 43.1, 43.2, 44, 50 and 53

        You have an addition eligible for the Quebec accelerated depreciation.

        In Information Bulletin 2018-9, the Ministère des Finances du Québec indicated that a separate class must be created for property of the same class giving entitlement to the additional deduction of 30%.

        The taxpayer may deduct, in computing his income from a business for the following taxation year, an amount equal to 30% of the amount deducted in computing his income in this taxation year.

        If the particular property is new, acquired after December 3, 2018, and eligible for the additional deduction of 30%, proceed as follows in order for the software to correctly calculate and carry forward the additional deduction:

        1 - create a separate class;

        2 - select the option "Eligible for additional CCA of 30% (deductible next tax yr)" in the keyword Add-Deduction-QC .

  5. New keywords

    1. In the CCA-Class group, pertaining to federal Schedule 8, AT1 Alberta Schedule 13 and Quebec form CO-130.A:

      1. AdditionsYr-AIIP : Accelerated investment incentive property (AIIP) additions - amount and number of months to asset expiry

        For Class 14, DT Max will calculate capital cost allowance based on the number of 12-month periods remaining in the useful life of the asset, including this taxation year, for the additions entered. Next year, the capital cost allowance calculated will be carried forward into the Annual-CCA.n keyword in this group.

      2. ITC-Addition-AIIP : Amount/descr. of accelerated investment incentive property (AIIP) addition qualifying for ITC

        Use ITC-Addition-AIIP to enter current year accelerated investment incentive property additions to this CCA class which qualify for an ITC of the type entered in ITC-Code . Enter accelerated investment incentive property additions that are not qualifying for ITC in the Additions-AIIP keyword.

      3. Additions-AIIP : Accelerated investment incentive property (AIIP) additions after November 20, 2018 - amount and description

        Under the Accelerated Investment Incentive, capital investments will generally be eligible for a first-year deduction for depreciation equal to up to three times the amount that would otherwise apply in the year an asset is put in use. Tripling the current first-year rate will allow businesses to recover the initial cost of their investment more quickly. The Accelerated Investment Incentive will apply to all tangible capital assets, including long-lived investments like buildings. The Accelerated Investment Incentive will also apply to intangible capital assets, such as patents and other intellectual property.

        The Accelerated Investment Incentive will effectively suspend the half-year rule (and equivalent rules for Canadian vessels and Class 13 property) in respect of eligible property. The allowance will then generally be calculated by applying the prescribed CCA rate for a class to one-and-a-half times the net addition to the class for the year. As a result, property currently subject to the half-year rule will, in essence, qualify for an enhanced CCA equal to three times the normal first-year allowance and property not currently subject to the half-year rule will qualify for an enhanced CCA equal to one-and-a-half times the normal first year allowance.

        For example, prior to the introduction of the Accelerated Investment Incentive, a property in Class 8, which has a prescribed rate of 20%, would be eligible for CCA of 10% of the cost of the property in the year it becomes available for use, due to the half-year rule. Under the Accelerated Investment Incentive, the taxpayer will be eligible for CCA of 30% of the cost of the property that is one-and-a-half times the CCA calculated using the prescribed rate of 20% or three times the 10% CCA that could otherwise be claimed in the first year.

        The Income Tax Act and the Income Tax Regulations include a series of rules designed to protect the integrity of the CCA regime and the tax system more broadly. These include rules related to limited partners, specified leasing properties, specified energy properties and rental properties. In certain circumstances, these rules can restrict a CCA deduction, or a loss in respect of such a deduction, that would otherwise be available. These integrity rules will continue to apply.

        Certain additional restrictions will be placed on property that is eligible for the Accelerated Investment Incentive. Property that has been used, or acquired for use, for any purpose before it is acquired by the taxpayer will be eligible for the Accelerated Investment Incentive only if both of the following conditions are met:

        • neither the taxpayer nor a non-arm's-length person previously owned the property; and

        • the property has not been transferred to the taxpayer on a tax-deferred "rollover" basis.

        The Accelerated Investment Incentive will apply to qualifying assets acquired after November 20, 2018. It will be gradually phased out starting in 2024, and no longer in effect for investments put in use after 2027.

        Enter any current year accelerated investment incentive property (AIIP) additions to this CCA class in the Additions-AIIP keyword.

      4. Addition-Car-AIIP : Accelerated investment incentive property (AIIP) addition after November 20, 2018 (before sales tax)

        The accelerated investment incentive property (AIIP) addition of an automobile to Class 10.1 can only be entered once since separate classes are required for Class 10.1 property.

        Enter the cost of the car excluding GST, PST and HST. The amount of GST, PST or HST paid on the cost should be entered in the keyword GSTPSTCost ($30,000 after 2001).

        Under the Accelerated Investment Incentive, capital investments will generally be eligible for a first-year deduction for depreciation equal to up to three times the amount that would otherwise apply in the year an asset is put in use. Tripling the current first-year rate will allow businesses to recover the initial cost of their investment more quickly.

        The Accelerated Investment Incentive will apply to qualifying assets acquired after November 20, 2018. It will be gradually phased out starting in 2024, and no longer in effect for investments put in use after 2027.

      5. Additions-Yr-AIIP : Accelerated investment incentive property after November 20, 2018 - amount and number of months lease/asset expiry

        For Class 13, DT Max will calculate capital cost allowance based on the number of 12-month periods remaining in the lease term, including this taxation year, for the additions entered. Next year, the capital cost allowance calculated will be carried forward into the Annual-CCA.n keyword in this group.

        For Class 13, the minimum amortization period is 5 years and the maximum is 40 years. If the number of months entered for an addition is not within this range, DT Max will use the minimum or maximum allowed.

      6. Assistance.cca : Description and amount of assistance received or receivable during yr for a property, after disposition

        Include all amounts of assistance you received (or were entitled to receive) after the disposition of a depreciable property that would have decreased the capital cost of the property by virtue of paragraph 13(7.1)(f) if received before the disposition.

      7. Repayment.cca : Description and amount of repayment during the year for a property, after disposition

        Include all amounts you have repaid during the year (after the disposition of a particular property with respect to a legally required repayment) of:

        • assistance that would have otherwise increased the capital cost of the property under paragraph 13(7.1)(d); and

        • any legally required repayment of an inducement, assistance or any other amount contemplated in paragraph 12(1)(x) received by the taxpayer that otherwise would have increased the capital cost of the property under paragraph 13(7.4)(b).

      8. GSTPSTReb-AIIP : GST, PST or HST rebate on accelerated investment incentive property (AIIP) addition to deduct from UCC

        The GST, PST or HST rebate on this accelerated investment incentive property (AIIP) addition will be deducted from its cost on Schedule 8.

      9. AIIP : First-year CCA claim on accelerated investment incentive property

        For Class 14, use the keyword AIIP to indicate if you wish to claim 1.5 times the normal first-year CCA claim for federal, Alberta and Quebec jurisdictions or whether you wish to claim 1.5 times the normal first-year CCA claim for federal and Alberta, but the full cost (100%) for Quebec.

        For Quebec purposes, enhancement of the harmonized accelerated investment incentive allows for the immediate full expensing of the cost of qualified intellectual property where the property is acquired after December 3, 2018, and becomes available for use before 2024.

      10. Portion-AIIP-QC : QC portion AIIP additions minus GST/PST/HST reb. (ITC/non-ITC) after Dec. 3, 2018, allowing 100% of cost 1st yr

        For Quebec purposes, enhancement of the harmonized accelerated investment incentive allows for the immediate full expensing of the cost of qualified intellectual property and general-purpose electronic data processing equipment where the property is acquired after December 3, 2018, and becomes available for use before 2024.

        For Classes 14.1, 44 and 50, use the keyword Portion-AIIP-QC to enter the Quebec portion of the accelerated investment incentive property additions minus the GST, PST, HST rebate that have been entered with the keywords Additions-AIIP , ITC-Addition-AIIP , or GSTPSTReb-AIIP that is qualified intellectual property and general-purpose electronic data processing equipment allowing for the full cost of the property to be deductible in the year it is available for use.

    2. In the CCA-Class group, pertaining to Quebec form CO-17.A.1:

      1. Add-Deduction-QC : Additional 30% deduction on CCA amount deducted (Quebec only)

        For Quebec purposes, to encourage continued investment in manufacturing and processing equipment, clean energy generation equipment, general-purpose electronic data processing equipment and certain intellectual property, an additional capital cost allowance of 30% is introduced. This additional capital cost allowance will be permanent.

        The tax legislation will thereby be amended to allow a taxpayer who acquires contemplated property, after the day of publication of Information Bulletin 2018-9, to deduct in computing income from a business for a taxation year, an amount corresponding to 30% of the amount deducted in computing such income, for the previous taxation year, on account of the capital cost allowance for the contemplated property.

        For the purposes of the additional capital cost allowance of 30%, contemplated property will be, on the one hand, a particular property that is:

        • machinery or equipment used in manufacturing or processing, namely, property included in Class 53 of Schedule B to the Regulation respecting the Taxation Act, other than property that had allowed or could have allowed the taxpayer to claim the additional capital cost allowance of 60%, or property acquired after 2025 that is property included in Class 43 of the schedule, but that would have been included in Class 53 had it been acquired in 2025;

        • clean energy generation equipment, namely, property included in Class 43.1 of the schedule or property included in Class 43.2 of the schedule;

        • property composed of general-purpose electronic data processing equipment and systems software for that equipment, namely, property included in Class 50 of the schedule, other than property that had allowed or could have allowed the taxpayer to claim the additional capital cost allowance of 60%.

        The particular property must be new at the time of its acquisition by the taxpayer and not property acquired from a person or partnership with which the taxpayer does not deal at arm's length. Its use must begin within a reasonable time after being acquired and, except in the case of loss or involuntary destruction by fire, theft or water, or a major breakdown, be used primarily in Quebec in the course of carrying on a business for a period of at least 730 consecutive days after the property's use began (hereinafter, "730-day period") by the taxpayer or a person with whom the taxpayer does not deal at arm's length and in the circumstances in which a transfer, amalgamation or winding-up occurred.

        More specifically, if, at any time in the 730-day period, an event occurs that prevents one of the conditions allowing a particular property to be a contemplated property from being met, the particular property will not be a contemplated property.

        For the purposes of the additional capital cost allowance of 30%, contemplated property will be, on the other hand, a qualified intellectual property.

        A separate class will be provided for properties of a same class for which a taxpayer may claim the additional capital cost allowance of 30%.

  6. Revised keywords

    1. In the CCA-Class group, pertaining to federal Schedule 8, AT1 Alberta Schedule 13 and Quebec form CO-130.A for Class 14.1 purposes, the following two keywords were formerly referred to as AdditionAfter2016 and Adjust-After2016 respectively:

      1. Additions.c : Non-accelerated investment incentive property additions after Dec 31, 2016 - amount and description

        Enter any current year non-accelerated investment incentive property additions that occurred after Dec 31, 2016, to this CCA class (class 14.1), indicated in the CCA-Class keyword, in the Additions.c keyword.

        If the addition is not subject to the half-year CCA rule, choose "No" in the HalfYr-CCA keyword in this group.

      2. Adjustment.c : Class 14.1 adjustments after Dec 31, 2016 - amount and description

        The adjustment amount after Dec 31, 2016, entered here will be deducted from (if negative) or added to (if positive) the undepreciated capital cost of this class (Class 14.1) on Schedule 8.

    2. In the CCA-Class group, also pertaining to federal Schedule 8, AT1 Alberta Schedule 13 and Quebec form CO-130.A, the following keyword was revised to indicate that it only applies for non-AIIP additions:

      1. HalfYr-CCA : Half-year CCA applies on non-accelerated investment incentive property additions

        Use HalfYr-CCA to override the application of the half-year rule to current year non-accelerated investment incentive property additions in classes where the half-year rule normally applies (all classes except Classes 14 and 15). See Federal Income Tax Regulations 1100(2) to (2.4) for exceptions to the half-year rule.

    3. In the CCA-Class group, also pertaining to federal Schedule 8, AT1 Alberta Schedule 13 and Quebec form CO-130.A:

      1. Additions : Non-accelerated investment incentive property additions - amount and description

        Enter any current year non-accelerated investment incentive property additions to this CCA class in the Additions keyword.

        If the addition is not subject to the half-year CCA rule, choose "No" in the HalfYr-CCA keyword in this group.

      2. ITC-Addition : Amount/descr. of non-accelerated investment incentive property addition qualifying for ITC

        Use ITC-Addition to enter current year non-accelerated investment incentive property additions to this CCA class which qualify for an ITC of the type entered in ITC-Code . Enter non-qualifying ITC additions in the Additions keyword.

      3. Addition-Car : Non-accelerated investment incentive property (AIIP) addition of car (before sales tax)

        The addition of an automobile to Class 10.1 can only be entered once since separate classes are required for Class 10.1 property.

        Enter the cost of the car excluding GST, PST and HST. The amount of GST, PST or HST paid on the cost should be entered in the keyword GSTPSTCost ($30,000 after 2001).

      4. Additions-Yr : Non-accelerated investment incentive property (AIIP) additions - amount and number of months to lease/asset expiry

        For Classes 13 and 14, DT Max will calculate capital cost allowance based on the number of 12-month periods remaining in the lease term (Class 13) or useful life of the asset (Class 14), including this taxation year, for the additions entered. Next year, the capital cost allowance calculated will be carried forward into the Annual-CCA.n keyword in this group.

        For Class 13, the minimum amortization period is 5 years and the maximum is 40 years. If the number of months entered for an addition in the Additions-Yr keyword is not within this range, DT Max will use the minimum or maximum allowed.

      5. GSTPSTRebate : GST, PST or HST rebate on non-accelerated investment incentive property addition to deduct from UCC

        The GST, PST or HST rebate on this non-accelerated investment incentive property addition will be deducted from its cost on Schedule 8.

      6. Annual-CCA.n : Annual CCA & months remaining in life of asset (CCA)

        Enter the amount of the annual capital cost allowance for assets in the opening balance of this class and the number of months remaining in the life of the asset(s) in Annual-CCA.n . For additions to this class, DT Max will calculate the Annual-CCA.n to carry forward next year based upon the amount (and the number of months remaining in the life of the asset, if applicable) entered in the Additions-Yr and Additions-Yr-AIIP keywords for Class 13 and in the Additions-Yr and AdditionsYr-AIIP keywords for Class 14.

  7. New options

    1. For the keyword Cred-Film , pertaining to Quebec form CO-1029.8.36.XM:

      Application after March 27, 2018

    2. For the keyword AIIP , pertaining to federal Schedule 8, AT1 Alberta Schedule 13 and Quebec form CO-130.A:

      1.5 times normal first-yr CCA for all jurisdictions
      1.5 times normal first-yr CCA Fed & AB/full cost QC (100%)

    3. For the keyword Net-Inc-Ded , pertaining to Quebec form CO-17.A.1:

      Additional CCA - Data processing or M&P equipment (30%)

    4. For the keyword Add-Deduction-QC , also pertaining to Quebec form CO-17.A.1:

      Eligible for additional CCA of 30% (deductible next tax yr)
      Not eligible

  8. Revised options

    1. For the keyword Cred-Film , pertaining to Quebec form CO-1029.8.36.XM, the following option has been revised so that the options "App. bef. 05/06/14 or aft 04/06/14 & work advanced 04/06/14" and "App aft. 31/08/14 or aft. 04/06/14 & work not adv. 04/06/14" will not appear:

      Application before March 28, 2018

 

DT Max T5013

  1. Version highlights

    1. Federal accelerated investment incentive

      In the 2018 Fall Economic Statement, the government introduced an accelerated investment incentive in the form of an enhanced allowance in the first year for capital property that is subject to CCA rules. The accelerated investment incentive will be available for eligible property acquired and available for use after November 20, 2018. These eligible properties will not be subject to the half-year rule and will be entitled to an increase in the capital cost allowance depending on the class.

    2. Quebec accelerated depreciation of property

      Quebec capital cost allowance will be harmonized with the measures announced by the federal government with respect to the above-mentioned accelerated depreciation.

      In addition, the government of Quebec has announced that for qualified intellectual property (Classes 14, 14.1 and 44) and property composed of general-purpose electronic data processing equipment (Class 50) acquired after December 3, 2018, taxpayers may deduct the full cost of acquisition.

      The federal Schedule 8 and Quebec Schedule B have not been modified for these changes. However, the changes are reflected in the calculations.

      For this purpose the following keywords have been added to the CCA-Class group: ITC-Addition-AIIP , Additions-AIIP , Additions-Yr-AIIP , Addition-Car-AIIP , AIIP , Portion-AIIP-QC , AdditionsYr-AIIP , GSTPSTReb-AIIP , Assistance.cca and Repayment.cca . It is strongly suggested that the user verify the data entry and adjust the keywords as applicable in order the obtain the desired results.

  2. Revised forms

    Federal:

    • T1135 - Foreign Income Verification Statement

      Check boxes indicating the filing method, Part A - Simplified reporting method or Part B - Detailed reporting method, have been removed.

  3. New keywords

    1. In the CCA-Class group, pertaining to most CCA classes:

      1. ITC-Addition-AIIP : Amount/descr. of accelerated investment incentive property (AIIP) addition qualifying for ITC

        Use ITC-Addition-AIIP to enter current year accelerated investment incentive property additions to this CCA class which qualify for an ITC of the type entered in ITC-Code . Enter accelerated investment incentive property additions that are not qualifying for ITC in the Additions-AIIP keyword.

      2. Additions-AIIP : Accelerated investment incentive property (AIIP) additions after November 20, 2018 - amount and description

        Under the Accelerated Investment Incentive, capital investments will generally be eligible for a first-year deduction for depreciation equal to up to three times the amount that would otherwise apply in the year an asset is put in use. Tripling the current first-year rate will allow businesses to recover the initial cost of their investment more quickly.

        The Accelerated Investment Incentive will apply to all tangible capital assets, including long-lived investments like buildings. The Accelerated Investment Incentive will also apply to intangible capital assets, such as patents and other intellectual property.

        The Accelerated Investment Incentive will effectively suspend the half-year rule (and equivalent rules for Canadian vessels and Class 13 property) in respect of eligible property. The allowance will then generally be calculated by applying the prescribed CCA rate for a class to one-and-a-half times the net addition to the class for the year. As a result, property currently subject to the half-year rule will, in essence, qualify for an enhanced CCA equal to three times the normal first-year allowance and property not currently subject to the half-year rule will qualify for an enhanced CCA equal to one-and-a-half times the normal first year allowance.

        For example, prior to the introduction of the Accelerated Investment Incentive, a property in Class 8, which has a prescribed rate of 20%, would be eligible for CCA of 10% of the cost of the property in the year it becomes available for use, due to the half-year rule. Under the Accelerated Investment Incentive, the taxpayer will be eligible for CCA of 30% of the cost of the property that is one-and-a-half times the CCA calculated using the prescribed rate of 20% or three times the 10% CCA that could otherwise be claimed in the first year.

        The Income Tax Act and the Income Tax Regulations include a series of rules designed to protect the integrity of the CCA regime and the tax system more broadly. These include rules related to limited partners, specified leasing properties, specified energy properties and rental properties. In certain circumstances, these rules can restrict a CCA deduction, or a loss in respect of such a deduction, that would otherwise be available. These integrity rules will continue to apply.

        Certain additional restrictions will be placed on property that is eligible for the Accelerated Investment Incentive. Property that has been used, or acquired for use, for any purpose before it is acquired by the taxpayer will be eligible for the Accelerated Investment Incentive only if both of the following conditions are met:

        • neither the taxpayer nor a non-arm's-length person previously owned the property; and

        • the property has not been transferred to the taxpayer on a tax-deferred "rollover" basis.

        The Accelerated Investment Incentive will apply to qualifying assets acquired after November 20, 2018. It will be gradually phased out starting in 2024, and no longer in effect for investments put in use after 2027.

        Enter any current year accelerated investment incentive property (AIIP) additions to this CCA class in the Additions-AIIP keyword.

      3. GSTPSTReb-AIIP : GST, PST or HST rebate on accelerated investment incentive property (AIIP) addition to deduct from UCC

        The GST, PST or HST rebate on this accelerated investment incentive property (AIIP) addition will be deducted from its cost on Schedule 8.

      4. Assistance.cca : Description and amount of assistance received or receivable during yr for a property, after disposition

        Include all amounts of assistance you received (or were entitled to receive) after the disposition of a depreciable property that would have decreased the capital cost of the property by virtue of paragraph 13(7.1)(f) if received before the disposition.

      5. Repayment.cca : Description and amount of repayment during the year for a property, after disposition

        Include all amounts you have repaid during the year (after the disposition of a particular property with respect to a legally required repayment) of:

        • assistance that would have otherwise increased the capital cost of the property under paragraph 13(7.1)(d); and

        • any legally required repayment of an inducement, assistance or any other amount contemplated in paragraph 12(1)(x) received by the taxpayer that otherwise would have increased the capital cost of the property under paragraph 13(7.4)(b).

    2. In the CCA-Class group, pertaining to Class 10.1:

      1. Addition-Car-AIIP : Accelerated investment incentive property (AIIP) addition of car to Class 10.1 (before sales tax)

        The accelerated investment incentive property (AIIP) addition of an automobile to Class 10.1 can only be entered once since separate classes are required for Class 10.1 property.

        Enter the cost of the car excluding GST, PST and HST. The amount of GST, PST or HST paid on the cost should be entered in the keyword GSTPSTCost ($30,000 after 2001).

        Under the Accelerated Investment Incentive, capital investments will generally be eligible for a first-year deduction for depreciation equal to up to three times the amount that would otherwise apply in the year an asset is put in use. Tripling the current first-year rate will allow businesses to recover the initial cost of their investment more quickly.

        The Accelerated Investment Incentive will apply to qualifying assets acquired after November 20, 2018. It will be gradually phased out starting in 2024, and no longer in effect for investments put in use after 2027.

    3. In the CCA-Class group, pertaining to Class 13:

      1. Additions-Yr-AIIP : Accelerated investment incentive property (AIIP) additions - amount and number of months to lease term

        For Class 13, DT Max will calculate capital cost allowance based on the number of 12-month periods remaining in the lease term, including this taxation year, for the additions entered. Next year, the capital cost allowance calculated will be carried forward into the Annual-CCA.n keyword in this group.

        For Class 13, the minimum amortization period is 5 years and the maximum is 40 years. If the number of months entered for an addition is not within this range, DT Max will use the minimum or maximum allowed.

    4. In the CCA-Class group, pertaining to Class 14:

      1. AIIP : First-year CCA claim on accelerated investment incentive property

        For Class 14, use the keyword AIIP to indicate if you wish to claim 1.5 times the normal first-year CCA claim for federal and Quebec jurisdictions or whether you wish to claim 1.5 times the normal first-year CCA claim for federal, but the full cost (100%) for Quebec.

        For Quebec purposes, enhancement of the harmonized accelerated investment incentive allows for the immediate full expensing of the cost of qualified intellectual property where the property is acquired after December 3, 2018, and becomes available for use before 2024.

      2. AdditionsYr-AIIP : Accelerated investment incentive property (AIIP) additions - amount and number of months to asset expiry

        For Class 14, DT Max will calculate capital cost allowance based on the number of 12-month periods remaining in the useful life of the asset, including this taxation year, for the additions entered. Next year, the capital cost allowance calculated will be carried forward into the Annual-CCA.n keyword in this group.

    5. In the CCA-Class group, pertaining to Classes 14.1, 40 and 50

      1. Portion-AIIP-QC : QC portion of AIIP additions (ITC/non-ITC) after Dec. 3, 2018, allowing for first-year full expensing of cost

        For Quebec purposes, enhancement of the harmonized accelerated investment incentive allows for the immediate full expensing of the cost of qualified intellectual property and general-purpose electronic data processing equipment where the property is acquired after December 3, 2018, and becomes available for use before 2024.

        For Classes 14.1, 44 and 50, use the keyword Portion-AIIP-QC to enter the Quebec portion of the accelerated investment incentive property additions that have been entered with the keywords Additions-AIIP and/or ITC-Addition-AIIP that is qualified intellectual property and general-purpose electronic data processing equipment allowing for the full cost of the property to be deductible in the year it is available for use.

  4. New options

    1. For the keyword AIIP in the CCA-Class group, pertaining to Class 14:

      1.5 times normal first-yr CCA for Federal & Quebec
      1.5 times normal first-yr CCA Fed./full cost (100%) - QC

 

 

March 20, 2019