Donations, CCA & Invoice

T1
1

I converted over from Visual Tax .

  1. Is there a way for Taxcycle to roll forward the prior yr’s invoice amount otherwise I have to open up last yr’s file from Visual Tax to check amount billed which is time consuming.

  2. Is there or can there be an option to share the CCA 50% with co owner on the rental schedule? The CCA schedule would be easier to update and maintain if the additions were at 100% , then the CCA for the yr would be deducted at 50% after the 50% share of NI is allocated on the rental schedule. Otherwise you have to split the additions and disposals all the time 50/50 which is extra time plus have to remember the amounts on the CCA schedule are only 50%

  3. Is it possible to add a allocation % line like in the medical schedule to allocate 100% for example to either spouse.
    It appears you have to go to the optimization worksheet to override which spouse takes the donation. Sometimes the family net tax owing is the same either way but one owes more than the other so better to allocate or force donations on other return to reduce the higher person who owes more. would be so much easier than overriding the opti screen.

Thanks for the help

sl

2

Point 1 : It will roll forward the invoice amount from a Taxcycle file. I suspect that you will not see the roll forward this year and next year it will not be an issue.

Point 2: I am always torn about this. there are pros and cons to doing what you ask; however, a worksheet that can handle the amounts at 100% pulling the ownership percent of the assets to the respective cca schedules would be nice.

Point 3: I agree that there needs to be some easier ways to apply our professional judgement

3

I was advised regarding the donations to go the opti screen first then say no , then allocation boxes will show up
back on the donations worksheet to choose % to allocate. The flow Seems backwards to me, maybe have the % allocations there in first place and a check box to optimize or not. If say no or uncheck then add the % to which spouse you want , all on the donations worksheet.

I still hope a change is made to the way the CCA is handle on the rental schedule. Have the CCA at 100% for additions etc instead of having to take a 1/2 and remembering the UCC bal is 50% and not 100%. Then a box that says "share CCA with co owner " that defaults to 50% and can be overidden for the amount they want.

Thx for the comments

1 Like
4

On the T776 Statement, under “Details of other co-owners and partners”, change the Ownership is shared as: from Co-owner to “Partnership” and the software should react the way you are looking for it to. I generally use Partnership lets say between spouses, but co-ownership in situations where there are other owners who may wish to keep their own CCA schedule and take CCA independent of what other owners are doing.

1 Like
5

Slim I came over from visual tax three years ago I think you will like the change it just take time to get use to taxcycle but after three years it was worth it in my opinon.

6

I was going to do that but I did not want CRA to think it was a partnership as it wasn’t.

I don’t want the hassle for CRA to ask for the ACB calc etc of the partnership interest if shown on schedule as partnership.

Thx

7

Do whatever you feel comfortable with, however, the CRA does not receive enough information from your efile transmission to be able to know your ownership structure regardless of what you indicate in that box.

Whether you indicate co-ownership or partnership the data the CRA receives is identical if you are Efiling your returns. The Efile transmission does not distinguish between co-ownership and partnership. In fact, even if you have a co-ownership business structure, the format of the electronic transmission generally refers to the co-owners as partners anyway.

Here is a snippet of what the CRA received when a rental statement is sent to them over the internet. I snipped it before the actual rental and expense data. In my case, this particular structure is a “co-ownership” but even if I indicated “partnership” the data would be identical.

< sfd:RealEstateRentalData >< sfd:NAICSCode >531111< /sfd:NAICSCode >

< sfd:FiscalPeriodStartDate>2016-01-01 < /sfd:FiscalPeriodStartDate >
< sfd:FiscalPeriodEndDate >2016-12-31 < /sfd:FiscalPeriodEndDate >

< sfd:BusinessAddress >< comm:BusinessAddressStreetText > 6510 ANY STREET ANYTOWN,ON < /comm:BusinessAddressStreetText >
< comm:AddressPostalCode > X0X0X0 < /comm:AddressPostalCode >< /sfd:BusinessAddress >

< sfd:BusinessOwnershipPercent > 2500 < /sfd:BusinessOwnershipPercent >

< sfd:FinalBusinessYearIndicator > 2 < /sfd:FinalBusinessYearIndicator >

< sfd:PartnerCoOwnerData >
< sfd:PartnerName >< comm:GivenName > DEBBIE < /comm:GivenName >
< comm:FamilyName > SMITH < / comm:FamilyName > < / sfd:PartnerName >
< sfd:PartnerBusinessOwnershipPercent > 250000 < /sfd:PartnerBusinessOwnershipPercent >
< /sfd:PartnerCoOwnerData >

< sfd:PartnerCoOwnerData > < sfd:PartnerName > < comm:GivenName > KEVIN < /comm:GivenName >
< comm:FamilyName > SMITH < /comm:FamilyName > < /sfd:PartnerName >
< sfd:PartnerBusinessOwnershipPercent > 250000 < /sfd:PartnerBusinessOwnershipPercent >
< /sfd:PartnerCoOwnerData >

< sfd:PartnerCoOwnerData >
< sfd:PartnerName > < comm:GivenName > TONJA < /comm:GivenName >
< comm:FamilyName > JONES < /comm:FamilyName > < /sfd:PartnerName >
< sfd:PartnerBusinessOwnershipPercent > 250000 < /sfd:PartnerBusinessOwnershipPercent >
< /sfd:PartnerCoOwnerData >

8

It has always surprised me with all the line numbers they are not gathering more of the data.

Makes it difficult to a good job re recapture for newer clients with limited past records.

9

Ok thx for the headsup

Maybe I will change to partnership for ease and less screwing around so the CCA will be taken at 50% for now.
I will also check the printed version of the T776 when I change to partnership to see what is displayed

Thx

10

You seem above to be talking about spouses?
In which case it is quite likely to actually be a partnership?
If you have copies of the written co-ownership or partnership agreement (hopefully not a DIY) regarding those assets in your permanent working paper files, I would go with what I have in writing…