I am reporting this topic in “Bug Reports” because there is an inconsistency between the T2 Guide and how TaxCycle is handling the newest instructions. This may not be a bug in the software, it could very well be a bug or outright error in the latest version of the T2 Guide. The T2 Corporation Inc…

@snoplowguy So, I finally heard back from the CRA. In the fall update, they will ask software vendors to update to require line 295 in S1 to be a “zero value line number”. However, I let them know that the timing is late and that we will be making changes to TaxCycle T2 as soon as possible to allow…

@snoplowguy I appreciate your post about this. I have been following the discussions on how to report COVID19 assistance in tax returns in various forums/groups. It’s interesting how the T2 guide suddenly comes up with a new take on this. Hopefully, they will stick to this one permanently. One thing…

Thanks for looking into this Steven. I’m not sure what is so special about Covid assistance as opposed to other income that the CRA feels it needs to have its own home on the Schedule 1. Presumably they want to see it on the Schedule 1 to make it easy to cross reference those amounts with their ow…

Line 9980 is unrealized gains and losses. Do you really want to post Covid Assistance there?

Well… not at all, but for lack of any guidance… and CRA has specified not to include Covid Assistance on line 8242. Lets say I have a client that has received $40,000 in CEBA and by their corporate year end has paid back $30,000. For all intents and purposes they have essentially qualified to have…

Makes sense. So where do you put CEWS if we can’t put it on 8242?

It’s odd that they slipped this change into the T2 guide after many of the T2 returns for periods in which these subsidies were received have already been filed.

“The only thing they haven’t received is a certificate or statement of account showing they no longer owe the $10,000. Presumably this official notification of zero owing will come at some point during 2021 or 2022. In my mind this $10,000 could be considered an unrealized gain, as the actual incom…

I believe that the loan agreement says that the $10,000 is forgiven only when the $30,000 is paid back.

[image] Rein: So where do you put CEWS if we can’t put it on 8242? I am crediting Payroll Expense… again… not an optimal solution. If I was going to add the CEWS subsidy on the schedule 1 I still would need to manually subtract that same amount from line 395 in order to add it on line 295 ot…

@snoplowguy Page 26 of the new version of T4012-20e now says: "Use Schedule 125 to report income from the COVID-19 programs. Include the amount you received for the tax year on line 8242 – Subsidies and grants."

T2 Schedule 1 - Covid Assistance Inconsistencies with CRA - #19 by BertMulderCGA - Bug Reports

Topic		Replies	Views	Activity
Covid Assistance T2	32	5404	June 25, 2021
CEBA Loan Forgiveness Tax Topics	36	7629	April 10, 2021
Taxcycle wishlist Product Suggestions	31	2447	June 18, 2020
T1 (and maybe other modules) suggestions 2021 edition T1	107	3141	June 11, 2021
COVID-19 & Pandemic Tax Topics	46	3666	March 21, 2020