What's new for T1/T5013 Internet version 28.12?

The latest DT Max program update is now available for downloading. It features the T1/TP-1 program for the tax years 2013 to 2024 inclusively and fully supports T1/TP-1 EFILE. It also features the fully functional T5013 program for paper filing of the Partnership Information Return (T5013 forms) for fiscal periods ending from 2016 to 2024, and for electronic filing of the Partnership Information Return (T5013 forms) only for fiscal periods ending in 2024 and later (see our EFILE setup section below for details). Installing this version will update your version of DT Max to 28.12.

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

In this version...

DT Max T1

1. Version highlights
   1. Short-term rentals vs Form TP-128
2. Preliminary status advisory - Important notice
3. Revised forms
4. New options
5. Preliminary status advisory

DT Max T5013

1. Mandatory efiling criteria - Reminder
2. Program certification
3. EFILE setup
   1. Federal
   2. Electronic transmission of xml files - Update
4. Version highlights
   1. Increase of the ceiling for CCA for passenger vehicles and zero-emission passenger vehicles
   2. Government of Canada announces deferral in implementation of change to capital gains inclusion rate
5. New forms
6. Revised forms
7. Deleted forms
8. New keywords
9. New options

DT Max T1

1. Version highlights

   1. Short-term rentals vs Form TP-128

      Revenu Québec will not update Form TP-128, Income and Expenses Respecting the Rental of Immovable Property, to incorporate tax changes regarding short-term rentals. When non-compliant rental expenses are reported on federal Form T776, Statement of Real Estate Rentals, corresponding adjustments will be made on Form TP-128.

2. Preliminary status advisory - Important notice

   Please note that the following federal forms should not be sent to the Canada Revenue Agency (CRA), either in paper or electronic format, as they are currently under development or have not yet been finalized by the CRA:

   • T657

   • T691

   • T2048

   • T936

   • T1170

   • T1A

   We kindly ask you to wait until official guidelines are published regarding the use and submission of these forms. Be sure to review our updates regularly.

   The following Quebec forms are currently available in preliminary version:

   • Schedule G

   • TP-726.20.2

   • TP-766.3.4

   • TP-729

   • TP-232.1

   • TP-776.42

   • TP-772

   • TP-1012.A

   • TP-726.7

3. Revised forms

   Federal

   • T1A - Request for Loss Carryback

     • Capital gains deduction for qualifying business transfer (from line 25395), has been removed.

     • The 2024 inclusion rate on line S of Part 5 is now 50%.

   • T657 - Calculation of Capital Gains Deduction

     • In Step 1: Calculate your annual gains limit for 2024, line 18 should be adjusted when there is a claim of capital gains deduction on a qualifying business transfer (QBT) at line 25395 of the return.

   • T2203 - Provincial and Territorial Taxes for Multiple Jurisdictions

     • Line 5 of Part 2 takes the amount from line 22 of Form T1206.

     • Line 11 takes the amount from line 7 of Part 6 of Form T691 when subject to minimum tax.

     • New lines 58315 and 58316 have been added to Part 3 for New Brunswick and Manitoba volunteer firefighters' amount and search and rescue volunteers' amount.

   Quebec

   • TP-729 - Carry-Forward of Net Capital Losses

     • Line 20 in Part 3 now takes the amount on line 139 of the TP-1 return.

   • TP-726.7 - Capital Gains Deduction on Qualified Property

     • To calculate the gains limit for 2024, the amount on line 15 must be adjusted when a capital gains deduction for a qualifying business transfer is claimed on line 291 of the TP-1 return.

   • TPF-1.X - Keying Summary for the Schedules of the Income Tax Return and Forms TP-25-V, TP-274-V, TP-752.PC-V, TP-1029.SA-V, TM-1029.TM-V, TP-1029.61.MD-V and TP-21.4.39-V

     • For Schedule G, lines 125, 159,306, 94.3 to 98, 95.3 to 106, 107.1 and 226 to 292 have been removed.

4. New options

   1. In the TaxReview-For group:

      1. For the keyword Q-Investments :

         Investment fees (excluding RRSP, RRIF, FHSA)?

         Settlement date vs. actual disposition date?

         Dispositions held within an RRSP, RRIF, TFSA?

         Sale of treasury bonds as c/g instead of interest?

      2. For the keyword Q-General :

         Northern residents deductions?

      3. For the keyword Q-Government :

         RRSP contributions not deducted?

      4. For the keyword Q-Family :

         Child care expenses in 2024?

      5. For the keyword Q-Empl-Expenses :

         Motor vehicle - Logbook?

         Motor vehicle - Zero-emission?

         Business-use-of-home - Use a common room?

         Disproportionate deductions vs employment income?

         Truckers - Meal expenses (simplified method)?

         GST/HST rebate application?

         QST rebate application?

      6. For the keyword Q-Student :

         Scholarships, fellowships, bursaries - Exemption?

      7. For the keyword Q-Senior :

         Claiming the credit for a person living alone?

      8. For the keyword Q-Rental :

         Breakdown between land and building?

      9. For the keyword Q-Business :

         Motor vehicle - Logbook?

         Motor vehicle - Zero-emission?

         Disproportionate deductions vs gross income?

         Loan or advance to shareholders (two years balance sheet)?

      10. For the keyword Q-Deceased :

          Decline in value of an unmatured RRSP/RRIF?

5. Preliminary status advisory

   We wish to inform you that version 28.11 of the program has been released to update the status of certain federal and provincial forms. These forms previously had a "preliminary version" status.

   This update ensures that all forms are up to date and compliant with the latest regulatory requirements.

DT Max T5013

1. Mandatory efiling criteria - Reminder

   For federal slip types filed after 2023, the Canada Revenue Agency (CRA) introduced a reduction in the mandatory electronic filing threshold, from 50 (fifty) to 5 (five). If, for example, a preparer was to paper file 6 (six) or more T5013 slips with the return, then that preparer could be imposed a penalty by the CRA. Revenu Québec has mandated the same requirement with respect to RL slips.

2. Program certification

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

   Federal:

   T5013-FIN and schedules: RC-24-P001

   Quebec:

   TP-600 and schedules: RQSP-2404

   RL-15 slips: FS2415001

   MR-69: RQ-19MR69-201911-SP001

   TP-529: TP-529-202009-SP003

   TP-614: TP-614-202201-SP001

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

   Federal: RC-24-P001

   Quebec slips: RQ-24-15-012

3. EFILE setup

   1. Federal

      Starting in January of 2025, the Canada Revenue Agency transmitter number, which always consisted of MM followed by six numeric entries (i.e. MM123456), has been revised.

      For federal electronic filing purposes, the transmission of T5013 information will now require the entry of your business number or RepID.

      DT Max will continue to default the method of transmission to Internet file transfer (where an account number and web access code is required for filing). We strongly recommend transmitting under our default option.

      Your business number will consist of nine numeric characters or fifteen alphanumeric characters

      Both your business number and Rep ID can be specified within Preferences > Identification > Identification numbers.

      To obtain a new Canada Revenue Agency account number please call Business Enquiries (1-800-959-5525) or refer to Business Registration Online.

      Business Registration Online - What you can do - Canada.ca

      Once entered, please save your changes and perform a recalculation of all applicable files.

      Please note that due to this new Canada Revenue Agency requirement we will no longer support T5013 electronic transmissions prior to 2024.

   2. Electronic transmission of xml files - Update

      Please note the Canada Revenue Agency no longer accepts the electronic transmission of any xml files which includes both a T5013 return and a T5013 slip. As a result of this decision, the applicable option(s) had to be removed from the federal EFILE setup and from the Efile-Federal keyword. As you can no longer transmit an xml file which includes both a T5013 return and a T5013 slip, we recommend that you choose the transmission of eligible original slips within the federal EFILE setup. Once the xml file has been generated and successfully filed, through the CRA's website, you can then transmit the T5013 return. To transmit the T5013 return, you must enter the keyword Efile-Federal within the applicable file, select the option "Yes - T5013 return if eligible" and submit the newly generated xml file. Should you wish to have a copy of both xml files for record-keeping purposes, then please rename your xml file prior to the transmission of the T5013 return.

4. Version highlights

   1. Increase of the ceiling for CCA for passenger vehicles and zero-emission passenger vehicles

      The ceiling for CCA for passenger vehicles will increase from $36,000 to $37,000 effective as of January 1, 2024.

   2. Government of Canada announces deferral in implementation of change to capital gains inclusion rate

      In anticipation of the proposed increase in capital gains inclusion rate from 50% to 66.66%, the following changes were made.

      The CRA has revised Schedule 6, Summary of Dispositions of Capital Property, with lines added to separate capital gains (losses) before June 25, 2024, and after June 24, 2024.

      The T5013 Statement of Partnership Income boxes were added and revised to separate capital gains (losses) and capital reserves with dispositions before June 25, 2024, and after June 24, 2024.

      Revenu Québec has revised the RL-15 Slip: Amounts allocated to the members of a partnership and codes were added to separate capital gains (losses) before June 25, 2024, and after June 24, 2024.

      The in-house Quebec Dispositions of Capital Property Worksheet has been revised to include lines added to separate capital gains (losses) before June 25, 2024, and after June 24, 2024.

      In response to the deferral in implementation of change to the capital gains inclusion rate, both the CRA and Revenu Québec have elected not to revise their forms. Capital gains that were realized before June 25, 2024, and after June 24, 2024, will have the 50% inclusion rate.

5. New forms

   Federal

   • Schedule 75 - Clean Technology Investment Tax Credit (2023 and later tax years)

     • This new schedule is required to claim the new refundable tax credit for capital invested in the adoption and operation of new clean technology (CT) property in Canada from March 28, 2023, to December 31, 2034.

       This investment tax credit (ITC) is a specified percentage of the capital cost of the partnership's clean technology property based on when it was acquired and became available for use:

       – 30% after March 27, 2023, and before 2034

       – 15% for 2034

       – nil after 2034

       For clean technology property prepared or installed after November 27, 2023, the specified percentage will be reduced by 10 percentage points if you do not elect to meet the labour requirements.

       Use the keyword Clean-ITC with the option "Clean technology ITC" in order to enter information regarding this credit.

6. Revised forms

   Federal

   • T5013 FIN - Partnership Financial Return

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

   • Schedule 6 - Summary of Dispositions of Capital Property

     • Part 13 - Qualifying business transfer to employee ownership trust has been added for transfers under section 110.61 of the ITA.

     • In anticipation of the proposed increase in capital gains inclusion rate from 50% to 66.66%, lines have been added to separate gains/losses that occurred before June 25, 2024, and those that occurred after June 24, 2024. Keywords Disp-Date , Date-Disp.cca and Date-Disp.cec are now mandatory keywords to ensure that the lines pertaining to the period before June 25, 2024, or after June 24, 2024, are completed.

     • If Schedule 6 was completed in a previous version, it is strongly recommended you review the data entry.

   • Schedule 12 - Resource-Related Deductions

     • The following lines have been added:

       – Line 170 - Interest and financing expenses included in Canadian exploration expenses

       – Line 270 - Interest and financing expenses included in Canadian development expenses

       – Line 370 - Interest and financing expenses included in Canadian oil and gas property expenses

     • Also, in Part 4 - Foreign resource expenses, column 8, Interest and financing expenses included in column 7, has been added.

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

   • Schedule 58 - Canadian Journalism Labour Tax Credit

     • The maximum annual expenditure per eligible newsroom employee has been increased from $55,000 to $85,000. As of January 1, the rate for qualifying labour expenditure incurred in respect of each eligible newsroom employee of a QJO has been increased from 25% to 35%.

   • Schedule 63 - Return of Fuel Charge Proceeds to Farmers Tax Credit

     • The fuel charge program now includes Nova Scotia, Newfoundland and Labrador, Prince Edward Island and New Brunswick beginning July 1, 2023. Schedule 63 has been revised to include new fields to calculate the credit for the additional designated provinces.

   • Schedule 444 - Eligible Yukon Mining UCC and Eligible Yukon UCC Worksheet for Partnerships

   • T5013 Statement of Partnership Income

     • Boxes were added and revised to separate capital gains and capital reserves with dispositions before June 25, 2024, and after June 24, 2024.

     • The following new boxes were also added:

       – Box 287: Capital gains eligible to the 0% inclusion rate attributable to the period before June 25, 2024

       – Box 288: Capital gains eligible to the 0% inclusion rate attributable to the period after June 24, 2024

       – Box 289: Portion of the capital gain subject to a 100% inclusion rate under subsection 100(1)

       – Box 291: Portion of the capital gain subject to a 100% inclusion rate under subsection 100(1) attributable to the period after June 24, 2024

       – Box 290: Portion of the capital gain subject to a 100% inclusion rate under subsection 100(1) attributable to the period before June 25, 2024

       – Box 265: Current year CT ITC - This is your share of the clean technology (CT) ITC allocated by the partnership

       – Box 266: CT labour requirements addition to tax

       – Box 267: CT ITC recapture

       – Box 258: Interest and financing expenses included in Canadian exploration expenses

       – Box 259: Interest and financing expenses included in Canadian development expenses

       – Box 260: Interest and financing expenses in Canadian oil and gas property expenses

       – Box 261: Interest and financing expenses included in foreign resource expenses

   • AUT-01 - Authorize a Representative for Offline Access

   • AUT-01X - Cancel Authorization for a Representative

   Quebec

   • TP-600 - Partnership Information Return

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

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

   • RL-15 - Amounts Allocated to the Members of a Partnership

     • Boxes were added and revised to separate capital gains and capital reserves with dispositions before June 25, 2024, and after June 24, 2024.

   In-house forms

   • Quebec Dispositions of Capital Property Worksheet

     • Lines were added and revised to separate capital gains (losses) with dispositions that occurred before June 25, 2024, and after June 24, 2024.

7. Deleted forms

   Federal

   • Schedule 65 - Air Quality Improvement Tax Credit (2022 and later tax years)

8. New keywords

   1. In the Clean-ITC group, pertaining to federal Schedule 75:

      1. Clean-ITC : Type of clean economy investment tax credit

         Use the keyword Clean-ITC if you wish to claim the Clean technology investment tax credit or the Carbon capture, utilization, and storage investment tax credit.

      2. Labour-Req : Whether you elected to meet the labour requirements

         Use the keyword Labour-Req to indicate if you elected to meet the prevailing wage requirements described in subsection 127.46(3) and the apprenticeship requirements described in subsection 127.46(5).

      3. Requirements : Labour requirements addition to tax

         Use the keyword Requirements to select and enter the wage and apprenticeship requirements.

      4. CCA-Class.cl : CCA class of clean ITC

         Use the keyword CCA-Class.cl to select the appropriate CCA class.

      5. Asset-Code.cl : Clean technology property asset code

         Use the keyword Asset-Code.cl to select appropriate clean technology property asset code.

      6. Date-Available : Available-for-use date

         Use the keyword Date-Available to enter the date the clean technology ITC property became available for use.

      7. Design-Work-Site : Assigned number of designated work site

         Use the keyword Design-Work-Site to assign a number to each designated work site. Keep a record in case the CRA asks to see it later.

      8. Capital-Cost : Capital cost of clean technology property

         Use the keyword Capital-Cost to enter the cost of the clean technology property.

      9. Adjustments.cl : Adjustments to clean technology ITC calculation

         Use the keyword Adjustments.cl to enter adjustments to the clean technology ITC calculation. Include government and non-government assistance that you have received, that you are entitled to receive or that you can reasonably be expected to receive in respect of the property. See subsection 127.45(5) for more information.

      10. Assist-repaid.cl : Assistance repaid

          Use the keyword Assist-repaid.cl to enter assistance repaid. Include government and non-government assistance repaid, or that you have not received and can no longer expect to receive, in respect of the property. See subsection 127.45(7) for more information.

      11. Spec-PercentOV : Specified percentage override

          Use the keyword Spec-PercentOV if you wish to override the specified percentage.

      12. Elect-Labour-Req : Whether electing to meet labour requirements

          Use the keyword Elect-Labour-Req to indicate if the corporation is electing under subsections 127.46(3) and (5) to meet labour requirements for the designated work site.

      13. Proceeds.cl : Proceeds of disposition or fair market value

          Use the keyword Proceeds.cl to enter the proceeds or fair market value.

          If the property is disposed of to a person who deals at arm's length with the corporation, enter the proceeds of disposition. If the property is disposed of to a person who does not deal at arm's length with the corporation, or the property is converted to a non-clean technology use or is exported from Canada, enter the fair market value.

   2. In the Resource group, pertaining to federal Schedule 12

      1. Int-Fin-Expense : Interest and financing expenses

         Use the keyword Int-Fin-Expense to enter interest and financing expenses.

      2. For-Int-Fin-Exp : Foreign interest and financing expenses

         Select the country and enter foreign interest and financing expenses

9. New options

   1. For the keyword CCA-Class.cl , pertaining to federal Schedule 75:

      Class 43.1
      Class 43.2
      Class 56
      

   2. For the keyword Asset-Code.cl , pertaining to federal Schedule 75:

      01 - Electricity generating equipment
      02 - Stationary electric storage equipment
      03 - Solar equip., air-source or ground-source heat pumps
      04 - Non-road zero emission vehicle & charging
      05 - Geothermal equipment
      06 - Concentrated solar energy equipment
      07 - Small modular nuclear reactor
      

   3. For the keyword Requirements , pertaining to federal Schedule 75:

      # of workers paid below the prevailing wage requirements
      # days workers were paid below prevailing wage requirements
      Tot. hrs. labour required apprentice regd. Red Seal trade
      # hours worked by apprentices registered in Red Seal trade

   4. For the keyword CapitalProp , pertaining to federal Schedule 6:

      Qualifying business transfer to an employee ownership trust