CCA-Class

DT Max will allow you to enter separate classes for all classes. All separate CCA-Class groups entered will be treated as separate CCA classes on schedule 8 (T2S(8)). Separate classes are allowed for property of the same class relating to separate businesses and for property of the same class which is held for different purposes i.e. earning income from business vs. earning income from property (see Fed Income Tax Reg. 1101).

Enter the amount of depreciation and amortization claimed on the books in the NetIncome group in the Depreciation keyword.

Enter disposals of property in the relevant CCA-Class group. DT Max will calculate any capital gains (and losses for land only) on schedule 6 (T2S(6)). Enter any gains (losses) recorded on the books in the NetIncome group in the Net-Inc-Add or Net-Inc-Ded keyword.

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

Classes of property for CCA, CEC and SR&ED purposes.

Cumulative eligible capital

Enter cumulative eligible capital balances of separate businesses in separate CCA-Class groups. DT Max will print a separate schedule 10 (T2S(8)(A)) for each group and a summary where more than one schedule exists.

Land - non depreciable property

Class 1 - 4% DB

Class 1 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.

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% DB

Class 2 property includes 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% DB

Class 3 buildings acquired before 1988 with a cost exceeding $50,000 should be entered in separate classes.

Class 4 - 6% DB

Class 4 includes railway or trolley bus systems.

Class 5 - 10% DB

Class 5 includes pulp mills acquired before 1962.

Class 6 - 10% DB

Class 6 buildings with a cost exceeding $50,000 should be entered in separate classes.

Class 7 - 15% DB

Class 7 includes marine vessels such as canoes or rowboats.

Class 8 - 20% DB

Class 8 includes equipment, furniture, and other depreciable property not included in any other class.

Class 9 - 25% DB

Class 9 includes aircraft and pre-May 26, 1976 electrical generating and radiocommunications equipment.

Class 10 - 30% DB

Class 10 includes automobiles under $30 000, trucks and computer equipment.

Class 10/12 (computers)

Class 10/12 (COMPUTERS) should be used for property which is included in class 10 for federal purposes and class 12 for Quebec only where the property is eligible for a 100% capital cost allowance rate.

Class 10.1 - 30% DB

Use Class 10.1 for automobiles costing over $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% DB

Class 11 includes advertising signs and billboards which are used to earn rental income and were acquired before 1988.

Class 12 - 100% DB

Class 12 includes books, small tools (under $200 acquired before May 2, 2006, and under $500 acquired after May 1, 2006), certified feature films, most computer software, rental video cassettes and cash registers.

Class 13 - SL

Class 13 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 months entered for an addition in the Additions 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

Class 14 includes patents, franchises, concessions or licences having a limited period.

Class 15 - SL (timber rate)

Class 15 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. Enter the rate to be used in the Timber-Rate keyword in this group.

Class 16 - 40% DB

Class 16 includes taxicabs, rental cars, arcade games and pre-May 26/76 aircraft.

Class 17 - 8% DB

Class 17 includes telephone, telegraph and data communications switching equipment and roads, sidewalks, parking areas, storage areas and similar surface construction.

Class 18 - 60% DB

Class 18 includes pre-May 26/76 motion picture films.

Class 19 - 20% DB

Class 19 - 50% SL (up to UCC)

Class 19 includes 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 (up to UCC)

Class 20 includes 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 (up to UCC)

Class 21 includes 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% DB

Class 22 includes pre-1988 power-operated movable equipment designed to excavate, move, place or compact earth, rock, concrete or asphalt.

Class 23 - 100% DB

Class 23 includes leasehold interests, licences and buildings on or with respect to the Montreal or Vancouver Expo sites.

Class 24 - 50% SL (up to UCC)

Class 24 includes pollution control equipment. The Ontario current cost adjustment is available for purchases of class 24 and 27 equipment made after May 17, 1989.

Class 25 - 100% DB

Class 25 includes pre-Oct.23/68 property acquired by Crown or municipally-owned corporations.

Class 26 - 5% DB

Class 26 includes catalysts and pre-May 22/79 deuterium-enriched water.

Class 27 - 50% SL (up to UCC)

Class 27 includes pollution control equipment. The Ontario current cost adjustment is available for purchases of Class 24 and 27 equipment made after May 17, 1989.

Class 28 - 30% DB

Class 28 includes pre-1988 mining equipment used for mine expansion and development.

Class 29 - 50% SL (up to UCC)

Class 29 includes 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% DB

Class 30 includes pre-1988 telecommunications satellites or spacecraft.

Class 31 - 5% DB

Class 32 - 10% DB

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% DB

Class 33 includes timber resource property.

Class 34 - 50% SL (up to UCC)

Class 34 certified energy conservation or energy-efficient equipment.

Class 35 - 7% DB

Class 35 includes railway cars.

Class 36 - 0 CCA (ITA 13(5.2))

Class 36 contains 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% DB

Class 37 includes amusement park land improvements, buildings and equipment.

Class 38 - 30% DB

Class 38 includes marine vessels and oil and gas exploration equipment that perform excavation functions.

Class 39 - 25% DB (as of 1991)

Class 39 includes manufacturing or processing equipment acquired after 1988 and before Feb.26/92. Use class 43 if the equipment was acquired after Feb.25/92.

The CCA 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 CCA is available for purchases of class 39 manufacturing & processing machinery and equipment made before January 1, 1992.

Class 39/12 (computer equipment)

Class 39/12 (COMPUTER EQUIP) should be used for property which is included in class 39 for federal purposes and class 12 for Quebec only where the property is eligible for a 100% capital cost allowance rate.

Class 40 - 30% DB

Class 40 includes 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 40/12 (machinery/equipment)

Class 40/12 (MACHINERY AND EQUIPMENT) should be used for property which is included in class 40 for federal purposes and class 12 for Quebec only where the property is eligible for a 100% capital cost allowance rate.

Class 41 - 25% DB

Class 41 includes pre-1987 mining operations-related machinery and equipment, gas or oil well equipment and heavy oil processing equipment.

Class 42 - 12% DB

Class 42 includes fibre optic cables. This class also includes wire or cable used for telephone, telegraph or data communication for assets acquired on or after February 23, 2005.

Class 42/12 (optic fibre cables)

Class 42/12 (FIBRE OPTIC CABLES) should be used for property which is included in class 42 for federal purposes and class 12 for Quebec only where the property is eligible for a 100% capital cost allowance rate.

Class 43 - 30% DB

Class 43 includes manufacturing or processing equipment acquired after Feb.25/92.

Class 43.1 - 30% DB

Class 43.1 includes prescribed energy conservation property (CRCE). This class is broadened to include biogas production equipement and distribution equipment acquired on or after February 23, 2005.

Class 43.2 - 50% DB

Class 43.2 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 43/12 (machinery/equipment)

Class 43/12 (MACHINERY AND EQUIPMENT) should be used for property which is included in class 43 for federal purposes and class 12 for Quebec only where the property is eligible for a 100% capital cost allowance rate.

Class 44 - 25% DB

Class 44 includes patents and rights to use patented information.

Class 44/12 (patents)

Class 44/12 (PATENTS) should be used for property which is included in class 44 for federal purposes and class 12 for Quebec only where the property is eligible for a 100% capital cost allowance rate.

Class 45 - 45% DB

Class 45 includes 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% DB

Class 46 includes 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% DB

Class 47 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% DB

Class 48 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% DB

Class 49 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% DB

Class 50 increases the CCA rate for computer equipment, of a type that is currently described in Class 45 at a rate of 45%, to a rate of 55%. The CCA rate of 55% will apply to assets acquired on or after March 19, 2007.

Class 51 - 6% DB

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% DB

For eligible new computers and system software used in Canada, acquired after January 27, 2009 and before February 2011, a CCA rate of 100% applies, with no half-year rule.

Class 8/99 (work of art)

Includes a drawing, print, engraving, sculpture, painting or other work of art of same nature by a Canadian artist. The depreciation rate of works of art by a Canadian artist will be raised from 20% (formerly class 20) to 33 1/3% for Quebec purposes only. This change applies to works of art acquired after April 21, 2005.

UCCOpen   

This is the opening undepreciated capital cost or cumulative eligible capital. The amount entered will appear on schedule 8 (T2S(8)) or schedule 10 (T2S(8)(A)). Use [Alt-J] to enter different values for other jurisdictions.

Descript-UCC

Enter the description of the assets entered in this CCA-CLASS group to be printed on schedule 8 (T2S(8)) and schedule 10 T2S(8)(A).

If a capital gains reserve is being claimed on a disposal entered in this CCA-Class group, this description will print on schedule 13 (T2S(13)) in the capital gains reserves section.

ACB-Info   

Use ACB-Info to keep a database of the adjusted cost base of the asset(s) in this class.

When assets are disposed, if the class is liquidated, the total ACB amounts entered will be used to calculate recapture or terminal loss. Use [Alt-J] to enter different values for other jurisdictions.

ACB-Car   

The ACB-Car of an automobile in Class 10.1 can only be entered once since separate classes are required for each Class 10.1 automobile. Use [Alt-J] to enter different values for other jurisdictions.

Disposal

Use the keyword Disposal to enter the description of the asset disposed of in the year. This keyword will open the group of keywords necessary to enter all data relevant to dispositions.

Proceeds.cc   

Enter the gain (loss) on disposal of the property recorded in the corporation's financial statements in the Net-Inc-Add or Net-Inc-Ded keyword of the NetIncome group. DT Max will adjust net income on schedule 1 (T2S(1)) for the book gain (loss).

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

ACB-Disp   

If an ACB database was not entered for this class by using the ACB-Info keyword, use ACB-Disp to indicate the adjusted cost base of asset(s) disposed of.

If assets remain in the class and an ACB database was entered, ACB-Disp must be entered to indicate the adjusted cost base of the asset(s) disposed of. Next year, adjust the ACB database by removing asset(s) no longer in the class. Use [Alt-J] to enter different values for other jurisdictions.

Expense-Disp   

Use Expense-Disp to enter expenses associated with the disposition of assets entered in this class. The amount entered will be deducted from the proceeds of disposition for this disposal on schedule 8 (T2S(8)), to determine the amount of the CCA class reduction, and schedule 6 (T2S(6)), to determine the gain (depreciable property and land) or loss (land only), schedules. Use [Alt-J] to enter different values for other jurisdictions.

Date-Acq.CCA

Use the keyword Date-Acq.CCA to enter the date the asset was acquired.

DeemedDisp

Fed ITA sect. 111(4)(e) allows a corporation in the year of a change of control to designate dispositions of capital property. Thus, deemed capital losses arising on the change of control can be offset against capital gains on the designated dispositions. When"YES" is chosen here, DT Max will tick the "YES" box related to this question on schedule 6 (T2S(6)) and the Quebec CO-232 form. A separate schedule indicating which properties are subject to such a designation needs to be attached to the forms filed.

The following options are applicable for the keyword DeemedDisp.

DateDisp.CCA

Enter the date of the disposition in this group for your own information purposes only. This information is not used by DT Max.

PropertyType

PropertyType must be entered in the year of a disposal. The property disposed of must be classified on schedule 6 (T2S(6)) as real estate or other property, except when a loss on depreciable property occurs.

The following options are applicable for the keyword PropertyType.

GainOV.CCA   

GainOV.CCA will override the calculated gain on the property disposed of. Enter the gain (loss) on disposal of the property recorded in the corporation's financial statements in the Net-Inc-Add or Net-Inc-Ded keyword of the NetIncome group. DT Max will adjust net income on schedule 1 (T2S(1)) for the book gain (loss). Use [Alt-J] to enter different values for other jurisdictions.

EligAmount.c

Use EligAmount.c to enter the eligible portion of the calculated taxable capital gain or allowable capital loss related to the disposal entered in this group. This keyword is relevant if the corporation is a Canadian-controlled private corporation throughout the year; in this case, the corporation is subject to the 6 2/3 % refundable tax on investment income.

The eligible portion of taxable capital gains (allowable capital losses) increases (decreases) the amount of aggregate investment income which is subject to the refundable tax. See federal ITA section 129(3) for more details.

Muni-Address.ca

Use the keyword Muni-Address.ca to enter the municipal address of the real estate depreciable property.

More-Info

Use the keyword More-Info to enter additional address information. This will be line two of the address.

City.e

Use the keyword City.e to enter the city name. DT Max will not check the spelling of the city name.

Province.e

Use the keyword Province.e to select the province.

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

State.e

Use the keyword State.e to select the state.

Country.e

Use the keyword Country.e to select the country.

PostCode.e

Use the keyword PostCode.e to enter the postal code. DT Max will make sure that it is in the correct format and will always enter the alphabetic portions in upper case.

ZIPCode.e

Use the keyword ZIPCode.e to enter the zip code.

For-Post.e

Use the keyword For-Post.e to enter the foreign postal code.

Liquidate

Specify whether you have liquidated the class with the keyword Liquidate and enter the net proceeds.

The following options are applicable for the keyword Liquidate.

Yes

Gift.CCA

Specify whether this is a recapture resulting from a gift of capital property made in the year. 25% of the recapture will be used to calculate the limit on net income for donations.

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

No

Yes

Elig-Amt.CCA

Use the keyword Elig-Amt.CCA to enter the eligible amount of the gift.

ITC-Code

Use ITC-Code to indicate that an ITC is to be claimed on any current year addition(s) to this class and DT Max will automatically calculate the ITC on schedule 31 (T2038).

The following options are applicable for the keyword ITC-Code.

ITC codes related to non SR&ED property and SR&ED expenditures. The appropriate choice of ITC code will appear based on the CCA (SR&ED) class entered in the CCA-Class or SR&ED keywords.

Qualified property after 1994

For qualified property acquired after 1994, the rate at which the ITC is calculated is 10%.

Eligible expenditures for child care spaces

ITC-Addition   

Use ITC-Addition to enter current year additions to this CCA class which qualify for an ITC of the type entered in ITC-Code. Enter non qualifying ITC additions in the Additions keyword. Use [Alt-J] to enter different values for other jurisdictions.

Additions   

Enter any current year additions to this CCA class, indicated in the CCA-Class keyword, in the Additions keyword. The description entered here will also print on schedule 8 (T2S(8)) in its details of adjustments, additions and disposals during the year section.

If the addition is not subject to the half-year CCA rule, choose "NO" in the HalfYr-CCA keyword in this group. Use [Alt-J] to enter different values for other jurisdictions.

Addition-Car   

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

Enter the cost of the car excluding GST, PST and HST. The amount of GST, PST or HST paid on the cost should be entered in the keyword GSTPSTCost ($ 30 000 after 2001). Use [Alt-J] to enter different values for other jurisdictions.

Additions-Yr   

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

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

If adjustments to the capital cost of the addition are required such as for GST or PST rebates, enter the net amount, after adjustments, in the Additions keyword here. Use [Alt-J] to enter different values for other jurisdictions.

Class12-Ded

Use the keyword Class12-Ded to enter the Québec supplementary deduction on class 12 additions. A corporation may claim a supplementary deduction equal to 25% of CCA claimed for a taxation year. The total deduction has thus risen to 125%. The supplementary deduction is not subject to CCA recapture upon disposition of the property. The 25% additional deduction granted to corporations that do part of their business outside Quebec is reduced to 20%.

Class-Expiry

For Classes 13 and 14, DT Max needs to know the latest expiry date of the leases (Class 13) or assets (Class 14) held in these classes.

HalfYr-CCA

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

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

Yes

No

Reg-1101-5Q

Use the keyword Reg-1101-5Q to indicate whether or not the corporation is electing under regulation 1101(5q) of the ITA.

The following options are applicable for the keyword Reg-1101-5Q.

No

Yes

DateAcquired

The date when the assets are available for use is required information on schedule 31 (T2038) on its schedule of eligible investments and credits earned during the current taxation year.

Address.c

Use the keyword Address.c to enter the address where the qualified depreciable property entitled to a tax credit is located in Saskatchewan.

This information will appear on the Saskatchewan qualified depreciable property tax credit worksheet.

Location

The location (province) where the asset is used is required information on schedule 31 (T2038) on its schedule of eligible investments and credits earned during the current taxation year.

The following options are applicable for the keyword Location.

Newfoundland and Labrador

Newf. and Labrador - offshore

Prince Edward Island

Nova Scotia

Nova Scotia - offshore

New Brunswick

Quebec

Ontario

Manitoba

Saskatchewan

Alberta

British Columbia

PrevYrITC

DT Max will deduct the PrevYrITC entered here from the undepreciated capital cost balance of the property's class. For other property expenditures, the previous year's ITC will be added to net income on schedule 1 (T2S(1)) and the capital cost of the property will be reduced on schedule 8 (T2S(8)), except for Quebec purposes.

Where property is disposed of before the ITC is claimed on the property, the ITC adjustment is still required to the same CCA class in which the property belonged; see I and J of the Fed ITA 13(21) definition of "undepreciated capital cost".

Assets-Pred   

Use the keyword Assets-Pred to enter depreciable property that has been transferred from an amalgamated or wound-up subsidiary.

Assets entered here will not be subject to the half-year rule. Use [Alt-J] to enter different values for other jurisdictions.

GSTPSTCost

The GST, PST or HST on the allowable cost (up to a maximum of $30 000) of the car is added to class 10.1. Enter the lesser of the taxes paid on the purchase of the car and the taxes payable on a $30,000 car.

Use the keyword GSTPSTRebate to enter the amount of the GST, PST or HST rebate claimed on the vehicle.

GSTPSTRebate

The GST, PST or HST rebate on this addition will be deducted from its cost on schedule 8 (T2S(8)).

NAL-TransfGain   

Use NAL-TransfGain to enter the non-arm's length transferor's gain realized on the transfer of an eligible capital property to the corporation after December 20, 2002. Use [Alt-J] to enter different values for other jurisdictions.

ForgDbt80(7)   

Use this keyword to enter the gross amount of a reduction of a forgiven debt obligation as provided for in subsection 80(7). Use [Alt-J] to enter different values for other jurisdictions.

Ceased-CEC   

If this is the corporation's final return up to dissolution, DT Max will automatically enter the existing CEC balance amount on line 249 of federal schedule 10.

Otherwise, use the keyword Ceased-CEC to enter the amount of cumulative eligible capital for a property no longer owned after ceasing to carry on that business. Use [Alt-J] to enter different values for other jurisdictions.

CECA-Hist   

Use CECA-Hist in the year of a disposition of pre-July/88 eligible capital property in this group. When the cumulative eligible capital account balance after 75% of proceeds are deducted is negative, previous year claims adjust the addition to net income required. This is done to reflect the old system of cumulative eligible capital deductions; 50% of cost used to be eligible capital property and 10% was the allowable deduction rate, as opposed to the current 75% eligible amount and 7% deduction rate.

DT Max will calculate the amount added to net income. The addition will appear on schedule 10 (T2S(8)(A)) and schedule 1 (T2S(1)). You can use RecaptureOV to override the amount added to net income also.

The following options are applicable for the keyword CECA-Hist.

Adjustments made to the addition to net income when eligible capital property is disposed of and the cumulative eligible capital balance is negative after the proceeds are deducted.

CEC ded. claimed before July 1988

In the year of disposal, 1/2 of the total cumulative eligible capital deductions claimed in taxation years ending before July, 1988 is deducted from the negative cumulative eligible capital balance.

Neg. CEC in income before July 1988

In the year of disposal, the negative cumulative eligible capital balances that were included in income for taxation years ending before July, 1988 is added to the negative cumulative eligible capital balance, to the extent of 1/2 of the deductions (see above) taken in those years.

CEC ded. from income after June 30 1988

In the year of disposal, the total cumulative eligible capital deductions from income for taxation years beginning after June 30, 1988 is deducted from the negative cumulative eligible capital balance.

CEC reduction under subs. 80(7) - prior year

In the year of disposal, the total of all amounts which reduced the cumulative eligible capital in the current or prior years under subsection 80(7) is deducted from the negative cumulative eligible capital balance.

Amounts included in income (paragraph 14(1)(b))

Amounts included in income under paragraph 14(1)(b), as that paragraph applied to taxation years ending after June 30, 1988, and before February 28, 2000.

Previous years line T after Feb. 27 2000

Enter the amount from previous taxation years line T from Schedule 10 that have a year ending after February 27, 2000.

CECA-Transf   

Use the keyword CECA-Transf to enter the CECA transferred on amalgamation or wind-up of a subsidiary. Use [Alt-J] to enter different values for other jurisdictions.

Adjustment   

The adjustment entered here will be deducted from (if negative) or added to (if positive) the undepreciated capital cost of this class on schedule 8 or 10, (T2S(8) or T2S(8)(A)). Use [Alt-J] to enter different values for other jurisdictions.

Timber-Rate

For Class 15, capital cost allowance is calculated based upon the amount of cords or board feet of timber cut in the taxation year. Calculate the rate which DT Max will apply to the additions entered for this class; enter the capital cost allowance for assets in the opening balance in the Annual-CCA keyword.

Annual-CCA   

Enter the amount of the annual capital cost allowance for assets in the opening balance of this class. For additions to this class, DT Max will calculate the Annual-CCA to carry forward next year. Use [Alt-J] to enter different values for other jurisdictions.

Annual-CCA.n   

Enter the amount of the annual capital cost allowance for assets in the opening balance of this class and the number of months remaining in the life of the asset(s) in Annual-CCA. For additions to this class, DT Max will calculate the Annual-CCA to carry forward next year (based upon the amount and number of months) entered in the Additions keyword for classes 13 and 14. Use [Alt-J] to enter different values for other jurisdictions.

CCALimit   

Use CCALimit to limit the capital cost allowance or cumulative eligible cost amount to be claimed on this class. DT Max will claim the lesser of the limit entered and the maximum allowable claim calculated on schedule 8 (T2S(8)) or schedule 10 (T2S(8)(A)). Use [Alt-J] to enter different values for other jurisdictions.

UCCFloor   

Use UCCFloor to limit the ending UCC balance to a specific amount so that recapture on future disposals can be minimized. Use [Alt-J] to enter different values for other jurisdictions.

CCAClassOV   

Use this keyword to override the capital cost allowance or cumulative eligible cost amount claimed on this class. Use [Alt-J] to enter different values for other jurisdictions.

RecaptureOV   

Use this keyword to override the recapture of depreciation calculated. Recapture is calculated for all CCA classes and cumulative eligible capital, except for Class 10.1.

For Class 10.1, in the year of a disposal, no recapture or terminal loss is calculated. Instead, half-year CCA is claimed on the opening balance of the class, as is allowed by the income tax rules. Use [Alt-J] to enter different values for other jurisdictions.

TermLossOV   

Use this keyword to override the terminal loss calculated. Terminal loss is calculated for all CCA classes, except for Class 10.1.

For Class 10.1, in the year of a disposal, no recapture or terminal loss is calculated. Instead, half-year CCA is claimed on the opening balance of the class, as is allowed by the income tax rules. Use [Alt-J] to enter different values for other jurisdictions.

ITCLimit   

Use ITCLimit to limit the investment tax credit to be claimed on schedule 31 (T2038). DT Max will claim the lesser of the limit entered and the maximum allowable credit, calculated on schedule 31 (T2038).

The otherwise calculated annual ITC limit (3/4 of taxes otherwise payable plus 3% of the amount of income eligible for the small business deduction) no longer applies for taxation years commencing in and after 1994. Use [Alt-J] to enter different values for other jurisdictions.

PartVIITrans

Use PartVIITrans if the corporation owes part VII tax. This tax arose from common shares issued between July 1, 1982 and December 31, 1986 which allowed investors to claim a tax credit on the shares' cost.

ITC-CB-CCA   

Use ITC-CB here to limit the amount of the investment tax credit (ITC) for additions to this class to a prior taxation year carried back.

Use the ITC-CB group to enter the total ITC earned this year to be carried back. DT Max will then allocate the ITC carried back to the classes in which ITC-eligible additions were made. The ITC carried back will be claimed on the lower CCA rate classes first, unless limits are entered in the ITC-CB keyword here. This reduces the impact of the required reduction to the undepreciated capital cost in the amount of the ITC claimed; greater CCA claims will then be available to the higher CCA rate classes.

There are 3 prior year options for the keyword ITC-CB-CCA.

The following options are applicable for the keyword ITC-CB-CCA.

Prior years relevant to carryforwards available and other historical items.

1st prior year

2nd prior year

3rd prior year

ProvITCExp

These are expenditures eligible for provincial investment tax credits on SR&ED and new manufacturing and processing equipment purchased for use in the following provinces:

        Province        Effective date of credit/acquisition of equipment

        PEI             Jan.1/93  onward
        Manitoba        After March 11/92 and before July 1/96
        Saskatchewan    Apr.1/93  onward

The amount of eligible expenditures for M&P acquisitions will appear on schedule 5 (T2S-TC). Enter the amount of the allowable ITC on these expenditures in the ProvITC-OV keyword.

The following options are applicable for the keyword ProvITCExp.

Provincial credits which the corporation can claim.

Energy efficiency tax credit - N.S.

Risk capital ITC - N.W.T.

Risk capital ITC - Nunavut

M & P equipment - B.C.

M & P equipment ITC - P.E.I.

The Prince Edward Island manufacturing and processing investment tax credit can be claimed on new manufacturing and processing equipment acquired after Dec.31/92. Enter the amount of eligible expenditures incurred this year in the ProvITCExp keyword in the relevant CCA-Class group. Any unused credits can be carried forward seven years and back three years. To override the amount of credit claimed, enter the override amount in the ProvITC-OV keyword related to this credit. Carryback requests should be made directly on schedule 321 (T1092).

M & P equipment ITC - Manitoba

The Manitoba manufacturing investment tax credit can be claimed on new manufacturing and processing equipment acquired after Mar.11/92 and before July 1, 2003. Enter the amount of eligible expenditures incurred this year in the ProvITCExp keyword in the relevant CCA-Class group. Any unused credits can be carried forward ten years and back three years. To override the amount of credit claimed, enter the override amount in the ProvITC-OV keyword related to this credit. Carryback requests should be made directly on schedule 381 (T1089).

M & P equipment ITC - Saskatchewan

The Saskatchewan manufacturing investment tax credit can be claimed on new manufacturing and processing equipment acquired after Feb.16/95. Enter the amount of eligible expenditures incurred this year in the ProvITCExp keyword in the relevant CCA-Class group. Any unused credits can be carried forward seven years and back three years. To override the amount of credit claimed, enter the override amount in the ProvITC-OV keyword related to this credit. Carryback requests should be made directly on schedule 402 (T1128).

M & P equipment - Saskatchewan

The Saskatchewan manufacturing and processing tax credit, schedule 401 (T1101) can be claimed on new manufacturing and processing equipment acquired after Mar. 31/93 and before Jan.1/98. Enter the amount of eligible expenditures incurred this year in the ProvITCExp keyword in the relevant CCA-Class group. Any unused credits can be carried forward seven years and back three years. To override the amount of credit claimed, enter the override amount in the ProvITC-OV keyword related to this credit. Carryback requests should be made directly on schedule 402 (T1101).

M & P equipment ITC - N.S.

The Nova Scotia manufacturing investment tax credit can be claimed on new manufacturing and processing equipment acquired after Jan.1/97 and before January 1,2003. Enter the amount of eligible expenditures incurred this year in the ProvITCExp keyword in the relevant CCA-Class group. To override the amount of credit claimed, enter the override amount in the ProvITC-OV keyword related to this credit. Carryback requests should be made directly on schedule 344 (T1168).

SR&ED ITC - Newfoundland & Labrador

The Newfoundland & Labrador research and development tax credit can be claimed on expenditures incurred after Jan.1/95. DT Max will calculate the credit on schedule 301 (T1129).

SR&ED ITC - N.B. (before Jan. 1/03)

The New Brunswick non refundable research and development tax credit (schedule 360) can be claimed on expenditures incurred before January 1, 2003. Enter the amount of eligible expenditures in the ProvITCExp keyword, in the relevant CCA-Class group. Any unused credits can be carried forward seven years or back three years. Enter carryforwards in the ProvITC-CF group. To override the amount of credit claimed, enter the override amount in the ProvITC-OV.r keyword related to this credit.

SR&ED ITC - N.B. (after Dec. 31/02)

The New Brunswick refundable research and development tax credit (schedule 360) can be claimed on expenditures incurred after December 31, 2002. Enter the amount of eligible expenditures in the ProvITCExp keyword, in the relevant CCA-Class group. To override the amount of credit claimed, enter the override amount in the ProvITC-OV.r keyword related to this credit.

ProvCr-Alloc   

Use the keyword ProvCr-Alloc to enter tax credits on M&P equipment which have been allocated to the corporation.

The amount entered will appear on the provincial tax credit form for purposes of the calculation of the current year tax credit earned.

Use the keyword ProvITCExp to indicate which provincial tax credit form the tax credit allocation will apply to.

The following options are applicable for the keyword ProvCr-Alloc.

Sources of provincial tax credits or expenditures allocated to the corporation

Credit allocated from partnership

Choose this option to enter the amount of the current year provincial tax credit earned on expenditures incurred by a partnership to which the corporation belongs.

Credit allocated from trust

Choose this option to enter the amount of the current year provincial tax credit earned on expenditures incurred by a trust of which the corporation is a beneficiary.

Credit deemed as remittance of co-op

Credit from partnership after April 6, 2006 - sch. 402

Choose this option to enter the amount of the current year provincial tax credit earned on expenditures after April 6, 2006 incurred by a partnership to which the corporation belongs. This information is used for purposes of federal schedule 402.

Credit from trust after April 6, 2006 - sch. 402

Choose this option to enter the amount of the current year provincial tax credit earned on expenditures after April 6, 2006 incurred by a trust of which the corporation is a beneficiary. This information is used for purposes of federal schedule 402.

Partner prop. after 06/03/06 & before 01/01/08 - sch. 381

Choose this option to enter the corporation's share of qualified property acquired after March 6, 2006 and before January 1, 2008, as a member of a partnership.

Trust prop. after 06/03/06 & before 01/01/08 - sch. 381

Choose this option to enter the corporation's share of qualified property acquired after March 6, 2006 and before January 1, 2008, as a beneficiary of a trust.

Qual. prop. from partnership after Dec. 31/07 - sch. 381

Choose this option to enter the corporation's share of qualified property acquired after December 31, 2007, as a member of a partnership.

Qual. prop. from trust after Dec. 31/07 - sch. 381

Choose this option to enter the corporation's share of qualified property acquired after December 31, 2007, as a beneficiary of a trust.

CCALimit.tot   

When CCALimit.tot is used, DT Max will optimize CCA allocated amongst classes by first taking CCA on lower rate classes unless the CCALimit keyword was entered in a particular class.

Use CCALimit to limit the capital cost allowance or cumulative eligible cost amount claimed on a particular class.

DT Max will claim the lesser of any limits entered and the maximum allowable claim calculated on schedule 8 (T2S(8)). Use [Alt-J] to enter different values for other jurisdictions.