Line 067 - Is the corporation a professional corporation that is a member of a partnership?
Line 067 - Is the corporation a professional corporation that is a member of a partnership?
A professional corporation is a corporation that carries on the professional practice of an accountant, dentist, lawyer, (including a notary in the province of Quebec), medical doctor, veterinarian, or chiropractor.
Billed-basis accounting for professional corporations
For tax years that begin after March 21, 2017, professional corporations are not allowed to use billed-basis accounting anymore. That is, they are no longer permitted to elect to exclude the value of work in progress at the end of a tax year from business income for that year.
As a transitional measure, where a corporation has elected to use billed-basis accounting for its last tax year that begins before March 22, 2017, the inclusion of work in progress is phased into income as follows:
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for the first tax year of the corporation that begins after March 21, 2017, 20% of the lesser of the cost and the fair market value of work in progress will be taken into account for determining the value of inventory held by the business under the ITA
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this rate will increase progressively to reach 100% at the end of the fifth tax year that begins after March 21, 2017
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