Capital-Gain

Use Capital-Gain to enter the type of capital gain. In this way, you open the capital gains group. Enter all the information you have to generate correct calculations and to produce accurate schedules and forms relating to capital gains, losses and deductions.

The February 22, 1994 budget eliminated the $100,000 lifetime capital gain deduction for gains realized on capital property after February 22, 1994.

Usually, you have a capital gain or loss when he or she sells, or is considered to have sold capital property. The following are examples of cases where the taxpayer is considered to have sold property:

• exchange one property for another;
• give property (other than cash) as a gift;
• shares or other securities are converted;
• settle or cancel a debt;
• transfer certain property to a trust;
• the property is expropriated;
• the property is stolen;
• the property is destroyed;
• an option hold to buy or sell property expires;
• a corporation redeems or cancels shares or other securities (will usually be considered to have received a dividend, the amount of which will be shown on a T5 slip);
• change all or part of the property's use;
• leave Canada (see guide T4056, Emigrants and Income Tax); or
• the owner dies (see guide T4011, Preparing Returns for Deceased Persons).

CAPITAL GAINS DEDUCTION
For disposition of qualified farm property or qualified small business corporation shares in 2010 or a previous year.

Note
Any capital gains realized from the disposition of qualified farm property or qualified small business corporation shares, while you were a non-resident of Canada, are not eligible for the capital gains deduction.

You have to be a resident of Canada throughout 2010 to be eligible to claim the capital gains deduction. For the purposes of this deduction, we also consider you to be a resident throughout 2010 if you were a resident of Canada for part of 2010 and throughout 2009 or 2011.

If you have investment income or investment expenses in 2010, complete Form T936, Calculation of Cumulative Net Investment Loss (CNIL) to December 31, 2010, before you complete this form. Form T936 lists what is considered to be investment income and expenses.

What is the capital gains deduction limit?
If you disposed of qualified farm property or qualified small business corporation shares, or disposed of qualified fishing property after May 1, 2006, you may be eligible for the lifetime capital gains exemption. Because you only include 1/2 of a capital gain in your income, your cumulative capital gains deduction is 1/2 of the capital gains exemption.

The total of your capital gains deductions on dispositions from 1985 to March 18, 2007, for all types of capital property, cannot be more than $250,000 (1/2 of the exemption of $500,000). Under proposed changes, the capital gains deduction limit on gains arising from dispositions after March 18, 2007, has increased by $125,000 to $375,000 (1/2 of an increased exemption of $750,000).

Qualified farm property
When you dispose of qualified farm property and have a capital gain, you can claim a capital gains deduction in 2010 that is equal to one of the following amounts, whichever is lowest:

• your annual gains limit for 2010;
• your cumulative gains limit for 2010
• your net taxable capital gains in 2010, from dispositions of qualified farm property after 1984; or
• your maximum capital gains deduction available for 2010.

Qualified small business corporation shares
When you dispose of qualified small business corporation shares and have a capital gain, you can claim a capital gains deduction in 2010 equal to one of the following amounts, whichever is lowest:

• your annual gains limit for 2010, minus any capital gains deduction for qualified farm property claimed in 2010;
• your cumulative gains limit for 2010, minus any capital gains deduction for qualified farm property claimed in 2010;
• your net taxable capital gains in 2010 from dispositions of qualified small business corporation shares after June 17, 1987; or
• your maximum capital gains deduction available for 2010.

There is an election available if you own shares of a qualifying small business corporation that stops being a small business corporation because:

• a class of its shares is listed on a prescribed stock exchange; or
• after 1999, a class of another corporation's shares is listed on a prescribed stock exchange.

This election will allow to report a capital gain on the return and claim the capital gains deduction, even though the shares are not actually sell. The deduction applies to any gains you have on these shares to the date the shares are listed. To make this election, complete Form T2101, Election in Respect of Gains on Shares of a Corporation Becoming Public. This form can be get from the Web site or from a tax services office.

The following options are applicable for the keyword Capital-Gain.

1. Qualified small business corporation shares (QSBCS)

The shares of qualified small business corporations are eligible for the $750,000 super-exemption on capital gains. A loss on the sale of a small business should be entered using the option, ALLOWABLE BUSINESS INVESTMENT LOSS.

A share of a corporation will be considered to be a qualified small business corporation share if all the following conditions are met:

• at the time of sale, it was a share of the capital stock of a small business corporation, and it was owned by the taxpayer, the spouse or common-law partner, or a partnership of which he was a member;
• throughout that part of the 24 months immediately before the share was disposed of, while the share was owned by the taxpayer, a partnership of which he was a member, or a person related to him, it was a share of a Canadian-controlled private corporation and more than 50% of the fair market value of the assets of the corporation were:
• used mainly in an active business carried on primarily in Canada by the Canadian-controlled private corporation, or by a related corporation;
• certain shares or debts of connected corporations; or
• a combination of these two types of assets; and
• throughout the 24 months immediately before the share was disposed of, no one owned the share other than the taxpayer, a partnership of which he was a member, or a person related to him. As a general rule, when a corporation has issued shares after June 13, 1988, either to the taxpayer, to a partnership of which he was a member, or to a person related to him, a special situation exists. It's consider that, immediately before the shares were issued, they were owned by an unrelated person. As a result, to meet the holding-period requirement, the shares cannot have been owned by any person other than tha taxpayer, a partnership of which he was a member, or a person related to him a 24-month period that begins after the shares were issued and that ends when you sold them.

However, this rule does not apply to shares issued:

• as payment for other shares;
• for dispositions of shares after June 17, 1987, as payment of a stock dividend; or
• in connection with a property that the taxpayer, a partnership of which he was a member, or a person related to him disposed of to the corporation that issued the shares. The property disposed of must have consisted of either:
• all or most (90% or more) of the assets used in an active business carried on either by you, the members of the partnership of which you were a member, or the person related to you; or
• an interest in a partnership where all or most (90% or more) of the partnership's assets were used in an active business carried on by the members of the partnership.

2. Qualified farm property (QFP)

The qualified farm property are eligible for the $750,000 super-exemption on capital gains.

A qualified farm property is certain property the taxpayer or the spouse or common-law partner owns. It is also certain property owned by a family-farm partnership in which the taxpayer or the spouse or common-law partner holds an interest.

A qualified farm property includes:

• a share of the capital stock of a family-farm corporation that the taxpayer or the spouse or common-law partner owns;
• an interest in a family-farm partnership that the taxpayer or the spouse or common-law partner owns;
• real property, such as land and buildings; and
• eligible capital property, such as milk and egg quotas.

For more information on what is considered to be qualified farm property, see guide T4003, Farming Income, or guide RC4060, Farming Income and the Agristability/AgriInvest Program.

2. Qualified fishing property (QFiP)

A qualified fishing property are reported in the "Real estate, depreciable property, and other properties" section of Schedule 3 and are eligible on Quebec only for the $750,000 super-exemption on capital gains.

Qualified fishing property is the following property that is:

• a fishing licence,
• an individual quota or
• a fishing boat used in a fishing business.

In this context, the catching of shellfish, crustaceans and marine animals and the harvesting of marine plants are considered to be activities related to a fishing business. Such property must have been held and used by the fishing business for a period of at least 24 months immediately preceding the disposition.

3. Stock, mutual funds & other non depreciable property

Use this option to report a capital gain or loss when the taxpayer sell shares or securities that are not described in any other section of Schedule 3. These include:

• units in a mutual fund trust;
• publicly traded shares;
• shares that qualify as Canadian securities or prescribed securities, if they are not qualified small business corporation shares or qualified family farm corporation shares; and
• shares issued by foreign corporations.

4. Real estate & other depreciable property

Real estate
Real estate includes:

• vacant land;
• rental property (both land and buildings);
• farm property, including both land and buildings (other than qualified farm property); and
• commercial and industrial land and buildings.

For each real property you sold in 2010 that includes land and a building, you must:

• determine how much of the selling price relates to the land and how much is for the building; and
• report the sale of the land and building separately on Schedule 3.

Depreciable property
You may have a capital gain on a disposition of a depreciable property. In addition, certain rules on capital cost allowance (CCA) may require that you add a recapture of CCA to the income or to allow a claim as a terminal loss.

Election on dispositions of eligible capital property
For a disposition of property from your cumulative eligible capital account, it may qualify to an election for tax years ending after February 27, 2000. The election allows qualified individuals to treat dispositions of this type of property as capital gains instead of business income. Use the "Real estate, depreciable property, and other properties" section of Schedule 3 to report the capital gain.

5. Bonds, debentures, promissory notes

Use this option to report capital gains or capital losses from the disposition of bonds, debentures, Treasury bills, promissory notes, and other properties. Other properties include bad debts, foreign exchange gains and losses, and options, as well as discounts, premiums, and bonuses on debt obligations.

Treasury bills (T-bills) and stripped bonds
When a T-bill or a stripped bond is issued at a discount and the taxpayer keep it until it matures, the difference between the issue price and the amount you cash it in for is considered to be interest that accrued to the taxpayer. However, if the taxpayer sell the T-bill or stripped bond before it matures, you may have a capital gain or loss in addition to the interest accrued at that time.

Before you calculate the capital gain or loss, you have to determine the amount of interest accumulated to the date of disposition. Subtract the interest from the proceeds of disposition and calculate the capital gain or loss in the usual way.

Bad debts
If a debt is owed to the taxpayer (other than a debt under a mortgage or a debt resulting from a conditional sales agreement), and it remains unpaid after the taxpayer exhausted all means to collect it, it becomes a bad debt. The debt will be a capital loss if the taxpayer acquired it:

• to earn income from a business or property; or
• as consideration or payment for the sale of capital property in an arm's length transaction.

In most cases, the capital loss is equal to the adjusted cost base of the debt.

To claim a capital loss on a bad debt, you have to file an election with the return. To make this election, write and sign a letter stating that the taxpayer want subsection 50(1) of the Income Tax Act to apply to the bad debt. Attach this letter to the return.

If the debt is from the sale of personal-use property to a person with whom the taxpayer deal at arm's length, the situation is different. You can claim the capital loss in the year that the debt becomes a bad debt. However, the capital loss cannot be more than the capital gain you previously reported on the sale of the property that created the debt.

Foreign exchange gains and losses
Foreign exchange gains or losses from capital transactions in foreign currencies are considered to be capital gains or losses. However, DT Max will only report the amount of the net gain or loss for the year that is more than $200. If the net amount is $200 or less:

• DT Max will report no capital gain or loss; and
• the taxpayer do not have to report it on the return.

6. Other mortgage foreclosures / repossessions

The taxpayer may have held a mortgage on a property but had to repossess the property later because the taxpayer was not paid all or a part of the amount owed under the mortgage. In this case, you may have to report a capital gain or loss.

The following rules also apply when property is repossessed under a conditional sales agreement.

For clarity, a mortgagee is a person who lends money under a mortgage. A mortgagor is a person who borrows money under a mortgage. If, as a mortgagee, the taxpayer repossess a property because the mortgagor failed to pay to the taxpayer the money owed under the mortgage, the taxpayer is considered to have purchased the property. At the time of repossession, the taxpayer do not have a capital gain or loss. Any gain or loss will be postponed until the taxpayer sell the property.

If the taxpayer is the mortgagor and the taxpayer property is repossessed because the taxpayer did not pay the money owed under the mortgage, the taxpayer is considered to have sold the property. Depending on the amount the taxpayer owed at the time of repossession, the taxpayer may have a capital gain, a capital loss, or, in the case of depreciable property, a terminal loss. However, if the property is personal-use property, the taxpayer cannot deduct the loss.

Note
If the capital gain or loss is from the disposition of qualified farm property, report the capital gain or loss on line 124 in the «Qualified farm property» section of Schedule 3.

Other tax implications
DT Max will excluded the capital gains from a mortgage foreclosure or a conditional sales repossession from net income when calculating the claim for the goods and services tax/harmonized sales tax credit, the Canada Child Tax Benefit, credits allowed under certain related provincial or territorial programs, and the age amount. DT Max will will also exclude this income when calculating your social benefits repayment.

7. Personal use property

This option refers to items that the taxpayer own primarily for the personal use or enjoyment of the family and himself. It includes all personal and household items, such as furniture, automobiles, boats, a cottage, and other similar properties.

The adjusted cost base of a personal use property is deemed to be $1000 if the cost is less than $1000. Similarly, even if proceeds are less than $1000, they are deemed to be $1000. No amount is reported if neither Proceeds.cg nor ACB.cg is greater than $1000.

8. Listed personal property (LPP)

LPP is a type of personal-use property. The principal difference between LPP and other personal-use properties is that LPP usually increases in value over time. LPP includes all or any part of any interest in or any right to the following properties:

• prints, etchings, drawings, paintings, sculptures, or other similar works of art;
• jewellery;
• rare folios, rare manuscripts, or rare books;
• stamps; and
• coins.

As with other personal use property, the adjusted cost base of a personal use property is deemed to be $1000 if the cost is less than $1000. Similarly, proceeds are deemed to be $1000 even if that amount is less than $1000. No amount will be reported if neither Proceeds.cg nor ACB.cg is greater than $1000. Precious (or LPP) losses can only be claimed against Precious (or LPP) capital gains. They can be carried back three years and carried forward seven years. DT Max will keep track of any carry forward amount. Use the keyword Carry-Back to carry back this amount to a previous year. DT Max will update the database for next tax season.

Resource properties

This refers to a capital gain on the disposal of resource properties. The calculation will be done on federal section "3. Mutual fund units, deferral or eligible small business corporation shares, and other shares including publicity traded shares" and the section B of Quebec Schedule G.

The resource properties are eligible for the capital gain deduction on the Quebec tax return only. DT Max does not produce form TP-726.20.2Capital gains exemption respecting resource property. This form is available as a blank form. Users have to fill out the form manually then use the keyword Override to override line 292 of the TP1 with the amount calculated on line 70 of TP-726.20.2 form.

Capital gain from T-slips

Allowable business investment loss (ABIL)

Total allowable business investment losses. DT Max will deduct the deductible loss in the current tax year, on line 217 of the federal income tax return and line 234 of the Quebec return. If the amount is reduced, verify the reduction on the schedule of ABIL and Reduction of BIL. If you have inadvertently entered a gain as an allowable business investment gain, DT Max will prompt you to correct your entry.

If the taxpayer could not use all of the ABIL due to insufficient income, DT Max will carry forward the unused amount into next year's database as NonCapLossCF. If, on the other hand, the taxpayer was unable to use the full amount because of the restrictions of the reduction in ABIL calculations, this unused amount will be carried forward as Net-Cap-Loss.

ABIL from a bankrupt corporation

Enter the information pertaining to an eligible loss from a business investment if the loss results from the bankruptcy of a corporation. DT Max will calculate the eligible loss.

ECP - farming/fishing (line 173)

Use this option to enter the taxable capital gain from the disposition of an eligible property (such as milk and egg quotas) that is qualified farm property eligible for the capital gains deduction.

DT Max will report the amount on line 173 of schedule 3 and complete the form T657 Calculation of capital gains deduction for 2010.

Limited partnership (information)

  See the CRA's general income tax guide:
Line 127 - Taxable capital gains
Line 217 - Business investment loss

Type.cg

Choose the type of capital property.

The following options are applicable for the keyword Type.cg.

Land

Building

Farm property to child (excl. QFP)

Stripped bonds

Stripped Coupons are interest payment coupons detached from government bonds. Residuals are the bonds without their interest coupons. Both are sold as individual investments known as "Strips". Strips are always sold at a discount and mature at face value. The longer the term to maturity, the deeper the discount. The difference between the purchase price and the face value is your interest income.

Treasury bills

Treasury bills (T-bills) are very safe investments issued by the federal government and some provinces. These investments are sold at a lower price than their price at maturity. The difference between the purchase price and the selling price represents your return. Although the return on this category of investment is a capital gain, it is considered to be interest income for tax purposes and is therefore taxable at 100%.

Foreign exchange

Foreign exchange gains or losses from capital transactions in foreign currencies are considered to be capital gains or losses. However, you only have to report the amount of your net gain or loss for the year that is more than $200. If the net amount is $200 or less:

Ecological property

Other depreciable property

Other capital gains (T-Slips)

Other capital gains (T3-slips)

Qual. sm. bus. corp. shares (T-slips)

Qual. sm. bus. corp. shares (T3-slips)

Qual. farm property (QFP) (T-slips)

Qual. farm property (QFP) (T3-slips)

QFP - mortgage foreclosures/cond. sales rep.

Partnerships - your share of capital gains

Limited Partnership - your share of capital gains

Other

  See the CRA's general income tax guide:
Line 127 - Taxable capital gains
Line 217 - Business investment loss

Descript.cg

Use Descript.cg to enter a short description of the source of the capital gain/loss to be printed on schedule 3 and schedule G.

  See the CRA's general income tax guide:
Line 127 - Taxable capital gains
Line 217 - Business investment loss

Province-Terr.g

Enter the province or territory of the property.

  See the CRA's general income tax guide:
Line 127 - Taxable capital gains
Line 217 - Business investment loss

#Shares.cg

Enter the number of shares of a qualified small business or stock sold with the keyword #SHARES.CG .

This keyword is only available for the following options:

• Qualified small business shares
• Stock & other non depreciable property
• Allowable business investment loss

  See the CRA's general income tax guide:
Line 127 - Taxable capital gains
Line 217 - Business investment loss

Face-Value.c

Use Face-Value.c to enter the face value of the bonds. DT Max will remember the information.

Enter this information in the program as soon as you get it so that it is available upon disposition of the capital asset.

  See the CRA's general income tax guide:
Line 127 - Taxable capital gains
Line 217 - Business investment loss

Date-Acquisition

Use Date-Acquisition to enter the date of acquisition of the capital property sold. This is relevant for all capital gains or losses except those appearing on a T-Slip.

The date will be remembered by DT Max. Enter this information as soon as you get it so that it will be available when the capital asset is diposed of.

  See the CRA's general income tax guide:
Line 127 - Taxable capital gains
Line 217 - Business investment loss

Date-Maturity.c

Use Date-Maturity.c to enter the maturity date of bonds.

It will be remembered by DT Max. Enter this information as soon as you get it so that it will be available when the capital asset is diposed of, and so that you can inquire about it when preparing next year's returns or for financial planning.

  See the CRA's general income tax guide:
Line 127 - Taxable capital gains
Line 217 - Business investment loss

Date-Disposition

Use Date-Disposition to enter the date of disposition of the capital property sold. This is relevant for all capital gains or losses except those appearing on a T-Slip.

  See the CRA's general income tax guide:
Line 127 - Taxable capital gains
Line 217 - Business investment loss

Proceeds.cg   

The amount received in payment for the capital property disposed of is entered as Proceeds.cg of the capital property disposition. These are the amounts to be printed on schedule 3 of the income tax return (schedule G of the Quebec tax return). Use [Alt-J] to enter different values for other jurisdictions.

  See the CRA's general income tax guide:
Line 127 - Taxable capital gains
Line 217 - Business investment loss

ACB.cg   

Use ACB.cg to enter the ACB (adjusted cost base) of a capital property disposition. This may be a real disposition or a deemed disposition.

The ACB is usually the cost of a property plus any expenses to acquire it, such as commissions and legal fees. The cost of a capital property is its actual or deemed cost, depending on the type of property and how it was acquired. It also includes capital expenditures, such as the cost of additions and improvements to the property. We cannot add current expenses, such as maintenance and repair costs, to the cost base of a property.

Identical properties
Properties of a group are considered to be identical if each property in the group is the same as all the others. The most common examples of identical properties are shares of the same class of the capital stock of a corporation or units of a mutual fund trust.

We may buy and sell several identical properties at different prices over a period of time. For that case, we have to calculate the average cost of each property in the group at the time of each purchase to determine the ACB (dispositions of identical properties do not affect the ACB). The average cost is calculated by dividing the total cost of identical properties purchased (this is usually the cost of the property plus any expenses involved in acquiring it) by the total number of identical properties owned.

T3 slip
For 2004 and subsequent years, any amount reported in Box 42 of the T3 slip represents a change in the capital balance of the mutual fund trust. This amount is used when calculating the adjusted cost base (ACB) in the year of disposition..

Property for which the Form T664 or T664(Seniors) have been filed
Special rules also apply to determine the ACB of a property for which the Form T664 or T664(Seniors), Election to Report a Capital Gain on Property Owned at the End of February 22, 1994 have been filed. In most cases, the capital property is considered to have been sold at the end of February 22, 1994, and to have immediately reacquired it on February 23, 1994. The ACB of the property on February 23, 1994, depends on the type of property for which the election have been filed.

For an interest in, or shares of, a flow-through entity, in most cases the ACB of the interest or shares will not change.

Note
Generally, the Exempt capital gains balance (ECGB) expires after 2004. If by the end of 2004, you still have an ECGB, it must be add to the adjusted cost base of the shares of, or interest in, the flow-through entity.

For capital property, other than a flow-through entity, the ACB is usually the amount designated as proceeds of disposition on Form T664 or T664(Seniors). If the property is a cottage, rental property, or other non-qualifying real property, the ACB is the designated proceeds of disposition minus the reduction for non-qualifying real property.

Also, if the designated proceeds of disposition were more than the fair market value of the property at the end of February 22, 1994, the ACB on February 23, 1994, may be reduced.

Property inherit or receive as a gift For property received as a gift, it is generally considered to have been acquired at its fair market value (FMV) on the date acquired. Similarly, for a property win in a lottery, it is considered to have been acquired at its FMV at the time it was won.

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

  See the CRA's general income tax guide:
Line 127 - Taxable capital gains
Line 217 - Business investment loss

Expenses.cg   

Use Expenses.cg to enter the expenses related to a capital property disposition.

Outlays and expenses are amounts that are incurred to sell a capital property. THey will be deducted from the proceeds of disposition when calculating your capital gain or loss. These types of expenses include fixing-up expenses, finders' fees, commissions, brokers' fees, surveyors' fees, legal fees, transfer taxes, and advertising costs.

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

  See the CRA's general income tax guide:
Line 127 - Taxable capital gains
Line 217 - Business investment loss

ForeignCurrency

Indicate whether the transaction has been made in foreign currency (yes/no).

  See the CRA's general income tax guide:
Line 127 - Taxable capital gains
Line 217 - Business investment loss

Country.cg

Enter the name of the country of origin regarding the income from sources outside of Canada.

  See the CRA's general income tax guide:
Line 127 - Taxable capital gains
Line 217 - Business investment loss

Exchange.cg

Use this keyword to indicate the exchange rate applicable the proceeds of disposition. Enter this rate only if the proceeds of disposition are expressed in foreign currency.

Click here for the CRA's records of average exchange rates.

The following options are applicable for the keyword Exchange.cg.

United States [dollar = 1.14197729 Year 2009]

United States [dollar = 1.22630000 January 2009]

United States [dollar = 1.24514000 February 2009]

United States [dollar = 1.26451364 March 2009]

United States [dollar = 1.22404286 April 2009]

United States [dollar = 1.15092000 May 2009]

United States [dollar = 1.12653182 June 2009]

United States [dollar = 1.12217727 July 2009]

United States [dollar = 1.08821000 August 2009]

United States [dollar = 1.08176190 September 2009]

United States [dollar = 1.05485238 October 2009]

United States [dollar = 1.05957500 November 2009]

United States [dollar = 1.05440000 December 2009]

Argentina [peso = 0.3037 Year 2009]

Australia [dollar = 0.8969 Year 2009]

Bahamas [dollar = 1.1420 Year 2009]

Brazil [new real = 0.5738 Year 2009]

Burma (Myanmar) [kyat = 0.2065 Year 2009]

Chile [peso = 0.002043 Year 2009]

China [renminbi = 0.1672 Year 2009]

Colombia [peso = 0.000531 Year 2009]

Croatia [kuna = 0.2160 Year 2009]

Czech Republic [koruna = 0.05998 Year 2009]

Denmark [krone = 0.2129 Year 2009]

East Caribbean [dollar = 0.4293 Year 2009]

European Euro [Euro = 1.5855 Year 2009]

Fiji [dollar = 0.5887 Year 2009]

Communauté Financière Africaine [franc C.F.A = 0.002417]

Comptoirs Français du Pacifique [franc C.F.P = 0.01329]

Ghana [cedi 124 days = 0.7999 Year 2009]

Guatemala [quetzal = 0.1405 Year 2009]

Honduras [lempira = 0.06045 Year 2009]

Hong Kong [dollar = 0.147321 Year 2009]

Hungary [forint = 0.005657 Year 2009]

Iceland [krona = 0.009261 Year 2009]

India [rupee = 0.02360 Year 2009]

Indonesia [rupiah = 0.000110 Year 2009]

Israel [new shekel = 0.2903 Year 2009]

Jamaica [dollar = 0.01306 Year 2009]

Japan [yen = 0.01220 Year 2009]

Malaysia [ringgit = 0.3236 Year 2009]

Mexico [peso = 0.08448 Year 2009]

Morocco [dirham = 0.1409 Year 2009]

Neth. Antilles [guilder = 0.6474 Year 2009]

New Zealand [dollar = 0.7193 Year 2009]

Norway [krone = 0.1815 Year 2009]

Pakistan [rupee = 0.01402 Year 2009]

Panama [balboa = 1.1420 Year 2009]

Peru [new sol = 0.3788 Year 2009]

Philippines [peso = 0.02401 Year 2009]

Poland [zloty = 0.3667 Year 2009]

Romania [nouveau leu = 0.3741 Year 2009]

Russia [rouble = 0.03595 Year 2009]

Serbia [dinar = 0.01687 Year 2009]

Singapore [dollar = 0.7842 Year 2009]

South Africa [rand = 0.1362 Year 2009]

South Korea [won = 0.000895 Year 2009]

Sri Lanka [rupee = 0.009932 Year 2009]

Sweden [krona = 0.1493 Year 2009]

Switzerland [franc = 1.0505 Year 2009]

Taiwan [new dollar = 0.03453 Year 2009]

Thailand [baht = 0.03322 Year 2009]

Trinidad and Tobago [dollar = 0.1832 Year 2009]

Tunisia [dinar = 0.8448 Year 2009]

Turkey [new lira = 0.7333 Year 2009]

United Arab Emirates [dirham = 0.3109 Year 2009]

United Kingdom [pound = 1.78035578 Year 2009]

Venezuela [bolivar fuerte = 0.5318 Year 2009]

Vietnam [dong = 0.000064 Year 2009]

Other (spécify)

  See the CRA's general income tax guide:
Line 127 - Taxable capital gains
Line 217 - Business investment loss

ACB-Exchange.cg

Use this keyword to indicate the exchange rate applicable to the adjusted cost base. Enter this rate only if the adjusted cost base is expressed in foreign currency.

Click here for the CRA's records of average exchange rates.

The following options are applicable for the keyword ACB-Exchange.cg.

United States [dollar = 1.14197729 Year 2009]

United States [dollar = 1.22630000 January 2009]

United States [dollar = 1.24514000 February 2009]

United States [dollar = 1.26451364 March 2009]

United States [dollar = 1.22404286 April 2009]

United States [dollar = 1.15092000 May 2009]

United States [dollar = 1.12653182 June 2009]

United States [dollar = 1.12217727 July 2009]

United States [dollar = 1.08821000 August 2009]

United States [dollar = 1.08176190 September 2009]

United States [dollar = 1.05485238 October 2009]

United States [dollar = 1.05957500 November 2009]

United States [dollar = 1.05440000 December 2009]

Argentina [peso = 0.3037 Year 2009]

Australia [dollar = 0.8969 Year 2009]

Bahamas [dollar = 1.1420 Year 2009]

Brazil [new real = 0.5738 Year 2009]

Burma (Myanmar) [kyat = 0.2065 Year 2009]

Chile [peso = 0.002043 Year 2009]

China [renminbi = 0.1672 Year 2009]

Colombia [peso = 0.000531 Year 2009]

Croatia [kuna = 0.2160 Year 2009]

Czech Republic [koruna = 0.05998 Year 2009]

Denmark [krone = 0.2129 Year 2009]

East Caribbean [dollar = 0.4293 Year 2009]

European Euro [Euro = 1.5855 Year 2009]

Fiji [dollar = 0.5887 Year 2009]

Communauté Financière Africaine [franc C.F.A = 0.002417]

Comptoirs Français du Pacifique [franc C.F.P = 0.01329]

Ghana [cedi 124 days = 0.7999 Year 2009]

Guatemala [quetzal = 0.1405 Year 2009]

Honduras [lempira = 0.06045 Year 2009]

Hong Kong [dollar = 0.147321 Year 2009]

Hungary [forint = 0.005657 Year 2009]

Iceland [krona = 0.009261 Year 2009]

India [rupee = 0.02360 Year 2009]

Indonesia [rupiah = 0.000110 Year 2009]

Israel [new shekel = 0.2903 Year 2009]

Jamaica [dollar = 0.01306 Year 2009]

Japan [yen = 0.01220 Year 2009]

Malaysia [ringgit = 0.3236 Year 2009]

Mexico [peso = 0.08448 Year 2009]

Morocco [dirham = 0.1409 Year 2009]

Neth. Antilles [guilder = 0.6474 Year 2009]

New Zealand [dollar = 0.7193 Year 2009]

Norway [krone = 0.1815 Year 2009]

Pakistan [rupee = 0.01402 Year 2009]

Panama [balboa = 1.1420 Year 2009]

Peru [new sol = 0.3788 Year 2009]

Philippines [peso = 0.02401 Year 2009]

Poland [zloty = 0.3667 Year 2009]

Romania [nouveau leu = 0.3741 Year 2009]

Russia [rouble = 0.03595 Year 2009]

Serbia [dinar = 0.01687 Year 2009]

Singapore [dollar = 0.7842 Year 2009]

South Africa [rand = 0.1362 Year 2009]

South Korea [won = 0.000895 Year 2009]

Sri Lanka [rupee = 0.009932 Year 2009]

Sweden [krona = 0.1493 Year 2009]

Switzerland [franc = 1.0505 Year 2009]

Taiwan [new dollar = 0.03453 Year 2009]

Thailand [baht = 0.03322 Year 2009]

Trinidad and Tobago [dollar = 0.1832 Year 2009]

Tunisia [dinar = 0.8448 Year 2009]

Turkey [new lira = 0.7333 Year 2009]

United Arab Emirates [dirham = 0.3109 Year 2009]

United Kingdom [pound = 1.78035578 Year 2009]

Venezuela [bolivar fuerte = 0.5318 Year 2009]

Vietnam [dong = 0.000064 Year 2009]

Other (spécify)

  See the CRA's general income tax guide:
Line 127 - Taxable capital gains
Line 217 - Business investment loss

Exp-Exchange.cg

Use this keyword to indicate the exchange rate applicable to the outlays and expenses relating to capital property dispositions. Enter this rate only if the outlays and expenses relating to capital property dispositions are expressed in foreign currency.

Click here for the CRA's records of average exchange rates.

The following options are applicable for the keyword Exp-Exchange.cg.

United States [dollar = 1.14197729 Year 2009]

United States [dollar = 1.22630000 January 2009]

United States [dollar = 1.24514000 February 2009]

United States [dollar = 1.26451364 March 2009]

United States [dollar = 1.22404286 April 2009]

United States [dollar = 1.15092000 May 2009]

United States [dollar = 1.12653182 June 2009]

United States [dollar = 1.12217727 July 2009]

United States [dollar = 1.08821000 August 2009]

United States [dollar = 1.08176190 September 2009]

United States [dollar = 1.05485238 October 2009]

United States [dollar = 1.05957500 November 2009]

United States [dollar = 1.05440000 December 2009]

Argentina [peso = 0.3037 Year 2009]

Australia [dollar = 0.8969 Year 2009]

Bahamas [dollar = 1.1420 Year 2009]

Brazil [new real = 0.5738 Year 2009]

Burma (Myanmar) [kyat = 0.2065 Year 2009]

Chile [peso = 0.002043 Year 2009]

China [renminbi = 0.1672 Year 2009]

Colombia [peso = 0.000531 Year 2009]

Croatia [kuna = 0.2160 Year 2009]

Czech Republic [koruna = 0.05998 Year 2009]

Denmark [krone = 0.2129 Year 2009]

East Caribbean [dollar = 0.4293 Year 2009]

European Euro [Euro = 1.5855 Year 2009]

Fiji [dollar = 0.5887 Year 2009]

Communauté Financière Africaine [franc C.F.A = 0.002417]

Comptoirs Français du Pacifique [franc C.F.P = 0.01329]

Ghana [cedi 124 days = 0.7999 Year 2009]

Guatemala [quetzal = 0.1405 Year 2009]

Honduras [lempira = 0.06045 Year 2009]

Hong Kong [dollar = 0.147321 Year 2009]

Hungary [forint = 0.005657 Year 2009]

Iceland [krona = 0.009261 Year 2009]

India [rupee = 0.02360 Year 2009]

Indonesia [rupiah = 0.000110 Year 2009]

Israel [new shekel = 0.2903 Year 2009]

Jamaica [dollar = 0.01306 Year 2009]

Japan [yen = 0.01220 Year 2009]

Malaysia [ringgit = 0.3236 Year 2009]

Mexico [peso = 0.08448 Year 2009]

Morocco [dirham = 0.1409 Year 2009]

Neth. Antilles [guilder = 0.6474 Year 2009]

New Zealand [dollar = 0.7193 Year 2009]

Norway [krone = 0.1815 Year 2009]

Pakistan [rupee = 0.01402 Year 2009]

Panama [balboa = 1.1420 Year 2009]

Peru [new sol = 0.3788 Year 2009]

Philippines [peso = 0.02401 Year 2009]

Poland [zloty = 0.3667 Year 2009]

Romania [nouveau leu = 0.3741 Year 2009]

Russia [rouble = 0.03595 Year 2009]

Serbia [dinar = 0.01687 Year 2009]

Singapore [dollar = 0.7842 Year 2009]

South Africa [rand = 0.1362 Year 2009]

South Korea [won = 0.000895 Year 2009]

Sri Lanka [rupee = 0.009932 Year 2009]

Sweden [krona = 0.1493 Year 2009]

Switzerland [franc = 1.0505 Year 2009]

Taiwan [new dollar = 0.03453 Year 2009]

Thailand [baht = 0.03322 Year 2009]

Trinidad and Tobago [dollar = 0.1832 Year 2009]

Tunisia [dinar = 0.8448 Year 2009]

Turkey [new lira = 0.7333 Year 2009]

United Arab Emirates [dirham = 0.3109 Year 2009]

United Kingdom [pound = 1.78035578 Year 2009]

Venezuela [bolivar fuerte = 0.5318 Year 2009]

Vietnam [dong = 0.000064 Year 2009]

Other (spécify)

  See the CRA's general income tax guide:
Line 127 - Taxable capital gains
Line 217 - Business investment loss

PrincipalRes.cg

Use the keyword PrincipalRes.cg to designate the property as a principal residence and to complete form T2091(IND) titled Designation of a property as a principal residence by an individual.

A principal residence can be any of the following types of housing units:

• a house;
• a cottage;
• a condominium;
• an apartment in an apartment building;
• an apartment in a duplex; or
• a trailer, mobile home, or houseboat.

When the home is sold or is considered to have been sold, the sale does not normally have to be reported on the tax return and no tax has to be paid on any gain from the sale. This is the case if the home was the principal residence for every year owned.

If the home was not the principal residence for all the years that the taxpayer owned it, the capital gain, or part of the capital gain on the property that relates to the years for which the property was not designated as the principal residence must be reported.

Note Because the home is considered personal-use property, the loss cannot be claimed.

Note For years before 1982, more than one housing unit per family can be designated as a principal residence.

  See the CRA's general income tax guide:
Line 127 - Taxable capital gains
Line 217 - Business investment loss

Street.res

Use the keyword Street.res to enter the street where the principal residence is located.

City.res

Use the keyword City.res to enter the city where the principal residence is located.

Province.res

Use the keyword Province.res to enter the province where the principal residence is located.

PostCode.res

Use the keyword PostCode.res to enter the postal code of the principal residence.

Designation.res

Use the keyword Designation.res to specify the taxation years period during which the property was designated as principal residence on form T2091(IND) titled Designation of a property as a principal residence by an individual.

The following options are applicable for the keyword Designation.res.

Period after 1971 to current year

Designate zero year as a principal residence

  See the CRA's general income tax guide:
Line 127 - Taxable capital gains
Line 217 - Business investment loss

Years.res1

Use the keyword Years.res1 to enter the period of taxation years during which the residence is designated as the principal residence.

The following options are applicable for the keyword Years.res1.

From

To

Property-1981.c   

Use the keyword Property-1981.c to enter the information needed to calculate the capital gain on form T2091(IND) titled Designation of a property as a principal residence by an individual when the property was owned on December 31, 1981.

The following options are applicable for the keyword Property-1981.c.

Adjusted cost base on December 31, 1981

Fair market value on December 31, 1981

Capital expenditures made after 1981

  See the CRA's general income tax guide:
Line 127 - Taxable capital gains
Line 217 - Business investment loss

Election-1994.c   

Use the keyword Election-1994.c to enter the information needed to calculate the reduction of the capital gain on form T2091(IND)-WS Principal residence worksheet when form T664 or T664 (Seniors) titled Election to report a capital gain on property owned at the end of February 22, 1994 has been completed for the property.

The following options are applicable for the keyword Election-1994.c.

Designated proceeds of disposition for the 1994 election

Adjusted cost base on February 22, 1994

Fair market value on February 22, 1994

Adjustment to cost base after 1981 and before 23/02/94

Capital gain deemed to have been realized on 22/02/94

  See the CRA's general income tax guide:
Line 127 - Taxable capital gains
Line 217 - Business investment loss

SpouseDesMonths   

Use the keyword SpouseDesMonths to enter the number of months for each period that the spouse or common-law partner designated this property as a principal residence on form T2091(IND).

This information is needed to calculate the reduction of the capital gain on form T2091(IND)-WS titled Principal residence worksheet.

The following options are applicable for the keyword SpouseDesMonths.

Period after February 1992 and before March 1994

Period after 1971 and before March 1994

  See the CRA's general income tax guide:
Line 127 - Taxable capital gains
Line 217 - Business investment loss

Change-In-Use.c

Indicate if a change in use of property have been done as per the election under section 284 or 286.1 [TP-274].

  See the CRA's general income tax guide:
Line 127 - Taxable capital gains
Line 217 - Business investment loss

YearsChange.res

Use the keyword YearsChange.res to enter the period of taxation years for the following situations:

• The taxpayer began to use the principal residence to earn income, and is making or has made an election under section 284 of the Taxation Act, whereby he/she is deemed not to have changed the use of the property in question;
• The taxpayer began to use as the principal residence a property previously used to earn income, and he/she has made an election under section 286.1 of the Taxation Act, whereby they are deemed not to have disposed of the property at the time of the change in its use.

The following options are applicable for the keyword YearsChange.res.

From

To

Gift.cg

Specify whether this is a taxable capital gain resulting from a gift of capital property made in the year. DT Max will report that capital gain on line 127 of the federal return and on line 139 of the Quebec return. If a capital gain deduction is claimed, DT Max will report the amount of the deduction on line 254 of the federal return and on line 292 of the Quebec return. The two amounts will also be used to calculate the limit on income in the section entitled "Charitable donations" on page 3 of the federal return (the Ministère du revenu du Québec has not implemented that new rule).

Note: in order for DT Max to handle this asset as a gift, you must also enter an amount with the keyword Donations .

The following options are applicable for the keyword Gift.cg.

Increased limit for donations (25%)

Use this option to increased the limit for donations by 25% if the taxpayer donate cash or other property to a registered charity or other qualified donee in the year, the total donations limit will generally be 75% of the net income for the year.

The line 4 of schedule 9 is calculated as follow :

The amount of current year taxable capital gains from capital property donated in the year minus the amount of current year capital gains deduction from capital property donated in the year. DT Max will report the result on line 4 of schedule 9.

Increased limit for donations by 25%

Inclusion rate reduced - T1170

Use this option to generate the form T1170. The T1170 is use if, in 2010, the taxpayer donated any of the following types of properties to a registered charity or other qualified donee (other than a private foundation):

• a share, debt obligation, or right listed on a prescribed stock exchange;
• a share of the capital stock of a mutual fund corporation;
• a unit of a mutual fund trust;
• an interest in a related segregated fund trust;
• a prescribed debt obligation; or
• ecologically sensitive land (including a covenant, an easement, or in the case of land in Quebec, a real servitude).

This form allows the taxpayer to calculate the adjusted amount of the capital gains resulting from the donation. If the donation results in a capital loss, enter the loss directly on Schedule 3.

Additional deduction for stock option shares

Use this option if the taxpayer made a gifts of securities acquired under a security option plan. An additional deduction on line 249 of your return can be claimed for donating publicly-listed shares of corporations or mutual fund units acquired through the employer's security option plan. However all of the following conditions must be meet :

• The security was acquired under an option that was granted to the taxpayer as an employee of a corporation or a mutual fund trust.
• The security was disposed in the year it was acquired, and not more than 30 days after its acquisition, by donating it to a qualified donee that is not a private foundation.
• The taxpayer is entitled to claim a security option deduction on line 249.

DT Max will calculate 25% of the amount entered in the keyword StockOp-Ben. This deduction will appear on federal line 249 and on Quebec line 297.

Not a gift

Eligible-Gift.cg   

Use the keyword Eligible-Gift.cg to enter the amount by which the fair market value of the gifted property exceeds the amount of an advantage, if any, received for the gift.

The advantage is generally the total of all property, services, compensation, or other benefits received as partial payment for, or in gratitude for, the gift.

DT Max will use this amount to calculate the gain subject to the 25% inclusion rate. This amount will be appear in column 6 of forms T1170 and TP-231. If no amount is entered with this keyword, DT Max will assume the eligile amount to be equal to the proceeds. Use [Alt-J] to enter different values for other jurisdictions.

CCA-Recovery.cg   

If a gift, enter the amount of recaptured depreciation included on the 2010 return. Use [Alt-J] to enter different values for other jurisdictions.

Amount.cgs   

Use Amount.cgs to enter the total amount of capital gains from the T4 slip. This is the total capital gain, which reflects 100% of the gain. DT Max will calculate the taxable amount. Use [Alt-J] to enter different values for other jurisdictions.

  See the CRA's general income tax guide:
Line 127 - Taxable capital gains
Line 217 - Business investment loss

Reserves.cg   

Use this keyword for all capital gains or losses where reserves can be taken. Use Reserves.cg to enter the amount of the capital gains reserve for the current year in respect to that particular capital disposition.

DT Max will carry forward the amount to be brought into income in future years. It is the tax preparer who must decide when and how much of the reserves to bring into income (see Cap-Reserves ).

The following options are applicable for the keyword Reserves.cg.

Reserve on disposition

Reserve on disposition of property to child

  See the CRA's general income tax guide:
Line 127 - Taxable capital gains
Line 217 - Business investment loss

Defer-Gain   

capital gains deferral to eligible small business corporation shares after Feb. 27, 2000. Use [Alt-J] to enter different values for other jurisdictions.

  See the CRA's general income tax guide:
Line 127 - Taxable capital gains
Line 217 - Business investment loss

BusinessLoan   

If your client loaned an amount to a small business which was deemed lost, use BusinessLoan to claim that amount as an allowable business investment loss. This will be added to the total amount of eligible business investment loss for purposes of the ABIL calculation.

The following options are applicable for the keyword BusinessLoan.

Advance to a shareholder

Guarantee (suretyship)

  See the CRA's general income tax guide:
Line 217 - Business investment loss

ABIL-Details

Details pertaining to ABIL deduction

The following options are applicable for the keyword ABIL-Details.

Information respecting the corporation

Information respecting your investment in shares

Information respecting a case of a loan

Information respecting a case of an endorsement

  See the CRA's general income tax guide:
Line 127 - Taxable capital gains
Line 217 - Business investment loss

Corp-Name.a

Enter the name of corporation.

End-Date.a

Enter the date at which corporation permanently ceased its operations (if applicable).

Reg-Number.a

Enter the registration number of corporation.

Activities.a

Enter the type of business or operations.

Employe#.a

Enter the number of full-time employees of the corporation.

Partners.a

Enter the names of corporation's shareholders.

Administr.a

Enter the names of corporation's officers.

Measures.a

Describe the steps taken to recover debt.

Endorse.a

Describe the steps taken to comply with endorsement.

The following options are applicable for the keyword Endorse.a.

You continue to make payments

You fully reimburse the amounts owed by the corp.

Related.a

Enter the relationship with buyer.

Relation.a

What is the relationship?

For-Resource

If the capital gain is due to a disposition of a foreign resource property, enter "Yes".

  See the CRA's general income tax guide:
Line 127 - Taxable capital gains
Line 217 - Business investment loss

Gain-Tslip

If your client has elected to report a capital gain on a mutual fund or other flow-through, enter the ineligible gain recorded on the t-slip with this keyword to enable the application of the capital gain reduction against the t-slip gain. The exempt gain balance will be reduced by the capital gains reduction applied.

The following options are applicable for the keyword Gain-Tslip.

Other capital gains (T-Slips)

Other capital gains (T3-slips)

  See the CRA's general income tax guide:
Line 127 - Taxable capital gains
Line 217 - Business investment loss

Portion-Disp   

Enter the new adjusted cost base (ACB) for a partial disposition of elected property incurred after February 22, 1994. If the entire property elected was disposed of, no entry is required. This entry is necessary to enable the calculation of a real capital gain or loss arising when only a portion of the assets on hand are disposed of. This will also enable DT Max to carry forward the remaining ACB after taking into account the partial disposition.

If you have made acquisitions subsequent to the capital gain election (February 22, 1994), enter the adjusted cost base of the acquisitions with Addition-ACB. This will be added to the ACB being carried forward. Use [Alt-J] to enter different values for other jurisdictions.

  See the CRA's general income tax guide:
Line 127 - Taxable capital gains
Line 217 - Business investment loss

Addition-ACB   

Use Addition-ACB to enter the adjusted cost base of additions made during the year. If you have made a capital gain election, only additions after the election need to be entered because the ACB entered for the election reflects the holdings on hand as of February 22, 1994. Use [Alt-J] to enter different values for other jurisdictions.

  See the CRA's general income tax guide:
Line 127 - Taxable capital gains
Line 217 - Business investment loss

Cap-GainOV   

Use Cap-GainOV to override the gain within this capital gains group. Note that using an override here may give the impression that some of the calculations don't work. It is better to find the correct amounts and enter them. Incorrect amounts will be entered into the keying field for proceeds, which will cause a delay and may lead to further problems. Use [Alt-J] to enter different values for other jurisdictions.

StockOp-Ben   

Use the keyword StockOp-Ben to enter the stock option benefits realized with the disposition of employee stock option shares.

This amount represent any amount included in the income as a taxable employee option benefit for the securities (even if a claim for security option deduction have been made).

DT Max will add this amount to the ACB. This amount should be entered to avoid double taxation on the benefits already included as employment income from the T4 slip or as a disposition of deferred stock option shares.

If the stock option shares were donated, an additional deduction may be claimed on federal line 249 or Quebec line 297. Use [Alt-J] to enter different values for other jurisdictions.

  See the CRA's general income tax guide:
Line 127 - Taxable capital gains
Line 217 - Business investment loss

Province.c

If your client is a non-resident, indicate in which province he disposed of the capital property. This information is only required for non-residents. If the disposition of capital property occurred in Quebec, the taxpayer is subject to provincial tax on the capital gain and is deemed a resident of Quebec entitled to a remission order. If the disposition of capital property occurred elsewhere in Canada, the client is subject to the federal surtax of 48% on the capital gain.

  See the CRA's general income tax guide:
Line 127 - Taxable capital gains
Line 217 - Business investment loss

Deemed-Disp

Use Deemed-Disp to enter the deemed disposition of property by an emigrant of Canada on the Form T1243. This form is used if you ceased to be a resident of Canada in the year and you were deemed to have disposed of property when you left Canada, excluding the following properties:

• Canadian real estate, Canadian resource property, and timber resource property;
• Canadian business property (including inventory) if the business is carried on through a permanent establishment in Canada;
• pensions and similar rights, including registered retirement savings plans, registered retirement income funds, and deferred profit-sharing plans;
• rights to certain benefits under employee profit-sharing plans, employee benefit plans, employee trusts, and salary deferral arrangements;
• certain rights or interest in a trust;
• property you owned when you last became a resident of Canada, or property you inherited after you last became a resident of Canada, if you were a resident of Canada for 60 months or less during the 10-year period before you emigrated;
• employee security options subject to Canadian tax; and
• interests in life insurance policies in Canada (other than segregated fund policies).

Note: You can elect to defer the payment of tax on income relating to the deemed disposition of property to completing Form T1244, Election, Under Subsection 220(4.5) of the Income Tax Act, to Defer the Payment of Tax on Income Relating to the Deemed Disposition of Property by using the T1244 .

  See the CRA's general income tax guide:
Line 127 - Taxable capital gains
Line 217 - Business investment loss

Property-T1161

Use Property-T1161 to included the disposition in the list of properties by an emigrant of Canada on the Form T1161. This form is used if you ceased to be a resident of Canada at any time in the year and the fair market value of all the properties you owned when you left Canada was more than $25,000, not including the following properties:

• cash (including bank deposits);
• pension plans, annuities, registered retirement savings plans, registered retirement income funds, retirement compensation arrangements, employee benefit plans, and certain other deferred benefit plans;
• property you owned when you last became a resident of Canada, or property you inherited after you last became a resident of Canada, if you were a resident of Canada for 60 months or less during the 10-year period before you emigrated and the property is not taxable Canadian property; and
• any item of personal-use property (such as your household effects, clothing, cars, collectibles) that has a fair market value of less than $10,000.

  See the CRA's general income tax guide:
Line 127 - Taxable capital gains
Line 217 - Business investment loss

Own-%Share.c

Enter the percentage of your client's share of the capital gain/loss.

  See the CRA's general income tax guide:
Line 127 - Taxable capital gains
Line 217 - Business investment loss

Spouse-Share.c

Use the keyword Spouse-Share.c to enter the remaining percentage of capital gain/loss, and indicate the treatment.

If the remaining capital gain/loss belongs to the taxpayer's spouse, DT Max will add it to the spouse's tax return. Otherwise, the balance will not be added automatically to anyone else's return.

The following options are applicable for the keyword Spouse-Share.c.

Transfer remainder to spouse

This option indicates that the income is shared with the spouse.

DT Max will claim the amount on the taxpayer's income tax return according to the percentage (%) specified, and will allocate the remainder to the spouse.

This option allows you to enter the data shared by the spouses only once. You do not have to enter the data in both spouses' files

Ignore remainder

This option indicates that the income is not shared between the spouses.

DT Max will claim the amount on the taxpayer's income tax return according to the percentage (%) specified, and will ignore the remainder.

  See the CRA's general income tax guide:
Line 127 - Taxable capital gains
Line 217 - Business investment loss

T1244

T1244

CapGain-Ded

If your client is entitled to a capital gain deduction on eligible capital gains and you wish to limit or override the capital gain deduction reported on line 254 of the federal income tax return and line 292 of the Quebec income tax return, use CapGain-Ded to enter the amount of the capital gain deduction and indicate the type of gain eligible for the deduction.

The following options are applicable for the keyword CapGain-Ded.

Capital gains deduction - Federal

Capital gains deduction - Quebec

  See the CRA's general income tax guide:
Line 254 - Capital gains deduction

ExemptLimit

Enter the amount for the capital gain deduction with ExemptLimit . DT Max will report this amount on line 254 of the federal income tax return and line 292 of the Quebec income tax return. For more information on capital gains see Capital-Gain .

  See the CRA's general income tax guide:
Line 254 - Capital gains deduction

Cap-Reserves

DT Max will automatically bring into income any capital gains reserves created in respect of capital dispositions of previous years. Should you wish to retain these in the capital gains reserve accounts or should you enter data for this client for the first time using DT Max, use Cap-Reserves . If you used DT Max for this client last year, the comparative data on the right-hand side of the screen will assist you in entering this information.

See also Capital-Gain, At-Opening, At-YearEnd, In-Income .

The following options are applicable for the keyword Cap-Reserves.

Farm (QFP) & fishing after 01-05-2006, before 19-03-2007

{b}Part 1 - Dispositions of capital property after November 12, 1981 {/b}{br} {b}A. Dispositions of qualified farm property (QFP){/b}{br} {b}{u}Form T2017 line 6680:{/b}{/u}

In 2010, the opening balance for the amount of 2009 reserve for dispositions of QFP to your child after 2000 and before March 19, 2007, all other dispositions of QFP after 2005 and before March 19, 2007, (from line 6681 of form T2017 for 2009).

Fishing (QFiP) before March 19, 2007

{b}Part 1 - Dispositions of capital property after November 12, 1981 {/b}{br} {b}A. Dispositions of qualified qualified fishing property (QXP){/b}{br} {b}{u}Form T2017 line 6680:{/b}{/u}

In 2010, the opening balance for the amount of 2009 reserve for dispositions of all dispositions of QXP after May 1, 2006, and before March 19, 2007 (from line 6681 of Form T2017 for 2009).

Farm (QFP) & fishing after March 18, 2007

{b}Part 1 - Dispositions of capital property after November 12, 1981 {/b}{br} {b}A. Dispositions of qualified farm property (QFP){/b}{br} {b}{u}Form T2017 line 6708:{/b}{/u}

In 2010, the opening balance for the amount of 2009 reserve for dispositions of QFP after March 18, 2007 (from line 6684 of Form T2017 for 2009).

Fishing (QFiP) after March 18, 2007

{b}Part 1 - Dispositions of capital property after November 12, 1981 {/b}{br} {b}A. Dispositions of qualified qualified fishing property (QXP){/b}{br} {b}{u}Form T2017 line 6708:{/b}{/u}

In 2010, the opening balance for the amount of 2009 reserve for dispositions of QXP after March 18, 2007 (from line 6684 of Form T2017 for 2009).

Small business corporation (QSBCS) before March 19, 2007

{b}Part 1 - Dispositions of capital property after November 12, 1981 {/b}{br} {b}B. Dispositions of qualified small business corporation shares (QSBCS){/b} {b}{u}Form T2017 line 6687:{/b}{/u}

In 2010, the opening balance for the amount of 2009 reserve for dispositions of QSBCS after 2000 and QSBCS to your child after 2005 (from line 6688 of form T2017 for 2009) is reported on line 6687 of form T2017.

The ending balance for the amount of 2010 reserve for dispositions of QSBCS after 2001 and QSBCS to your child after 2006 is reported on line 6688 of form T2017. But specially for 2007, the reserve for dispositions of QSBCS after March 18, 2007 is reported on line 6685.

Small business corporation (QSBCS) after March, 2007

Property (other than QFP, QFiP, QSBCS) to your child

{b}Part 1 - Dispositions of capital property after November 12, 1981 {/b}{br} {b}C.Dispositions of property (other than QFP, QXP, and QSBCS) to your child{/b} {b}{u}Form T2017 line 6691:{/b}{/u}

In 2010, the opening balance for the amount of 2009 reserve for dispositions to your child after 2000, of family farm property {b}other than QFP{/b} and shares of capital stock of a small business corporation {b}other than QSBCS{/b}; or after May 1, 2006, of family fishing property {b}other than QXP{/b} (from line 6692 of form T2017 for 2009).

Other property after 2005

{b}Part 1 - Dispositions of capital property after November 12, 1981 {/b}{br} {b}D.Dispositions of property other than dispositions described in A, B, and C above{/b} {b}{u}Form T2017 line 6696:{/b}{/u}

In 2010, the opening balance for the amount of 2009 reserve for dispositions of property after 2005 {b}other than dispositions listed on lines 6680, 6708, 6687, 6709, and 6691{/b} (from line 6699 of form T2017 for 2009).

Capital property before 13-11-1981

{b}Part 2 - Dispositions of capital property before November 13, 1981 {/b}{br} {b}{u}Form T2017 line 6703:{/b}{/u}

In 2010, the opening balance for the amount of 2009 reserve for dispositions before November 13, 1981 (from line 6704 of form T2017 for 2009).

  See the CRA's general income tax guide:
Line 127 - Taxable capital gains

Type.res

Enter the type of capital property.

The following options are applicable for the keyword Type.res.

QFP - mortgage foreclosures/cond. sales rep.

Other

  See the CRA's general income tax guide:
Line 127 - Taxable capital gains

At-Opening   

Enter the amount in the capital gains reserves account at the opening of the current taxation year for the dispositions in the year being entered. This field is updated automatically by DT Max for the following year. See Cap-Reserves . Use [Alt-J] to enter different values for other jurisdictions.

  See the CRA's general income tax guide:
Line 127 - Taxable capital gains

At-YearEnd   

Enter the amount that you wish to keep in the capital gains reserves account at the end of the current taxation year for the dispositions in the year being entered. See Cap-Reserves . Use [Alt-J] to enter different values for other jurisdictions.

  See the CRA's general income tax guide:
Line 127 - Taxable capital gains

In-Income   

This is the amount to be taken into income in the current taxation year in respect to the capital gains account for the dispositions in the year just entered. DT Max gives the user the flexibility to enter this amount or the At-YearEnd. If both are entered, DT Max will verify for consistency, but will accept the At-YearEnd amount. See Cap-Reserves . Use [Alt-J] to enter different values for other jurisdictions.

  See the CRA's general income tax guide:
Line 127 - Taxable capital gains