TaxTron T2 2024.2 Release notes
TaxTron supports the preparation and filing of federal T2 and Alberta AT1 corporate tax returns from January 1, 2022, to May 31, 2025.
1. Accelerated Capital Cost Allowance (CCA)
A new accelerated CCA rate of 10% under Class 1 is introduced for eligible purpose-built rental housing projects.
Applicable for projects starting construction after April 15, 2024, and before 2031, provided the property is available for use before 2036.
Investments in this class remain eligible for the Accelerated Investment Incentive (AII).
2. Immediate Expensing
A 100% first-year deduction is introduced for new property additions to Classes 44, 46, and 50.
The property must be acquired after April 15, 2024, and become available for use before 2027.
These investments will also benefit from the AII.
3. Capital Gains Inclusion Rate
For capital gains realized after June 24, 2024, the inclusion rate will increase to two-thirds.
4. Clean Technology Investment Tax Credit (CT ITC)
A refundable tax credit is available for capital investments in the adoption and operation of new clean technology (CT) property in Canada.
Eligible investments must be made between March 28, 2023, and December 31, 2034.
This credit is designed to encourage the use of innovative, environmentally friendly technologies.
TaxTron T2 2024.1 Release notes
1. Most corporations would have to file their return electronically for tax years starting after 2023.
2. Added a new functional currency Japanese Yen (JPY).
3. Added question 290 on ID to indicate if the corporation meets the definition of a substantive CCPC under subsection 248(1).
Revised calculation conditions in various sections of the T2 jacket to accommodate substantive CCPCs. The following sections will calculate when you answer Yes to the new Substantive CCPC question on the Info worksheet:
The section for “General tax reduction for Canadian-controlled private corporations” on page 5 now calculates when a corporation is a substantive CCPC.
The section for “General tax reduction” on page 5 is now excluded from the calculation if a corporation is a substantive CCPC.
Line 604 on page 8 of the T2 jacket now calculates when a corporation is a substantive CCPC.
4. Capital cost allowance (CCA)
Date of acquisition is now mandatory. Date will be used in following calculations:
If the property is Designated immediate expensing property (DIEP). If property is not DIEP, you can always select no.
Prescribed amount for zero-emission passenger vehicles is $59,000 or $61,000
To report on Schedule 572.
Relevant factor for Accelerated Investment Incentive properties (AIIP)
The immediate expensing deduction does not need to be prorated for a short tax year, as the immediate expensing deduction is already limited to the corporation's prorated immediate expensing limit for the tax year.
5. Canadian journalism labour tax credit
The 2023 Fall Economic Statement announced the government’s intention to increase the cap on labour expenditures per eligible newsroom employee from $55,000 to $85,000 and to temporarily increase the tax credit rate from 25% to 35% for a period of four years. These changes would apply to qualifying labour expenditures incurred after 2022. The rate would return to 25% for expenditures incurred after 2026. Transitional rules would apply to prorate these changes if an organization's tax year does not follow a calendar year. Calculations are updated to reflect these changes.
6. Ontario made manufacturing investment tax credit
A new 10% refundable corporation income tax credit has been introduced for qualifying investments of up to $20 million a tax year made by eligible corporations, for a maximum credit of $2 million a year. This applies to investments made after March 22, 2023, or before for buildings meeting specific criteria. Qualifying investments are expenditures for certain capital property included in capital cost allowance class 1 or 53. Eligible corporations are Canadian-controlled private corporations that have a permanent establishment in Ontario
Schedule 572 is added.
7. British Columbia farmers' food donation tax credit
This credit, which was set to end December 31, 2023, has been extended three years to December 31, 2026.
8. Saskatchewan Corporation Tax Calculation
Saskatchewan’s effective date for the increase rate of the lower tax rate of 2% is postponed to July 1, 2025. Schedule 411 is updated to reflect this change.
7. British Columbia farmers' food donation tax credit
This credit, which was set to end December 31, 2023, has been extended three years to December 31, 2026.
8. Saskatchewan Corporation Tax Calculation
Saskatchewan’s effective date for the increase rate of the lower tax rate of 2% is postponed to July 1, 2025. Schedule 411 is updated to reflect this change.
9. Return of fuel charge proceeds to farmers tax credit
Four new provinces (Newfoundland and Labrador, Nova Scotia, New Brunswick and Prince Edward Island) are added as designated jurisdictions. Schedule 63 is updated to reflect these changes.
10. Yukon business carbon price rebate
The Yukon business carbon price rebate also includes the Yukon mining business carbon price rebate. Schedule 444 is updated in accordance with the change.
11. Newfoundland and Labrador research and development tax credit
We have added schedule 301.
12. Newfoundland and Labrador direct equity tax credit
We have added schedule 303.
13. Newfoundland and Labrador resort property investment tax credit
We have added schedule 304.
14. Alberta AT1 Form Changes
Added JPY to line 41.
15. AT1 Schedule 3
Added new sections and fields for the Agri-processing Investment Tax Credit.
16. AT1 Schedule 12
Removed lines related to eligible capital deduction (011, 010, 012, and 013) as they are no longer applicable.
For further information please contact Taxtron Support at 416-491-0333 or visit www.taxtron.ca
