Business

The following options are applicable for the keyword Business.

• T776 - Rental

• If self-employed, choose this option to record income and expenses related to a rental property.

  If a member of a partnership, choose this option to enter the net income (loss) reported on box 26 of the T5013 derived from rental income.

• T2042 - Farming (cash-basis)

• If self-employed, choose this option to record income and expenses related to a farming business reporting on a cash-basis.

• T2042 - Farming (accrual-basis)

• If self-employed, choose this option to record income and expenses related to farming business reporting on an accrual-basis.

• T1163/T1164 - Farming (cash-basis)
• T1163/T1164 - Farming (accrual-basis)
• T1273/T1274 harmonized - Farming (cash-basis)
• T1273/T1274 harmonized - Farming (accrual-basis)
• T2121 - Fishing

• If self-employed, choose this option to record income and expenses related to a fishing business.

  If a member of a partnership, choose this option to enter the net income reported on box 43 of the T5013 derived from fishing income.

• T2125 - Business

• If self-employed, choose this option to record income and expenses related to a business other than a profession, commission, fishing, farming, rental or employment

  If a member of a film shelter and you have received a T1-CP slip or RL-9 slip, enter the net income from that film here.

  If a member of a partnership, choose this option to enter the net income reported on box 35 of the T5013 derived from business income.

• T2125 - Commission

• If self-employed, choose this option to record income and expenses related to commission business income.

  If a member of a partnership, choose this option to enter the net income reported on box 39 of the T5013 derived from commission income.

• NISA Fund 2

Business-Id

Year-Open

If nothing is entered, DT Max will assume that the statements cover a full year.

Year-End.bus

Fish-Boat

This entry is only relevant to fishing businesses.

Vessel-RegNumber

Street.bus

If you wish to enter an appartment number on form TP-128, enter "apt" after the address followed by the apartment number.

Apartment.bus

City.bu

Province.bu

PostCode.bu

Phone-Days

Phone-Evenings

Fax-Number

Product.bus

Main-Species

NAICS

A complete list of NAICS codes is available here.

Ownership.l

(See the keyword Labour-Costs).

The following options are applicable for the keyword Ownership.l.

• Sole proprietorship
• Co-ownership
• Partnership
• Trust

Trust-Id

Account-Number.b

Que-Ident-Number

Partnership-BN

The partnership business number consists of 9 digits.

It appears on the T5013.

Bus-PINQ

The PIN consists of 16 characters in the format NNNNNNNNNNAANNNN, where "A" is an alphanumeric character and "N" is a numeric character.

TaxShelter

Que-Tax-Shelter

GST-Number

PST-Number

AGRI-PIN

Own-Use-%

If nothing is entered, DT Max will default to 0% personal use.

The percentage applies globally and reduces all expenses at the same rate to obtain the deductible amount.

Owner-%-OV

The percentages attributable to business partners must be entered with Bus-Partner.

Num-Units

Application

The following options are applicable for the keyword Application.

Farm-Operation

Farmstead

This information is relevant in determining whether a commodity is qualifying or not for purposes of the AgriStability and AgriInvest programs .

Farm-Opening

This information is required to determine the number of years of farming as requested on the AgriStability and AgriInvest program statement.

Complete-Cycle

Disaster-circum

Fed-PublicOffice

Farm-Location

Land-Quarter

Land-Section

Land-Township

Land-Range

Land-Meridian

Oper-Combined

Combined-Lastyr

The following options are applicable for the keyword Combined-Lastyr.

OtherOperation

The following options are applicable for the keyword OtherOperation.

Submitting

The following options are applicable for the keyword Submitting.

Statement-A

Use the keyword Statement-A to indicate whether the information for this farm operation should be entered on form T1163/T1273 (Statement A).

The following options are applicable for the keyword Statement-A.

Schedule-Only

For example, if dealing with foreign business income, this will allow you to provide a statement for your foreign business income based on the data included in this group without including it in the calculation of income on the return.

Fisc-Period.

The following options are applicable for the keyword Fisc-Period..

• Fiscal year-end already based on calendar year
• Alternative method

• Choose this method if you have elected to have an off-calendar fiscal period. Additional business income is computed according to ITA S34.1(1). DT Max will calculate the estimated additional income amount based on the stub period (number of days in which the individual carries on the business after the end of the fiscal period, up to and including December 31, 2013/Number of days on which an individual carries on the business that are in the fiscal periods of the business ending in 2013)

  You may override the additional income amount with the keyword Addit-Income. DT Max will carryforward the additional income amount included in income this year.

  DT Max will adjust the additional income for CCA for the purpose of the reserve. If the business is a farming business, reporting income on a cash basis, DT Max will also adjust income for the Optional Inventory Adjustment (OIA) claimed in year. These two adjustments are done automatically for the purpose of determining adjusted additional income, referred to as "Deemed December 31, 2013 Income".

  (ref: ITA S34.1(4)).

  If it is a start-up business or if the individual became a member of a partnership after the year end of the partnership's fiscal period, an individual may elect to include additional income according to ITA S34.1(2).

• December 31 year-end method - 1st fiscal period

• Choose this method if the fiscal year end of the business is converted to December 31 pursuant to S34.2 of the income tax act and this is your first fiscal period.

• December 31 year-end method - 2nd fiscal period

• Choose this method if the fiscal year end of the business is converted to December 31 pursuant to S34.2 of the income tax act and this is second fiscal period.

  DT Max will adjust the net income for the second fiscal period for CCA for the purpose of the reserve. If the business is a farming business, reporting income on a cash basis, DT Max will also adjust income for the Optional Inventory Adjustment (OIA) claimed in the second fiscal period.

  These two adjustments are done automatically for the purpose of determining "December 31, 2013 Income".

  DT Max will carry forward "December 31, 2013 Income" with Addit-Income.

  You may override the amount determined by DT Max with the keyword Addit-Income.

  (ref: ITA S34.2(2)).

• Previous year was final year of operation

SpecifiedImmovable

A specified immovable is an immovable (including a right in such an immovable or an option on such an immovable) held by a specified trust or a partnership of which the specified trust is a member. The immovable must be located in Quebec and used mainly for the purpose of earning gross revenue that constitutes rent.

DT Max will enter any property income derived from the rental of a specified immovable and calculate the income tax payable on that income, at a rate of 5.3%, on Schedule F of the Quebec trust income tax return.

Rental-Info

The following options are applicable for the keyword Rental-Info.

• Main tenant
• Property manager
• Accountant

Name.r

First-Name.r

SIN.r

Id-Number.r

Space-Rented-%

Street.r

City.r

Province.r

PostCode.r

First-Last

The following options are applicable for the keyword First-Last.

• Neither first nor last year of operation
• First year of operation

• This is to indicate that this is the first year of operations for this business. "First Year" will appear on the business income statement and

  DT Max will tick box 33 on form TP-128.

• Last year of operation

• This is to indicate that this is the final year of operations. "Final Year" will appear on the business income statement and DT Max will tick box 32 on form TP-128.

Contact-Person

This only pertains to the AgriStability and AgriInvest programs.

The following options are applicable for the keyword Contact-Person.

• Tax preparer - main address
• Tax preparer - alternate address
• Other contact person
• Do not print

Contact-Name

Name.m

First-Name.m

Street.m

City.m

Province.m

PostCode.m

Phone-Num

Fax-Num

Copy-to-Contact

Jurisdict.bu   

This information will appear on the first page of the federal tax return.

Use [Alt-J] to enter different values for other jurisdictions.

Balance-Sh

The following options are applicable for the keyword Balance-Sh.

• Assets
• Liabilities
• Shareholder's equity
• Inventory
• Movable property
• Immovable property
• Financial institution

Amount.b

The following options are applicable for the keyword Amount.b.

• Accounts receivable
• Other types of accounts receivable
• Total current assets
• Total business assets
• Accounts payable
• Bank loans
• Other loans
• Total current liabilities
• Total long-term liabilities
• Total business liabilities
• Drawings from equity
• Capital contribution to equity

Descript.b

Location.b

Creditor.b

Book-Value.b

PostalCode.b

Commodity

Sales   

DT Max will indicate the total for each commodity as an income item on the relevant line number and as a qualifying or non qualifying sale on the AgriStability and AgriInvest program statement.

The code number and the description will be indicated with the amount on the AgriStability and AgriInvest program statement.

DT Max will determine whether the sale is qualifying or not based on the province of residence or province of main farmstead ( Farmstead), as the case may be.

See Commodity for the commodity list. Use [Alt-J] to enter different values for other jurisdictions.

Purchases   

DT Max will indicate the total for each commodity as an expense item on the relevant line number and as a qualifying or non qualifying purchase on the AgriStability and AgriInvest program statement.

The code number and the description will be indicated with the amount on the AgriStability and AgriInvest program statement.

DT Max will determine whether it is qualifying or not based on the province of residence or province of main farmstead ( Farmstead), as the case may be.

See Commodity for the commodity list.

Use [Alt-J] to enter different values for other jurisdictions.

Program-Pymt-A

Enter the amount of repayment of program benefits as a negative value and indicate the applicable code number. The repayment will be reported as an expense on the T2042 form and AgriStability/AgriInvest statement (section 5: Commodity sales and program payments).

DT Max will determine whether the payment is qualifying or not based on the code number.

Program-Pymt-B

Enter the amount of repayment of program benefits as a negative value and indicate the applicable code number. The repayment will be reported as an expense on the T2042 form and AgriStability/AgriInvest statement (section 5: Commodity sales and program payments).

DT Max will determine whether the payment is qualifying or not based on the code number.

Crop-Income   

The amounts should be entered for each type of crop income as specified on the T2042 form.

You may enter multiple amounts.

The following options are applicable for the keyword Crop-Income.

• Wheat
• Oats
• Barley
• Mixed grains
• Corn
• Canola
• Flaxseed
• Soya beans
• Other grains and oilseeds
• Apples
• Other fruits
• Potatoes
• Vegetables (excluding potatoes)
• Tobacco
• Greenhouse and nursery products
• Forage crops or seeds
• Other crops

LiveStockInc   

The amounts should be entered for each type of livestock income as specified on the T2042 form.

You may enter multiple amounts.

The following options are applicable for the keyword LiveStockInc.

• Cattle sold
• Swine sold
• Poultry sold
• Sheep and lambs sold
• Other animals specialties

Commod-Inc   

The amounts should be entered for each type of commodity income as specified on the T2042 form.

You may enter multiple amounts.

The following options are applicable for the keyword Commod-Inc.

• Milk and cream
• Eggs
• Bees and honey
• Furs
• Maple products
• Wood (including stumpage)
• Other commodities

Oth-Farm-Inc   

The amounts should be entered for each source of other income.

You may enter multiple amounts.

The following options are applicable for the keyword Oth-Farm-Inc.

• Custom or contract work, and machine rentals
• Insurance proceeds
• Patronage dividends
• Dairy subsidies - program payments
• Crop insurance - program payments
• Other subsidies
• Gasoline rebates
• Property tax rebates
• Other rebates
• Livestock insurance proceeds
• Other farming income

Oth-FarmInc   

DT Max will report the income on either the T2042 form or Statement A of the AgriStability and AgriInvest programs.

The numbers in front of the income items represent the AgriStability and AgriInvest code numbers.

The following options are applicable for the keyword Oth-FarmInc.

• Other program payments
• Disaster assistance and program payments
• Resales, rebates / eligible expenses
• Rebates / non-eligible expenses
• Agricultural contract work
• Patronage dividends
• Interest
• Gravel (revenues/losses)
• Trucking
• Resales of commodities purchased
• Leases (gas, oil well, surface, etc.)
• Machine rental
• Other farming income

Income.bus   

The following options are applicable for the keyword Income.bus.

• Gross sales, commissions, or fees
• Professional fees
• GST/HST collected on sales...(Quick Method)
• Sales, commissions, or fees x Quick Method rate
• Gross rental income
• Other income (specify)
• T4 Box 81, Placement or employment agency workers
• T4A Box 020, Self-employed commissions
• T4A Box 048, Fees for services

Fish-Income   

The following options are applicable for the keyword Fish-Income.

• Fish products
• Other marine products
• Grants, credits and rebates
• Subsidies
• Compensation for loss of fishing income or property
• Sharesperson inc. (fishing boat & captain)
• Fishers - Gross income (Income from T4 Box 78)

Other-Income.f   

Discounts   

The following options are applicable for the keyword Discounts.

• GST/QST included in sales
• Discounts & rebates on sales

Inventory.bu   

Please note that this does not refer to the inventory respecting nets for fishermen.

The following options are applicable for the keyword Inventory.bu.

• Inventory - beginning of year

• Enter the opening inventory amount.

• Inventory - end of year

• Enter the closing inventory amount.

• Inventory - beginning of year (FMV)

• Enter the fair market value (FMV) of the opening inventory.

  This is only relevant for a farming business which is reporting income under the cash basis method of accounting. DT Max will carry forward the ending inventory value of this year as next year's opening inventory value. Although this information is not required for tax purposes, it's available for your records.

• Inventory - end of year (FMV)

• Enter the fair market value (FMV) of the ending inventory.

  This is only relevant for a farming business which is reporting income under the cash basis method of accounting.

  The FMV of ending inventory is required to determine the OIA (Optional Inventory Adjustment) amount.

  The maximum claim for OIA is determined by subtracting the MIA (Mandatory Inventory Adjustment) from the FMV of the ending inventory.

  MIA is not calculated by DT Max. This amount must be entered using the keyword InventoryAdj.

  If required, OIA may be overridden using the keyword InventoryAdj.

MIA-Purchased

The mandatory inventory adjustment decreases the net loss if the taxpayer held inventory at the end of the fiscal period. It applies to a farmer (other than the fiscal period in which the farmer has died) using the cash method in computing income from a farming business.

You have to make the MIA if all of the following conditions apply:

• you use the cash method to report your income;
• you have a net loss on line 9899 of Form T2042 (line 9969 of Forms T1163/T1164/T1273/T1274); and
• the taxpayer bought inventory and still had it at the end of the 2013 fiscal period. This does not refer only to inventory bought in 2013. It includes inventory the taxpayer had previously bought and still owned at the end of the 2013 fiscal period.

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

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

Inventory is a group of items that a business holds and intends to consume or sell to its customers. Farm inventory is tangible property that is:

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

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

Purchased inventory is inventory bought and paid for.

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

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

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

Value of purchased inventory

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

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

The following options are applicable for the keyword MIA-Purchased.

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

Amount-PaidPrior

Amount-Paid-Cur

FMV-Inventory

Prior-FixedValue

Cur-Fixed-Value

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

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

Valuing the purchased inventory

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

• the cash cost;
• 70% of the cash cost; or
• any amount between these two amounts.

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

• the cash cost;
• 70% of:
• • the value of the specified animals for MIA purposes as determined at the end of the 2012 fiscal period; plus
  • any amounts you paid in the 2013 fiscal period toward the purchase price; or
  • any amount between these two amounts.

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

InventoryAdj   

The MIA is not calculated or limited automatically by the program. You have to enter this data manually.

These adjustments will then appear on the farming income statement and, in the case of the OIA, will replace the amounts calculated by DT Max.

DT Max will carry forward the OIA claimed this year as OIA-previous year.

The following options are applicable for the keyword InventoryAdj.

• Mandatory inventory adjustment (MIA) - previous year / ov

• Mandatory Inventory Adjustment (MIA) claimed in the previous year.

  This is only relevant for a farming business which is reporting income under the cash basis method of accounting.

  MIA - previous year is deducted from farming income.

  DT Max will carryforward MIA claimed this year as MIA - previous year.

  This amount will only have to be entered by a first time user of DT Max, or if the user wants to change the amount carried forward by DT Max.

  DT Max does not calculate nor optimize the MIA amount. The user must enter this amount.

• Mandatory inventory adjustment (MIA) - current year

• Mandatory Inventory Adjustment (MIA) to claim this year.

  This is only relevant for a farming business which is reporting income under the cash basis method of accounting.

  DT Max does not calculate nor optimize the MIA amount. The user must enter this amount.

  MIA is added to the net farming loss.

  DT Max will carryforward MIA claimed this year as MIA - previous year.

  	+-------------------------------------------------------------+
  |	CONDITIONS FOR MIA (IT-526 (4)):	|
  |	--------------------------------	|
  |		|
  |	1. Farming Loss before MIA & OIA	|
  |	2. Reporting net income under cash basis accounting method.	|
  |	3. Current year purchases are included in ending inventory	|
  |		|
  |	NB: MIA & OIA do not apply in the year of death.	|
  	+-------------------------------------------------------------+

• Optional inventory adjustment (OIA) - previous year / ov

• Optional Inventory Adjustment (OIA) claimed in the previous year.

  This is only relevant for a farming business which is reporting income under the cash basis method of accounting.

  OIA - previous year is deducted from farming income.

  DT Max will carryforward OIA claimed this year as OIA - previous year.

  This amount will only have to be entered by a first time user of DT Max, or if the user wants to change the amount carried forward by DT Max.

• Optional inventory adjustment (OIA) - current year / ov

• Optional Inventory Adjustment (OIA) to be claimed this year.

  This is only relevant for a farming business which is reporting income under the cash basis method of accounting.

  The user must only enter this amount if he/she wants to override the OIA amount calculated by DT Max.

Cost-Sales   

The following options are applicable for the keyword Cost-Sales.

• Purchases - COGS
• Subcontracts - COGS
• Direct wage costs - COGS
• Other costs - COGS

Work-In-Prog   

• accountant
• dentist
• lawyer (including a notary in Quebec)
• medical doctor
• chiropractor
• veterinarian

Generally, the amount of income you enter under Income.bus includes the gross income plus the amount of work-in-progress at the end of the year, minus the amount of work-in-progress at the end of the preceding year.

The following options are applicable for the keyword Work-In-Prog.

• Work in progress - beginning of year

• Enter the amount of work-in-progress at the beginning of the current year (at the end of the preceding year). Use this option only if you make the election to exclude the work-in-progress from income. DT Max will add this amount in the calculation of income from a profession.

• Work in progress - end of year

• Enter the amount of work-in-progress at the end of the current year Use this option only if you make the election to exclude the work-in-progress from income. DT Max will substract this amount in the calculation of income from a profession.

Reserve   

The following options are applicable for the keyword Reserve.

• Reserve for 1971 A/R - beginning of year

• Opening reserve in respect of 1971 receivables

• Reserve for 1971 A/R - end of year

• Ending reserve in respect of 1971 receivables.

• Reserve - goods and services

• Reserve with respect to goods and services per ITA S20(1)(m).

  Example: in case of a reserve that is reasonably anticipated in respect of goods, these goods will have to be delivered after the end of the year; if the reserve is reasonably anticipated in respect of services, these services will have to be rendered after the end of the year.

  Enter the reserve you want to deduct from business income per ITA S20(1)(m). DT Max will deduct this amount as an other expense.

• Reserve - goods & services (previous yr)

• Reserve claimed in the previous year with respect to goods and services per ITA S20(1)(m). DT Max will include this amount as business income this year.

• Reserve - debt forgiveness

• Enter the current year's reserve for to debt forgiveness. DT Max will deduct the amount as other expenses on forms T2125 and TP-80.

• Reserve - debt forgiveness (previous yr)

• Enter the previous year's reserve for debt forgiveness. DT Max will add this amount as other income on forms T2125 and TP-80.

Expenses.bu   

Any number of such business expenses can be entered. These are used to create a Statement of Business Income and Expenses to attach to the tax return.

The following options are applicable for the keyword Expenses.bu.

• Advertising

• Expenses for advertising, including ads in Canadian newspapers and on Canadian television and radio stations. It also include on this line any amount paid as a finder's fee. Certain restrictions apply to the amount of the expense deduct for advertising in a periodical. You can deduct all the expense if your advertising is directed to a Canadian market and the original editorial content in the issue is 80% or more of the total non-advertising content in the issue.

  You can deduct 50% of the expense if your advertising in a periodical is directed to a Canadian market and the original editorial content in the issue is less than 80% of the total non-advertising content in the issue.

  Also, you cannot deduct expenses for advertising directed mainly to a Canadian market when you advertise with a foreign broadcaster.

• Meals expenses

• The maximum amount you can claim for food, beverages, and entertainment expenses is 50% of either the amount you incur or an amount that is reasonable in the circumstances, whichever is less. These limits also apply to the cost of your meals when you travel or go to a convention, conference, or similar event.

  However, special rules can affect your claim for meals in these cases.

• Meals expenses (regular travel - Quebec)

• The deduction of meal expenses (regular travel) incurred in the course of activities related to the business is subject to the 50% limit (or the specified percentage), but not to the ceiling based on sales if the activities take place at a location at least 40 kilometres from the place of business and are usually (that is, on a regular and ongoing basis) carried on at such a distance from the place of business.

• Meals expenses (not subject to the set limits - Quebec)
• Meals expenses (long-haul truck driver in 2012 )

• The amount deductible for food and beverages consumed by a long-haul truck driver during an eligible travel period will be increased from 70% to 75% for expenses incurred in 2010. An eligible travel period is a period of at least 24 continuous hours throughout which the driver is away from the municipality and metropolitan area in which the driver resides (the residential location) and is driving a long-haul truck that transports goods to, or from, a location that is beyond a radius of at least 160 kilometres from the residential location.

• Meals expenses (long-haul truck driver in 2013 )

• Under proposed legislation, the amount deductible for food and beverages consumed by a long-haul truck driver during an eligible travel period will be increased from 75% to 80% for expenses incurred in or after 2011. An eligible travel period is a period of at least 24 continuous hours throughout which the driver is away from the municipality and metropolitan area in which the driver resides (the residential location) and is driving a long-haul truck that transports goods to, or from, a location that is beyond a radius of at least 160 kilometres from the residential location.

• Entertainment expenses

• The maximum amount you can claim for entertainment expenses is 50% of either the amount you incur or an amount that is reasonable in the circumstances, whichever is less.

• Bad debts

• You can deduct an amount for a bad debt if you had determined that an account receivable is a bad debt in the year and you had already included the receivable in income.

• Insurance

• You can deduct all ordinary commercial insurance premiums you incur on any buildings, machinery, and equipment you use in your business. For more information about claiming your motor vehicle insurance costs.

• Interest - short-term & bank charges
• Interest - long-term
• Interest
• Business tax, fees, licences, memberships, & subscriptions

• You can deduct any annual licence fees and business taxes you incur to run your business. You can also deduct annual dues or fees to keep your membership in a trade or commercial association. You cannot deduct club membership dues (including initiation fees) if the main purpose of the club is dining, recreation, or sporting activities.

• Office expenses

• You can deduct the cost of office expenses. These include small items such as pens, pencils, paper clips, stationery, and stamps. Office expenses do not include items such as calculators, filing cabinets, chairs, and desks. These are capital items.

• Supplies

• You can deduct the cost of items used indirectly to provide the business’s goods or services (e.g., drugs and medication used in a veterinary operation, or cleaning supplies used by a plumber).

• Legal fees and related expenses

• Deduct the fees you incurred for external professional advice or services, including consulting fees.

  You can deduct accounting and legal fees you incur to get advice and help in keeping your records. You can also deduct fees you incur for preparing and filing your income tax and GST/HST returns.

  You can deduct accounting or legal fees you paid to have an objection or appeal prepared against an assessment for income tax, Canada Pension Plan or Quebec Pension Plan contributions, or Employment Insurance premiums. However, the full amount of these deductible fees must first be reduced by any reimbursement of these fees that you have received. Report the difference on line 232 of your income tax return. If you received a reimbursement in 2013 for the types of fees that you deducted in a previous year, report the amount you received on line 130 of your 2013 income tax return.

  You cannot deduct legal and other fees you incur to buy a capital property. Instead, add these fees to the cost of the property.

• Professional dues
• Accounting and other professional fees
• Management and administration fees

• You can deduct management and administration fees incurred to operate your business, including bank charges. Do not include on this line employee's salaries, property taxes, or rents paid. You can claim these amounts elsewhere on the appropriate form.

• Rent

• You can deduct rent incurred for property used in your business. For example, you can deduct rent for the land and building where your business is situated.

• Maintenance and repairs

• You can deduct the cost of labour and materials for any minor repairs or maintenance done to property you use to earn income. However, you cannot deduct the value of your own labour. You cannot deduct costs you incur for repairs that are capital in nature. However, you may be able to claim capital cost allowance (CCA).

• Maintenance and repairs (related to the units rented only)
• Salaries, wages and benefits (including employer's contr.)

• You can deduct gross salaries and other benefits you pay to employees.

• Property taxes

• You can deduct property taxes you incurred for property used in your business. For example, you can deduct property taxes for the land and building where your business is situated.

• Travel

• You can deduct travel expenses you incur to earn business and professional income. Travel expenses include public transportation fares, hotel accommodations, and meals.

• Telephone

• You can deduct expenses for telephone if you incurred the expenses to earn income.

• Utilities (light & power)

• You can deduct expenses for utilities, such as gas, oil, electricity, and water, if you incurred the expenses to earn income.

• Fuel costs (except for motor vehicles)

• You can deduct the cost of fuel (including gasoline, diesel, and propane), motor oil, and lubricants used in your business.

• Delivery, freight, and express

• You can deduct the cost of delivery, freight, and express incurred in the year that relates to your business.

• Motor vehicle expenses m (not including CCA)
• Commissions paid
• Convention and training expenses
• Gardening
• Snow removal
• Other expenses (specify)

FishExpenses   

A list of fishing-related expenses is provided when the keyword is used.

Non fishing-specific expenses should be entered as Expenses.

The following options are applicable for the keyword FishExpenses.

• Bait, ice, salt
• Crew shares
• Fuels cost (except for motor vehicles)
• Fishing gear
• Food
• Fishing licences
• Nets and traps
• Repairs - fishing boat
• Repairs - engine
• Repairs - electrical equipment
• Repairs - Insurance recovery

FarmExpenses   

A list of farming-related expenses is provided when the keyword is used.

Non farming-specific expenses should be entered as Expenses.

The following options are applicable for the keyword FarmExpenses.

• Containers and twine
• Fertilizers and lime
• Pesticides (herbicides, insecticides, fungicides)
• Seeds and plants
• Feed, supplements, straw, and bedding
• Livestock purchases
• Veterinary fees, medicine, and breeding fees
• Machinery - repairs, licences, insurance
• Machinery - gasoline, fuel, oil
• Building repairs
• Fence repairs
• Clearing, levelling of land
• Drainage of land
• Crop insurance, GRIP, stabilization premiums
• Custom or contract work, and machinery rental
• Electricity
• Heating fuel
• Insurance program overpayment recapture
• Other insurance
• Interest
• Office expenses
• Legal and accounting fees
• Property taxes
• Rent (land, buildings, and pasture)
• Salaries, wages and benefits
• Motor vehicle expenses (excluding CCA)
• Small tools
• Other farming expenses (specify)

Farm-Expense   

DT Max will report the expenses as eligible on either the T1163 form or the T1273.

The numbers in front of the expense items represent the code for the AgriStability and AgriInvest programs.

Use [Alt-J] to enter different values for other jurisdictions.

Oth-Farm-Exp   

DT Max will report the expenses as non eligible on form T1163 or T1273.

The numbers in front of the income items represent the AgriStability and AgriInvest code numbers.

The following options are applicable for the keyword Oth-Farm-Exp.

• Machinery (repairs, licences, insurance)
• Machinery lease/rental
• Advertising, marketing costs
• Building and fence repairs
• Land clearing and draining
• Contract work, seed cleaning
• Insurance (buildings, livestock)
• Interest (real estate mortgage, other)
• Membership/subscription fees
• Office expenses
• Legal and accounting fees
• Property taxes
• Rent (land, buildings, pastures)
• Non-arm's length salaries
• Motor vehicle expenses
• Small tools
• Soil testing
• Licences/permits
• Telephone
• Quota rental (tobacco, dairy)
• Gravel (expense)
• Purchases of commodities resold
• Motor vehicle interest & leasing costs
• Other (specify)

Exp-%Claim   

The following options are applicable for the keyword Exp-%Claim.

• Advertising

• Expenses for advertising, including ads in Canadian newspapers and on Canadian television and radio stations. It also include on this line any amount paid as a finder's fee. Certain restrictions apply to the amount of the expense deduct for advertising in a periodical. You can deduct all the expense if your advertising is directed to a Canadian market and the original editorial content in the issue is 80% or more of the total non-advertising content in the issue.

  You can deduct 50% of the expense if your advertising in a periodical is directed to a Canadian market and the original editorial content in the issue is less than 80% of the total non-advertising content in the issue.

  Also, you cannot deduct expenses for advertising directed mainly to a Canadian market when you advertise with a foreign broadcaster.

• Meals expenses

• The maximum amount you can claim for food, beverages, and entertainment expenses is 50% of either the amount you incur or an amount that is reasonable in the circumstances, whichever is less. These limits also apply to the cost of your meals when you travel or go to a convention, conference, or similar event.

  However, special rules can affect your claim for meals in these cases.

• Meals expenses (regular travel - Quebec)

• The deduction of meal expenses (regular travel) incurred in the course of activities related to the business is subject to the 50% limit (or the specified percentage), but not to the ceiling based on sales if the activities take place at a location at least 40 kilometres from the place of business and are usually (that is, on a regular and ongoing basis) carried on at such a distance from the place of business.

• Meals expenses (not subject to the set limits - Quebec)
• Meals expenses (long-haul truck driver in 2012 )

• The amount deductible for food and beverages consumed by a long-haul truck driver during an eligible travel period will be increased from 70% to 75% for expenses incurred in 2010. An eligible travel period is a period of at least 24 continuous hours throughout which the driver is away from the municipality and metropolitan area in which the driver resides (the residential location) and is driving a long-haul truck that transports goods to, or from, a location that is beyond a radius of at least 160 kilometres from the residential location.

• Meals expenses (long-haul truck driver in 2013 )

• Under proposed legislation, the amount deductible for food and beverages consumed by a long-haul truck driver during an eligible travel period will be increased from 75% to 80% for expenses incurred in or after 2011. An eligible travel period is a period of at least 24 continuous hours throughout which the driver is away from the municipality and metropolitan area in which the driver resides (the residential location) and is driving a long-haul truck that transports goods to, or from, a location that is beyond a radius of at least 160 kilometres from the residential location.

• Entertainment expenses

• The maximum amount you can claim for entertainment expenses is 50% of either the amount you incur or an amount that is reasonable in the circumstances, whichever is less.

• Bad debts

• You can deduct an amount for a bad debt if you had determined that an account receivable is a bad debt in the year and you had already included the receivable in income.

• Insurance

• You can deduct all ordinary commercial insurance premiums you incur on any buildings, machinery, and equipment you use in your business. For more information about claiming your motor vehicle insurance costs.

• Interest - short-term & bank charges
• Interest - long-term
• Interest
• Business tax, fees, licences, memberships, & subscriptions

• You can deduct any annual licence fees and business taxes you incur to run your business. You can also deduct annual dues or fees to keep your membership in a trade or commercial association. You cannot deduct club membership dues (including initiation fees) if the main purpose of the club is dining, recreation, or sporting activities.

• Office expenses

• You can deduct the cost of office expenses. These include small items such as pens, pencils, paper clips, stationery, and stamps. Office expenses do not include items such as calculators, filing cabinets, chairs, and desks. These are capital items.

• Supplies

• You can deduct the cost of items used indirectly to provide the business’s goods or services (e.g., drugs and medication used in a veterinary operation, or cleaning supplies used by a plumber).

• Legal fees and related expenses

• Deduct the fees you incurred for external professional advice or services, including consulting fees.

  You can deduct accounting and legal fees you incur to get advice and help in keeping your records. You can also deduct fees you incur for preparing and filing your income tax and GST/HST returns.

  You can deduct accounting or legal fees you paid to have an objection or appeal prepared against an assessment for income tax, Canada Pension Plan or Quebec Pension Plan contributions, or Employment Insurance premiums. However, the full amount of these deductible fees must first be reduced by any reimbursement of these fees that you have received. Report the difference on line 232 of your income tax return. If you received a reimbursement in 2013 for the types of fees that you deducted in a previous year, report the amount you received on line 130 of your 2013 income tax return.

  You cannot deduct legal and other fees you incur to buy a capital property. Instead, add these fees to the cost of the property.

• Professional dues
• Accounting and other professional fees
• Management and administration fees

• You can deduct management and administration fees incurred to operate your business, including bank charges. Do not include on this line employee's salaries, property taxes, or rents paid. You can claim these amounts elsewhere on the appropriate form.

• Rent

• You can deduct rent incurred for property used in your business. For example, you can deduct rent for the land and building where your business is situated.

• Maintenance and repairs

• You can deduct the cost of labour and materials for any minor repairs or maintenance done to property you use to earn income. However, you cannot deduct the value of your own labour. You cannot deduct costs you incur for repairs that are capital in nature. However, you may be able to claim capital cost allowance (CCA).

• Salaries, wages and benefits (including employer's contr.)

• You can deduct gross salaries and other benefits you pay to employees.

• Property taxes

• You can deduct property taxes you incurred for property used in your business. For example, you can deduct property taxes for the land and building where your business is situated.

• Travel

• You can deduct travel expenses you incur to earn business and professional income. Travel expenses include public transportation fares, hotel accommodations, and meals.

• Telephone

• You can deduct expenses for telephone if you incurred the expenses to earn income.

• Utilities (light & power)

• You can deduct expenses for utilities, such as gas, oil, electricity, and water, if you incurred the expenses to earn income.

• Fuel costs (except for motor vehicles)

• You can deduct the cost of fuel (including gasoline, diesel, and propane), motor oil, and lubricants used in your business.

• Delivery, freight, and express

• You can deduct the cost of delivery, freight, and express incurred in the year that relates to your business.

• Motor vehicle expenses m (not including CCA)
• Commissions paid
• Convention and training expenses
• Gardening
• Snow removal

Labour-Costs

For a rental property, enter the labour costs incurred during the year.

Report labour costs related to renovations, improvements, maintenance and repair work carried out during a taxation year on commercial premises or a rental building or other business premises located in Quebec. This information is required for Quebec only (form TP-1086.R.23.12).

LabourType

The following options are applicable for the keyword LabourType.

• Do not add as an expense to maintenance & repairs
• Add as an expense to maintenance and repairs

Worker

This is required for completing the prescribed form TP-1086.R.23.12 for Quebec tax purposes (see Labour-Costs).

Address.work

This is required for completing the prescribed form TP-1086.R.23.12 for Quebec tax purposes (see Labour-Costs).

PostCode.wk

This is required for completing the prescribed form TP-1086.R.23.12 for Quebec tax purposes (see Labour-Costs).

SIN-Worker

This is required for completing the prescribed form TP-1086.R.23.12 for Quebec tax purposes (see Labour-Costs).

QST-Worker

This is required for completing the prescribed form TP-1086.R.23.12 for Quebec tax purposes (see Labour-Costs).

Exp%Claim

Interest-Loan

InterestType

The following options are applicable for the keyword InterestType.

Insured

The following options are applicable for the keyword Insured.

SIN-Insured

LastName.ins

FirstName.ins

StreetNumber.ins

StreetName.ins

Apartment.ins

City.ins

Province.ins

The following options are applicable for the keyword Province.ins.

Postal-Code.ins

ForeignPostCode

Telephone.ins

Please note that DT Max will not verify the format of the telephone number; it will accept whatever you enter.

InsuranceCo-Name

Policy-No

Company-StreetNo

Company-Street

Company-Suite

Company-City

Company-Province

The following options are applicable for the keyword Company-Province.

Co-Postal-Code

For-Co-PostCode

Company-PhoneNo

Expense%Claim

Vehicle-Exp

The following options are applicable for the keyword Vehicle-Exp.

• Purchased vehicle
• Leased passenger vehicle
• Leased vehicle other than passenger vehicle

Model.ca

Make.ca

RegistrationNo.

Car-Level

The following options are applicable for the keyword Car-Level.

• Business expense
• Partner expense

Purch-Date

UCC-Open   

Use [Alt-J] to enter different values for other jurisdictions.

CCA-Class.car

Automobiles acquired after June 16, 1987, may have to be added to a separate CCA class if the cost exceeds a specific amount.

The following options are applicable for the keyword CCA-Class.car.

• Class 10 - 30%

• Automobiles, except those you use as a taxi or in a daily rental business, including vans, trucks, tractors, wagons, and trailers. General-purpose electronic data-processing equipment (commonly called computer hardware) and systems software. Under proposed legislative changes of March 23, 2004, computer equipment and systems software will be included in new class 45 and the CCA rate will increase from 30% to 45%. The current rule allowing a separate class election is not available for equipment that qualifies for the 45% rate. However, you may elect to have the current rule apply for equipment that is acquired before 2005.

• Class 10.1 - 30%

• A passenger vehicle (automobiles costing over $30 000); the depreciable cost is limited to $30 000. No recapture or terminal loss occurs on Class 10.1 disposals and half-year CCA is also allowed in the year of a disposal.

Kilometres   

This value is used by DT Max in fixing a percentage of use for business or employment.

The following options are applicable for the keyword Kilometres.

• Kilometres travelled for business or work

• Kilometres travelled in the year for business or employment purposes.

• Total kilometres travelled

• Total kilometres travelled this year.

Expenses.car   

The following options are applicable for the keyword Expenses.car.

• fuel costs
• maintenance and repairs for the year
• Insurance premiums
• Supplementary business insurance
• Licence and registration
• Interest expenses - car
• Interest expenses - other
• Rental fees

• Use this option to enter the short term leasing costs for a motor vehicle. These include, for instance, the costs paid to a car rental company.

• Parking fees
• Other expenses (please specify)

Days-Interest   

If nothing is entered here, DT Max will default to a full year. Use [Alt-J] to enter different values for other jurisdictions.

Leasing-Cost   

The following options are applicable for the keyword Leasing-Cost.

• Total current year lease costs
• Portion current year lease cost (pre GST/HST changes)
• Lease payments already deducted (prior years)

Leasing-Date

The following options are applicable for the keyword Leasing-Date.

• Beginning of leasing contract
• End of leasing contract

List-Price   

Deemed-Interest

Indicate the amount of interest that would have been earned on the portion of the refundable amounts that exceeds $1,000. The refundable amounts must pertain to the leasing of a passenger vehicle and include all of the sums that the lessor is required to refund to the client under the leasing contract (e.g. a deposit the client gave to the lessor). However, refundable amounts do not include refunds or rebates granted under GST or QST legislation. Contact the MRQ to find out the prescribed interest rates in effect during the term of the leasing contract.

Here are some of the rates available:

January 1st, 2000, to March 31, 2000 5% April 1st, 2000, to June 30, 2001 6% July 1st, 2001, to December 31, 2001 5% January 1st, 2002, to March 31, 2002 3% April 1st, 2002, to June 30, 2002 2% July 1st, 2002, to December 31, 2002 3%

Two options are available for this entry:

THIS YEAR

To determine the amount to enter on line 16 of form TP-421.6, calculate the interest at the prescribed rate for the year in question.

THIS YEAR AND PRIOR YEARS

To determine the amount to enter on line 6 of form TP-421.6, calculate the interest at the prescribed rate for all the years since the amount became refundable.

The following options are applicable for the keyword Deemed-Interest.

• This year
• Prior years

Leasing-Reimb

Do not include refunds and rebates granted under GST or QST legislation.

Two options are available:

THIS YEAR

Enter the total reimbursement to which the client is entitled for the year with respect to leasing expenses.

THIS YEAR AND PRIOR YEARS

Enter the total reimbursement to which the client is entitled with respect to leasing expenses, calculated from the day the contract took effect to the end of the year in question.

The following options are applicable for the keyword Leasing-Reimb.

• This year
• Prior years

Leasing-OV   

Additions.db   

The amounts and descriptions entered here will appear on the CCA schedule.

If the addition is not subject to the half-year rule, make the entry in a CCA class specified as not being subject to the half-year rule. Use [Alt-J] to enter different values for other jurisdictions.

Adjust-Curr   

Enter the amount of adjustments to be added or deducted to the capital cost in the year of acquisition.

GST and PST rebates received in the year of acquisition are examples of such adjustments. Use [Alt-J] to enter different values for other jurisdictions.

Adjust-UCC   

Enter the amount of adjustments to be added or deducted.

Adjustments would be necessary, for example, if there was an investment tax credit on a prior year addition, or if an investment tax credit was applied. Use [Alt-J] to enter different values for other jurisdictions.

ACB.cca   

Upon disposition of the depreciable property, remove the ACB from this class. Use [Alt-J] to enter different values for other jurisdictions.

Disposition

Proceeds.cc   

ACB-Disp.cca   

DT Max will calculate the CCA claim, the depreciation recapture, and if the class is liquidated, the terminal loss except for part XVII method.

If the class is liquidated, specify "Yes" with the keyword Liquidate. Use [Alt-J] to enter different values for other jurisdictions.

Exp-Disp.cca   

The amount entered will be deducted from the proceeds of disposition and the net amount will be entered on the CCA schedule to determine the amount of the CCA class reduction. Use [Alt-J] to enter different values for other jurisdictions.

RecapturOV   

Depreciation recapture is calculated for all CCA classes (with the exception of class 10.1) and for the cumulative eligible capital account.

In the year of disposition, there is no depreciation recapture or terminal loss for a class 10.1 asset. Instead, the half-year rule applies and CCA may be claimed on the opening balance of the class at one-half the rate, as is allowed by the income tax rules. Use [Alt-J] to enter different values for other jurisdictions.

TermlossOV   

Terminal loss is calculated for all CCA classes (with the exception of class 10.1) and for the cumulative eligible capital account.

In the year of disposition, there is no depreciation recapture or terminal loss for a class 10.1 asset. Instead, the half-year rule applies and CCA may be claimed on the opening balance of the class at one-half the rate, as is allowed by the income tax rules. Use [Alt-J] to enter different values for other jurisdictions.

Deemed-Disp.cca

On specified dates during the life or existence of a trust, the trust is deemed to have disposed of its capital property. The resulting gains or losses must be reported on the trust's return in the taxation year in which the dispositions are considered to have occurred.

DT Max will calculate the income on federal form T1055 and, if applicable, on Quebec schedule TP-653.

If the trust actually disposes of the property before the end of the taxation year, do not enter this keyword in the group.

The following options are applicable for the keyword Deemed-Disp.cca.

• Death of beneficiary spouse
• 21-year rule
• Migration
• Specified immovable (Quebec)

CalcCapGain.cca

The following options are applicable for the keyword CalcCapGain.cca.

• Calculate capital gain
• Do not calculate capital gain

Cap-GainOV.cca   

Liquidate

See ACB-Disp.cca for details.

HalfYear-CCA

See subsections 1100(2) to (2.4) of the federal Income Tax Act for exceptions to the half-year rule.

If the addition is not subject to the half-year rule, select "NO" with this keyword. The 50% rule does not apply when the available-for-use rules deny a CCA claim until the second tax year after the year you acquire the property.

CCA-Limit   

DT Max will claim the lesser of the limit entered and the maximum allowable claim for the class, calculated on the CCA schedule. Use [Alt-J] to enter different values for other jurisdictions.

CCA-OV   

When this keyword is used, no CCA schedule is generated and you must ensure that all carryforward amounts are correct. Use [Alt-J] to enter different values for other jurisdictions.

CCA-Class

DT Max will allow you to enter separate classes.

Separate classes are allowed for property of the same class relating to separate businesses, and for property of the same class held for different purposes, i.e. earning income from business vs. earning income from property (see federal income tax regulation 1101).

Capital cost allowances are listed by group. This enables DT Max to calculate each CCA group separately and allows you to allocate as much CCA as required to any business or rental property. It also enables DT Max to calculate recapture of CCA and terminal losses, and to allow for separate classes when required.

You must be careful to only use separate classes for separate businesses, or when otherwise required. You should examine your files to make sure that CCA, recapture of CCA and terminal loss have properly been allocated. Ensure that all CCA has been allocated.

DT Max will warn you of any discrepancies that have been detected.

The following options are applicable for the keyword CCA-Class.

• Eligible capital property - other

• Enter cumulative eligible capital balances of separate businesses, other than farm, in separate CCA-Class groups.

• Eligible capital property - farming or fishing

• Enter cumulative eligible capital balances of separate farm businesses in separate CCA-Class groups.

• Class 1 - 4%

• Most buildings bought after 1987, including components such as wiring, plumbing, heating, and cooling systems. Buildings with a cost exceeding $50,000 should be entered in separate classes.

• Class 1 - 6% (after March 18, 2007)

• Other non-residential buildings acquired by a taxpayer after March 18, 2007.

  To be eligible for one of the additional allowances, a building will be required to be placed into a separate class. If the taxpayer forgoes the separate class, the current rate of 4% will apply.

  Natural gas distribution pipelines acquired after March 18, 2007. Natural gas distribution pipelines are pipelines through which natural gas is carried from transmission pipelines to consumers. They include both distribution mains, which run to the edge of a customer's property, and service lines, which run from the edge of the customer's property to the house or building.

• Class 1 - 10% (after March 18, 2007)

• Eligible non-residential buildings acquired after March 18, 2007, used for manufacturing or processing in Canada of goods for sale or lease will be increased to 10%.

  To be eligible for one of the additional allowances, a building will be required to be placed into a separate class. If the taxpayer forgoes the separate class, the current rate of 4% will apply.

  In order to be eligible for the 6% additional allowance, at least 90% of a building (measured by square footage) must be used for the designated purpose at the end of the tax year. Manufacturing and processing buildings that do not meet the 90% use test will be eligible for the additional 2% allowance if at least 90% of the building is used for nonresidential purposes at the end of the tax year.

• Class 2 - 6%

• Electrical generating equipment, pipelines, and plant and equipment used in the production or distribution of electrical energy or gas or in the distribution of water or heat.

• Class 3 - 5%

• Most buildings including components bought after 1978 and before 1988. However, you may have to include part of the cost of additions made after 1987 in class 1. For more details, see Interpretation Bulletin IT-79, Capital Cost Allowance - Buildings or Other Structures. Buildings acquired before 1988 with a cost exceeding $50,000 should be entered in separate classes.

• Class 4 - 6%

• Railway or trolley bus systems.

• Class 5 - 10%

• Pulp mills acquired before 1962.

• Class 6 - 10%

• Frame, log, stucco on frame, galvanized iron, or corrugated metal buildings that do not have any footings below the ground. Class 6 also includes fences and greenhouses. Buildings with a cost exceeding $50,000 should be entered in separate classes.

• Class 7 - 15%

• Canoes, rowboats, and most other vessels and their motors, furniture, and fittings. For more details, see Interpretation Bulletin IT-267, Capital Cost Allowance - Vessels.

• Class 8 - 20%

• Property that you did not include in any other class. Some examples are fixtures, furniture, machinery, photocopiers, refrigeration equipment, telephones, and tools costing $500 or more. Class 8 also includes outdoor advertising signs you bought after 1987. Under proposed legislative changes, Data network infrastructure equipment acquired after March 22, 2004 (usually included in class 8 at 20%) will be included in a new class 46 with a 30% CCA rate.

• Class 8 - 20% (Class 99 - 33 1/3%)

• A drawing, print, engraving, sculpture, painting or other work of art of the same nature by a Canadian artist in order to display it at his place of business.

• Class 9 - 25%

• Aircraft, including furniture or equipment attached to the aircraft, and spare parts.

• Class 10 - 30%

• Automobiles, except those you use as a taxi or in a daily rental business, including vans, trucks, tractors, wagons, and trailers. General-purpose electronic data-processing equipment (commonly called computer hardware) and systems software. Under proposed legislative changes of March 23, 2004, computer equipment and systems software will be included in new class 45 and the CCA rate will increase from 30% to 45%. The current rule allowing a separate class election is not available for equipment that qualifies for the 45% rate. However, you may elect to have the current rule apply for equipment that is acquired before 2005.

• Class 10.1 - 30%

• A passenger vehicle (automobiles costing over $30 000); the depreciable cost is limited to $30 000. No recapture or terminal loss occurs on Class 10.1 disposals and half-year CCA is also allowed in the year of a disposal.

• Class 11 - 35%

• Advertising signs and billboards which are used to earn rental income and were acquired before 1988.

• Class 12 - 100%

• China, cutlery, kitchen utensils that cost under $500, linen, uniforms, dies, jigs, moulds, cutting or shaping parts of a machine, tools and medical or dental instruments that cost under $500, computer software (except systems software), and video cassettes bought after February 15, 1984, that you rent and do not expect to rent to any one person for more than 7 days in a 30-day period.

• Class 13 SL

• Leasehold interest - You can claim CCA on a leasehold interest, but the maximum rate depends on the type of leasehold interest and the terms of the lease. Leasehold improvements are amortized on a straight-line basis over the number of years in the lease term. The minimum amortization period is 5 years and the maximum is 40 years. If the number of years entered for an addition in the Additions.sl keyword is not within this range, DT Max will use the minimum or maximum allowed, as is applicable.

  Separate classes are required for leasehold interests related to buildings erected on leased land.

• Class 14 SL

• Patents, franchises, concessions, or licences for a limited period. Your CCA is whichever of the following amounts is less: 1. capital cost of the property spread out over the life of the property; or 2. UCC of the property of that class at the end of the taxation year.

• Class 15 SL

• Woods assets are depreciated based on the number of cords or board feet cut in the taxation year compared to the undepreciated capital cost of the property.

• Class 16 - 40%

• Taxis, vehicles you use in a daily car-rental business, coin-operated video games or pinball machines acquired after February 15, 1984, and freight trucks acquired after December 6, 1991, that are rated higher than 11,788 kilograms.

• Class 17 - 8%

• Roads, parking lots, sidewalks, airplane runways, storage areas, or similar surface construction.

• Class 18 - 60%

• Pre-May 26/76 motion picture films.

• Class 19 - 50% SL

• Property otherwise included in Class 8 which was acquired between June 14, 1963 and December 31, 1966. The CCA rate is 20% on a declining balance basis for non-residents and 50% on a straight-line basis for Canadian-owned corporations.

• Class 20 - 20% SL

• Certified Class 1- or Class 3-type buildings acquired between June 12, 1963 and March 31, 1967 or approved capital costs under the Area Development Incentives Act.

• Class 21 - 50% SL

• Certified Class 8- or Class 19-type property acquired between June 12, 1963 and March 31, 1967 for use in a certified business or approved capital costs under the Area Development Incentives Act.

• Class 22 - 50%

• Most power-operated, movable equipment you bought before 1988 that you use for excavating, moving, placing, or compacting earth, rock, concrete, or asphalt.

• Class 23 - 100%

• Leasehold interests, licenses and buildings on or with respect to the Montreal or Vancouver Expo sites.

• Class 24 - 50% SL

• Pollution control equipment. The Ontario Current Cost Adjustment is available for purchases of Class 24 and 27 equipment made in or after 1992.

• Class 25 - 100%

• Pre-Oct.23/68 property acquired by Crown or municipally-owned corporations.

• Class 26 - 5%

• Catalysts and pre-May 22/79 deuterium-enriched water.

• Class 27 - 50% SL

• Pollution control equipment. The Ontario Current Cost Adjustment is available for purchases of Class 24 and 27 equipment made in or after 1992.

• Class 28 - 30%

• Pre-1988 mining equipment used for mine expansion and development.

• Class 29 - 50% SL

• Pre-1988 manufacturing or processing equipment. Post-1988 equipment should be included in Class 39 (pre-Feb.26/92) or Class 43 (post-Feb.25/92).

• Class 30 - 40%

• Pre-1988 telecommunications satellites or space crafts.

• Class 31 - 5%

• Class 31 and 32 pre-June 18/87 certified MURB buildings with a cost exceeding $50,000 should be entered in separate classes.

• Class 32 - 10%

• Class 31 and 32 pre-June 18/87 certified MURB buildings with a cost exceeding $50,000 should be entered in separate classes.

• Class 33 - 15%

• Timber resource property.

• Class 34 - 50% SL

• Certified energy conservation or energy-efficient equipment.

• Class 35 - 7%

• Railway cars.

• Class 36 - not supported

• Property acquired by virtue of a lease option agreement at a price less than fair market value when lease rental payments were previously deducted on the property. The excess of the deemed Adjusted Cost Base (see Fed.ITA 13(5.2)) over the purchase price is deemed to be CCA which was previously claimed on the property.

  No CCA can be claimed while the property is in Class 36 but recapture can occur on the property's disposal.

• Class 37 - 15%

• Amusement park land improvements, buildings and equipment.

• Class 38 - 30%

• Most power-operated, movable equipment you bought after 1987 and use for excavating, moving, placing, or compacting earth, rock, concrete, or asphalt.

  You can choose to keep an outdoor advertising sign and any property you would usually include in class 38 in a separate class. To do this, attach a letter to your income return for the year you bought the property. In the letter, list the properties you are including in a separate class.

• Class 39 - 25% (prior to 02-26-92)

• Manufacturing or processing equipment acquired after 1988 and before Feb.26/92. Use Class 43 if the equipment was acquired after Feb.25/92.

  C.C.A. for Class 39 is 35% in 1989, 30% in 1990 and 25% after 1990. DT Max will calculate a prorated CCA rate when the corporation's taxation year straddles the date on which the rate changed.

  The Ontario Current Cost Adjustment is available for purchases of Class 39 manufacturing & processing machinery and equipment made before Jan.1/92.

• Class 40 - 30%

• 1988-1990 acquired powered industrial lift trucks, rental portable tools and general-purpose electronic data processing equipment used in the manufacturing and processing of goods.

• Class 41 - 25%

• Pre-1987 mining operations-related machinery and equipment, gas or oil well equipment and heavy oil processing equipment.

• Class 41.1 - 25%

• Class 41.1 (25 per cent CCA rate) includes certain oil sands property (other than specified oil sands property) acquired after March 18, 2007.

  These separate classes of properties remain eligible for the full accelerated CCA until 2010. Beginning in 2011, the accelerated CCA is phased out and the amount of the additional allowance will be reduced each year, regardless of whether the constraint is the level of project income or the amount of the undepreciated capital cost. The percentage allowed, as accelerated CCA, in each calendar year will be 90% in 2011, 80% in 2012, 60% in 2013 and 30% in 2014 of the amount otherwise allowable as accelerated CCA. No accelerated CCA will be allowed and only the regular 25 per cent CCA rate will apply for assets in this Class after 2014.

• Class 42 - 12%

• Fibre optic cables.

• Class 43 - 30%

• Manufacturing or processing equipment acquired after Feb.25/92.

• Class 43.1 - 30%

• Includes prescribed energy conservation property (CRCE). This class is broadened to include biogas production equipment and distribution equipment acquired on or after February 23, 2005.

• Class 43.2 - 50%

• Includes certain high-efficiency cogeneration systems and renewable energy generation equipment acquired on or after February 23, 2005, and before 2012. This accelerated CCA rate will also apply to biogas production equipment and distribution equipment used in district energy systems that rely on efficient cogeneration, acquired on or after February 23, 2005, and before 2012.

• Class 44 - 25%

• Patents and rights to use patented information.

• Class 45 - 45%

• General-purpose electronic data processing equipment and certain ancillary property acquired after March 22, 2004, other than property that is acquired before 2005 in respect of which a taxpayer elects to have the property included in a separated Class 10.

• Class 46 - 30%

• Data network infrastructure equipment and systems software for that equipment acquired after March 22, 2004 that would otherwise be included in Class 8 because of the default provision in paragraph (i) of that Class. For details on the definition of data network infrastructure equipment, see the note accompanying that new definition in amended subsection 1104(2) of the Regulations.

• Class 47 - 8%

• Includes transmission and distribution equipment and structures (excluding buildings) of a distributor of electrical energy acquired on or after February 23, 2005.

• Class 48 - 15%

• Includes combustion turbines that generate electricity (including associated burners and compressors) for property acquired on or after February 23, 2005. A separate class election (presently available for such equipment eligible for the 8% rate) is eliminated for equipment eligible for the 15% CCA rate (class 48).

• Class 49 - 8%

• Includes transmission pipelines for petroleum, natural gas, or related hydrocarbons, including control and monitoring devices, valves, and other ancillary equipment. The 8% CCA rate for transmission pipelines will apply to equipment acquired on or after February 23, 2005. A separate class election is generally available for eligible equipment acquired on or after February 23, 2005.

• Class 50 - 55% (after March 18, 2007)

• Computer equipment and systems software acquired after March 18, 2007.

• Class 51 - 6% (after March 18, 2007)

• Natural gas distribution pipelines acquired after March 18, 2007. Natural gas distribution pipelines are pipelines through which natural gas is carried from transmission pipelines to consumers. They include both distribution mains, which run to the edge of a customer's property, and service lines, which run from the edge of the customer's property to the house or building.

• Class 52 - 100% (after 27 Jan. 2009 & bef. Feb. 2011)

• Include in Class 52 with a CCA rate of 100% (with no half-year rule) general-purpose electronic data-processing equipment (commonly called computer hardware) and systems software for that equipment, including ancillary data-processing equipment, if acquired after January 27, 2009, and before February 2011. To qualify for this rate, the asset must also:

  • be situated in Canada;
  • not have been used, or acquired for use, for any purpose before it is acquired by the taxpayer; and
  • be acquired by the taxpayer:
    • for use in a business carried on by the taxpayer in Canada or for the purposes of earning income from property situated in Canada; or
    • for lease by the taxpayer to a lessee for use by the lessee in a business carried on by the lessee in Canada or for the purpose of earning income from property situated in Canada.

• Timber limits and cutting rights

• Use this option to enter a timber limit or a right to cut timber from a limit. The allowance (CCA) is generally established on the basis of the quantity of timber cut in the year versus the quantity of timber which the taxpayer has a right to cut. The CRA discusses this deduction and provides guidelines with respect to the tax treatment of timber limits in Interpretation Bulletin IT-481 (Consolidated).

  Rate: Depletion allowance applies.

• Land - non depreciable property

• Land (non-depreciable property) can be entered here or in the CapitalProp group. If the land is entered here, it will print on the CCA schedule but no capital cost allowance, recapture or terminal loss will be calculated on the land.

Description.ca

Purch-Date

Purch-Date.cca

UCC-Open   

Use [Alt-J] to enter different values for other jurisdictions.

Mine-Income   

Class12-Que

Class18-Que

Class18-Ded

A taxpayer may claim a supplementary deduction equal to 85% of the CCA claimed for a taxation year.

The supplementary deduction is not subject to CCA recapture upon disposition of the property.

CCA-Type

The following options are applicable for the keyword CCA-Type.

• Business level (enter full amts - 100%)

• Choose this option to indicate that the CCA pertains to the business. The amount entered under UCCOPEN is 100% attributable to the business. The amount will be claimed at the business level i.e. before the application of the partner's share. If it is a rental property, the CCA will be factored to represent the co-owner's percentage excluding the own-use portion, if any.

• Partner level (enter prorated amounts)

• Choose this option to indicate that the CCA pertains to the partner or co-owner. The UCCOPEN entered is attributable to the partner's share. In other words, the UCCOPEN already represents the partner's share of the amount. The amount will be claimed at the partner or co-owner level and is not factored in any way by the program.

• Business use of home

• Choose this option to indicate that the CCA pertains to a business use of home.

CCA-Factor

This keyword was mainly introduced for motor-vehicle expenses claimed for business purposes. Basically, motor vehicle expenses claimed for business purposes are reported before CCA. According to the government forms replacing the business statements, you were asked to indicate the opening UCC ( UCC-Open) at the percentage allocated to the business. Given that many prefer to have access to the real number that represent the total UCC-Open, additions or dispositions, DT Max has introduced this new keyword in the CCA-Class group. You can enter the total and CCA-Factor, and DT Max will allocate allowable amounts. Or you can ignore this keyword, and enter only the business portion as UCC-Open, additions or dispositions.

If CCA-Factor is used, and there are additions or dispositions in the year, the "Details" section of the CCA schedule will not indicate a personal portion because DT Max does not know the purpose for the CCA-Factor used.

Additions.db   

The amounts and descriptions entered here will appear on the CCA schedule.

If the addition is not subject to the half-year rule, make the entry in a CCA class specified as not being subject to the half-year rule. Use [Alt-J] to enter different values for other jurisdictions.

Additions.sl   

The amounts and descriptions entered will appear on the CCA schedule.

If the addition is not subject to the half-year rule, make the entry in a CCA class specified as not being subject to the half-year rule.

For classes 13 and 14, DT Max will calculate the CCA based on the number of years remaining in the lease term (class 13) or useful life of the asset (class 14) for the additions entered. Next year, the CCA calculated will be carried forward into the Annual-CCA keyword in this group.

For class 13 the minimum amortization period is 5 years and the maximum is 40 years. If the number of years entered for an addition in the Additions.sl keyword is not within this range, DT Max will use the minimum or maximum allowed. Use [Alt-J] to enter different values for other jurisdictions.

Adjust-Curr   

Enter the amount of adjustments to be added or deducted to the capital cost in the year of acquisition.

GST and PST rebates received in the year of acquisition are examples of such adjustments. Use [Alt-J] to enter different values for other jurisdictions.

Adjust-UCC   

Enter the amount of adjustments to be added or deducted.

Adjustments would be necessary, for example, if there was an investment tax credit on a prior year addition, or if an investment tax credit was applied. Use [Alt-J] to enter different values for other jurisdictions.

ACB.cca   

Upon disposition of the depreciable property, remove the ACB from this class. Use [Alt-J] to enter different values for other jurisdictions.

Disposition

Disp-Date.cca

Proceeds.cc   

ACB-Disp.cca   

DT Max will calculate the CCA claim, the depreciation recapture, and if the class is liquidated, the terminal loss except for part XVII method.

If the class is liquidated, specify "Yes" with the keyword Liquidate. Use [Alt-J] to enter different values for other jurisdictions.

Exp-Disp.cca   

The amount entered will be deducted from the proceeds of disposition and the net amount will be entered on the CCA schedule to determine the amount of the CCA class reduction. Use [Alt-J] to enter different values for other jurisdictions.

Bus-Reduct   

This will limit the amount applied automatically by DT Max. Use [Alt-J] to enter different values for other jurisdictions.

RecapturOV   

Depreciation recapture is calculated for all CCA classes (with the exception of class 10.1) and for the cumulative eligible capital account.

In the year of disposition, there is no depreciation recapture or terminal loss for a class 10.1 asset. Instead, the half-year rule applies and CCA may be claimed on the opening balance of the class at one-half the rate, as is allowed by the income tax rules. Use [Alt-J] to enter different values for other jurisdictions.

TermlossOV   

Terminal loss is calculated for all CCA classes (with the exception of class 10.1) and for the cumulative eligible capital account.

In the year of disposition, there is no depreciation recapture or terminal loss for a class 10.1 asset. Instead, the half-year rule applies and CCA may be claimed on the opening balance of the class at one-half the rate, as is allowed by the income tax rules. Use [Alt-J] to enter different values for other jurisdictions.

Deemed-Disp.cca

On specified dates during the life or existence of a trust, the trust is deemed to have disposed of its capital property. The resulting gains or losses must be reported on the trust's return in the taxation year in which the dispositions are considered to have occurred.

DT Max will calculate the income on federal form T1055 and, if applicable, on Quebec schedule TP-653.

If the trust actually disposes of the property before the end of the taxation year, do not enter this keyword in the group.

The following options are applicable for the keyword Deemed-Disp.cca.

• Death of beneficiary spouse
• 21-year rule
• Migration
• Specified immovable (Quebec)

CalcCapGain.cca

The following options are applicable for the keyword CalcCapGain.cca.

• Calculate capital gain
• Do not calculate capital gain

Cap-GainOV.cca   

Liquidate

See ACB-Disp.cca for details.

CECA   

Specify the amount of the CECA claim for the period pre-88 and post-87 to allow for accuracy in DT Max's calculations.

Upon disposition, DT Max will reduce the CEC class balance by 3/4 of the net proceeds of disposition. No reserve is allowed on amounts owing. A bad debt may be deducted at 3/4 of the amount (per subs. 20(4.2)), and a recovery of a bad debt is added back at 3/4 of the amount (per subs. 20(1)(i.1)). You must enter the appropriate amount for the bad debt or recovery amount.

If the CEC class balance is negative upon disposition, the negative amount is deemed to be:

• business income to the extent of the CEC deductions claimed for that particular business, and if there's an excess amount,
• taxable capital gain, i.e. excess amount less 1/2 of CEC deductions claimed before 1988. This deemed taxable capital gain is eligible for the capital gains deduction. After February 22, 1994 it is considered a business gain.

DT Max will calculate the amount added to net income as well as the capital gain resulting from the disposition (prior to February 23, 1994).

Reminder: If the taxpayer has used his capital gain deduction against his deemed taxable capital gain and then subsequently part or all to the proceeds of disposition becomes a bad debt, then 3/4 of the loss is deemed to be a capital loss to the extent of the capital gain deduction used and 3/4 of the recovered amount is deemed to be a taxable capital gain (per subs. 39(11)). You must enter this information accordingly if applicable.

Note: The replacement property rule will allow you to defer the inclusion of the negative amount in income if a replacement property is acquired before the end of the first taxation year immediately following the taxation year in which the eligible capital property (ECP) was disposed of. The user must override DT Max's calculation of the inclusion amount if this rule applies to the taxpayer, by using RecapturOV.

If you have a positive balance upon disposition, then the taxpayer may continue to deduct annually 7% of the remaining balance. DT Max will calculate and claim the CEC amount. However, if the taxpayer ceased to carry on a business in the year, the remaining positive balance in the CEC class results in a terminal loss. To indicate this, enter "Yes" under Liquidate. DT Max will determine and claim the terminal loss deduction.

The deduction must be made in the year the taxpayer ceases to carry on a business unless he has elected to extend the fiscal period of the business (s. 25). If this election has been made, enter "No" under Liquidate.

The following options are applicable for the keyword CECA.

• CECA after 1987
• CECA prior to 1988

Annual-CCA   

This is only relevant for straight line classes. Use [Alt-J] to enter different values for other jurisdictions.

HalfYear-CCA

See subsections 1100(2) to (2.4) of the federal Income Tax Act for exceptions to the half-year rule.

If the addition is not subject to the half-year rule, select "NO" with this keyword. The 50% rule does not apply when the available-for-use rules deny a CCA claim until the second tax year after the year you acquire the property.

CCA-Limit   

DT Max will claim the lesser of the limit entered and the maximum allowable claim for the class, calculated on the CCA schedule. Use [Alt-J] to enter different values for other jurisdictions.

CCA-OV   

When this keyword is used, no CCA schedule is generated and you must ensure that all carryforward amounts are correct. Use [Alt-J] to enter different values for other jurisdictions.

RestrictCCA

By default, DT Max will automatically limit the CCA claim on rental property income when the CCA claim would otherwise create or increase a loss. Net rental income before CCA from all rental properties of a sole proprietor or co-owner is the maximum amount of CCA allowed for tax purposes.

If you have interests in a partnership that has rental property income, the partnership may not create or increase the loss of the rental property income. Hence, the partnership's net rental income before CCA is the maximum amount of CCA allowed for the partnership. DT Max will then limit the CCA claim on a partnership per partnership basis.

If you indicate "No" in RestrictCCA, DT Max will not limit the CCA claim automatically. For example, if you have a furnished suite, you can create or increase a rental loss with the furniture. Simply enter "No" under RestrictCCA.

Note: The keyword RestrictCCA simply turns off the automatic limitation applied by DT Max; it does not affect the entry made with the keyword CCA-Limit.

CCA-PartXVII

The following options are applicable for the keyword CCA-PartXVII.

• Class 1 - 4%

• Most buildings bought after 1987, including components such as wiring, plumbing, heating, and cooling systems. Buildings with a cost exceeding $50,000 should be entered in separate classes.

• Class 1 - 6% (after March 18, 2007)

• Other non-residential buildings acquired by a taxpayer after March 18, 2007.

  To be eligible for one of the additional allowances, a building will be required to be placed into a separate class. If the taxpayer forgoes the separate class, the current rate of 4% will apply.

  Natural gas distribution pipelines acquired after March 18, 2007. Natural gas distribution pipelines are pipelines through which natural gas is carried from transmission pipelines to consumers. They include both distribution mains, which run to the edge of a customer's property, and service lines, which run from the edge of the customer's property to the house or building.

• Class 1 - 10% (after March 18, 2007)

• Eligible non-residential buildings acquired after March 18, 2007, used for manufacturing or processing in Canada of goods for sale or lease will be increased to 10%.

  To be eligible for one of the additional allowances, a building will be required to be placed into a separate class. If the taxpayer forgoes the separate class, the current rate of 4% will apply.

  In order to be eligible for the 6% additional allowance, at least 90% of a building (measured by square footage) must be used for the designated purpose at the end of the tax year. Manufacturing and processing buildings that do not meet the 90% use test will be eligible for the additional 2% allowance if at least 90% of the building is used for nonresidential purposes at the end of the tax year.

• Class 2 - 6%

• Electrical generating equipment, pipelines, and plant and equipment used in the production or distribution of electrical energy or gas or in the distribution of water or heat.

• Class 3 - 5%

• Most buildings including components bought after 1978 and before 1988. However, you may have to include part of the cost of additions made after 1987 in class 1. For more details, see Interpretation Bulletin IT-79, Capital Cost Allowance - Buildings or Other Structures. Buildings acquired before 1988 with a cost exceeding $50,000 should be entered in separate classes.

• Class 6 - 10%

• Frame, log, stucco on frame, galvanized iron, or corrugated metal buildings that do not have any footings below the ground. Class 6 also includes fences and greenhouses. Buildings with a cost exceeding $50,000 should be entered in separate classes.

• Class 7 - 15%

• Canoes, rowboats, and most other vessels and their motors, furniture, and fittings. For more details, see Interpretation Bulletin IT-267, Capital Cost Allowance - Vessels.

• Class 8 - 20%

• Property that you did not include in any other class. Some examples are fixtures, furniture, machinery, photocopiers, refrigeration equipment, telephones, and tools costing $500 or more. Class 8 also includes outdoor advertising signs you bought after 1987. Under proposed legislative changes, Data network infrastructure equipment acquired after March 22, 2004 (usually included in class 8 at 20%) will be included in a new class 46 with a 30% CCA rate.

• Class 8 - 20% (Class 99 - 33 1/3%)

• A drawing, print, engraving, sculpture, painting or other work of art of the same nature by a Canadian artist in order to display it at his place of business.

• Class 9 - 25%

• Aircraft, including furniture or equipment attached to the aircraft, and spare parts.

• Class 10 - 30%

• Automobiles, except those you use as a taxi or in a daily rental business, including vans, trucks, tractors, wagons, and trailers. General-purpose electronic data-processing equipment (commonly called computer hardware) and systems software. Under proposed legislative changes of March 23, 2004, computer equipment and systems software will be included in new class 45 and the CCA rate will increase from 30% to 45%. The current rule allowing a separate class election is not available for equipment that qualifies for the 45% rate. However, you may elect to have the current rule apply for equipment that is acquired before 2005.

• Class 16 - 40%

• Taxis, vehicles you use in a daily car-rental business, coin-operated video games or pinball machines acquired after February 15, 1984, and freight trucks acquired after December 6, 1991, that are rated higher than 11,788 kilograms.

• Class 17 - 8%

• Roads, parking lots, sidewalks, airplane runways, storage areas, or similar surface construction.

• Class 51 - 6% (after March 18, 2007)

• Natural gas distribution pipelines acquired after March 18, 2007. Natural gas distribution pipelines are pipelines through which natural gas is carried from transmission pipelines to consumers. They include both distribution mains, which run to the edge of a customer's property, and service lines, which run from the edge of the customer's property to the house or building.

Description.ca

Purch-Date

Purch-Date.cca

Rate

The annual allowance rate is applied each year to the original cost of the asset rather than to the undepreciated balance of cost at year-end.

In the year of disposition of the asset, DT Max will claim the allowance for the number of months of ownership. There is no recapture or terminal loss under Part XVII.

Note: Part XVII is applicable to farmers and fishermen only for assets purchased up to the end of 1971.

Cost

Disposition

Disp-Date.cca

Date-Disp.cc

DT Max will claim the allowance for the number of months during which the trust owned the asset.

There is no recapture or terminal loss under Part XVII.

Liquidate

See ACB-Disp.cca for details.

HalfYear-CCA

See subsections 1100(2) to (2.4) of the federal Income Tax Act for exceptions to the half-year rule.

If the addition is not subject to the half-year rule, select "NO" with this keyword. The 50% rule does not apply when the available-for-use rules deny a CCA claim until the second tax year after the year you acquire the property.

CCA-Limit   

DT Max will claim the lesser of the limit entered and the maximum allowable claim for the class, calculated on the CCA schedule. Use [Alt-J] to enter different values for other jurisdictions.

CCA-OV   

When this keyword is used, no CCA schedule is generated and you must ensure that all carryforward amounts are correct. Use [Alt-J] to enter different values for other jurisdictions.

Prior-CCA

Home-Office

Home-Situation

The following options are applicable for the keyword Home-Situation.

• Regular cases - the 50% limit applies

• In all other cases, the 50% limit applies.

• Special situations - the 50% limit does not apply

• If the taxpayer is in either of the following situations:

  • A portion of the home is used as a private reception residence; or
  • A portion of the home is used to operate a tourist home, bed and breakfast establishment or participating establishment in a hospitality village, and the taxpayers holds a permit (issued under the Tourist Establishments Act) of the appropriate subclass or they are a participant in a hospitality village covered by such a permit.

  In these cases, the 50% limit does not apply.

Home-Off-Exp   

The following options are applicable for the keyword Home-Off-Exp.

• Heat

• You can deduct expenses for heating if you incurred the expenses to earn income.

• Electricity

• You can deduct expenses electricity if you incurred the expenses to earn income.

• Insurance

• You can deduct all ordinary commercial insurance premiums you incur on any buildings, machinery, and equipment you use in your business. For more information about claiming your motor vehicle insurance costs.

• Maintenance and repairs

• You can deduct the cost of labour and materials for any minor repairs or maintenance done to property you use to earn income. However, you cannot deduct the value of your own labour. You cannot deduct costs you incur for repairs that are capital in nature. However, you may be able to claim capital cost allowance (CCA).

• Mortgage interest
• Property taxes

• You can deduct property taxes you incurred for property used in your business. For example, you can deduct property taxes for the land and building where your business is situated.

• Telephone

• You can deduct expenses for telephone if you incurred the expenses to earn income.

• Other expenses (specify)

Home-OthExpQ

Federally, the amount should be entered as "other" home office expense (see Home-Off-Exp) with zero entered for Quebec (using [Alt+J]).

Home-Own-Use

Home-HeatUse

Home-Off-CF   

An entry is only required for new client files and/or to change the amount carried forward by DT Max. Use [Alt-J] to enter different values for other jurisdictions.

Home-LimitOV   

The keyword Home-LimitOV should be used to indicate the eligible amount of home offices expense to be claimed when a partner (of a partnership) is reporting home office expenses on a separate T1163 form.

Generally, DT Max limits home office expenses to the net income of the business. Use [Alt-J] to enter different values for other jurisdictions.

Home-Adj-OV

PartShare-OV

The following options are applicable for the keyword PartShare-OV.

• Gross income from partnership

• Partner's share of partnership gross income as shown in box 29 of the T5013 Supplementary. DT Max will report this amount on line 8124 of the relevant Revenue Canada business statement as gross income.

• Net income from partnership

• Partner's share of partnership net income as shown in box 18 or box 20 of the T5013 Supplementary. DT Max will report this amount on line 8237 of the relevant Revenue Canada business statement as net income (loss) before adjustments. This amount already reflects the partners' share and will not be factored further for the partners' percentage share of ownership. Use Partner-Exp to enter other amounts deductible from your share of partnership income (loss). Use PARTNER-INC to specify other amounts to be added to your share of partnership income (loss). Capital cost allowance claimed by the partner should be specified with the keyword CCA-Type (partner level).

Partner-Inc   

DT Max will report it on the business income schedule below the net income (loss) before adjustments.

Enter the amount of the income and a description.

The following options are applicable for the keyword Partner-Inc.

• GST/HST rebate for partners received in the year
• QST rebate for partners received in the year
• Other partner income (Specify)

Partner-Exp   

DT Max will report these expenses on the business income schedule after the net income (loss) before adjustments.

Enter the amount of the expense and a description.

The following options are applicable for the keyword Partner-Exp.

• Accounting and legal fees
• Advertising and promotion
• Food, beverages, and entertainment
• Lodging
• Parking
• Supplies
• Other expenses (specify)
• Tradesperson's tools expenses (for employees)
• Apprentice mechanic tools expenses (for employees)
• Musical instrument expenses other than CCA
• Artists' employment expenses
• Union, professional, or similar dues
• CCA - musical instruments, aircraft

Adjustments   

The adjustments are deducted from income. If you require an amount to be added to income, you must enter a negative amount.

For farming inventory adjustments, please refer to InventoryAdj for farming businesses using the cash-basis method of accounting.

The following options are applicable for the keyword Adjustments.

• Payments to self included in expenses
• Payments to partners included in expenses
• Cost of saleable goods consumed
• Personal portion of expenses
• Other

• Use this option to enter other adjustments.

  For CAIS, under "cash basis", enter other deductions to be claimed on line 9940 of the T1163 form titled "CAIS account information and statement of farming activities for individuals".

Net-Inc-Opt   

Use this keyword to indicate the desired level of net income for this farming business (optional inventory adjustment). Use [Alt-J] to enter different values for other jurisdictions.

Addit-Income   

This amount is determined by DT Max according to sections 34.1 and 34.2 of the Income Tax Act, and it may be overriden using this keyqord.

The following options are applicable for the keyword Addit-Income.

• Additional business income

• This is the additional business income per S34.1(1) or additional income election per S34.1(2) of the Act in respect of a business carried on by the individual in a taxation year in which the alternative fiscal-period method

  was elected under S249.1(4).

  It is applied on a business-by-business basis.

  DT Max will calculate the estimated additional income amount based on the stub period ( No. of days on which the individual carries on the business after the end of the fiscal period and up to and including December 31, 2013/No. of days on which an individual carries on the business that are in the fiscal periods of the business ending in 2013)

  You may override the additional income amount with this option.

  Note: Sections 34.1(1) and (2) of the Act is not applicable in the year the taxpayer dies, becomes bankrupt, or ceases to

  carry on a business.

• Additional business income - previous year

• This is the additional business income per S34.1(1) or additional income election per S34.1(2) of the Act included into income in the previous year in respect of a business carried on by the individual in which the

  alternative method was elected under S249.1(4).

  DT Max carryforward this amount from the previous year.

QueEnclosedT1139

Bus-Partner

First-Name.m

Street.m

City.m

Province.m

PostCode.m

SIN.m

As of 1996, this entry is for information purposes only and does not appear on the tax return.

Agri-PIN-No

This information is requested on page 5 of the AgriStability/AgriInvest statement for the partnership information.

Id-Number.m

Partner-Hist

Year.n

If the information remains unchanged from year to year, do not enter it for each year. Instead, choose each of the years to which that information applies (the keyword Year.n can be repeated if need be).

If however the information differs from one year to the next, open a new Partner-Hist sub-group to enter the information.

The following options are applicable for the keyword Year.n.

SIN.m

As of 1996, this entry is for information purposes only and does not appear on the tax return.

Agri-PIN-No

This information is requested on page 5 of the AgriStability/AgriInvest statement for the partnership information.

Livestock-Disast

Crop-Disaster

Insur-Contract

Livestock-Inv$

EndInventory.b

YearEndPrice.b

Livestock-Inv

EndInventory.b

Crop-Inventory$

Units.inv

The following options are applicable for the keyword Units.inv.

Acres.inv

Quty-Produced

EndInventory.a

YearEndPrice.a

Crop-Inventory

Units.inv

The following options are applicable for the keyword Units.inv.

Acres.inv

Quty-Produced

EndInventory.a

Other-Acres

The following options are applicable for the keyword Other-Acres.

• Number of unseedable acres (too wet/too dry)
• Number of summerfallow acres
• Number of pasture acres
• Number of wasteland acres

Add-Livestock

OtherLivestock

The following options are applicable for the keyword OtherLivestock.

• Number of females that have birthed
• Number of animal feed days
• Number of animals fed
• Number of KGs produced
• Number of producing hens
• Number sold
• Number of breeding sets
• Number of kg of butterfat/day
• Number of bulls producing
• Number of hives producing
• Number of gallons of bees pollinating
• Number of straws sold
• Number of grams contracted
• Other

Code-Units.oth

PurchaseInputs

End-Value

DeferredIncome

Ending-Value

AccountsPayable

End-Value

NothingToReport

Net-Inc-OV.b   

Note that by proceeding this way, you will not be able to efile because the information required for SFD's (selected financial data) is not entered. Use [Alt-J] to enter different values for other jurisdictions.

Receipts

Lifetime

Rest-Farm-Losses

The following options are applicable for the keyword Rest-Farm-Losses.

• Yes
• No

Country.busf

Tax-Paid.for

Once data is entered, DT Max will calculate the following tax credits:

• federal foreign tax credits (T2209) - one per country
• provincial foreign tax credit (T2036)
• Quebec foreign tax credit for foreign business income

In order for the calculations to be performed properly, you must enter the country of reference in Country.busf.

The foreign tax credits determined on forms T2209, T2036 and TP-772 are calculated on a country-by-country basis. You can override the federal business foreign tax credit with the keyword Foreign-Cr-OV. These overrides will be carried through to the provincial foreign tax credit calculation (T2036 or TP-772 for Quebec).

Tax-Treaty.for

The total treaty-exempt income will be deducted from net income for tax purposes on the tax returns filed.

Perm-Establish

The following options are applicable for the keyword Perm-Establish.

• Yes
• No

Foreign-Tax

Information entered in this group will apply strictly to the country chosen.

Foreign-Bus-CF   

This entry is only required for new client files. Amounts from prior years are carried forward by DT Max.

Enter the country of origin of the credit.

The following options are applicable for the keyword Foreign-Bus-CF.

Foreign-Cr-OV

A separate entry is required for business and non business foreign tax credits.

The following options are applicable for the keyword Foreign-Cr-OV.

• Federal non-business foreign tax credit
• Provincial non-business foreign tax credit
• Provincial non-business foreign tax credit (Qc)
• Federal business foreign tax credit
• Provincial business foreign tax credit

Ded-20(12)-OV

DT Max will enter this amount as other deductions from total income on line 40 of the federal return and on line 70 of the Quebec tax return.