Is there a UCC and NBV reconciliation within the T2 module?
Yes, TaxCycle T2 now contains a worksheet called S8RecWS that allows you to reconcile changes in fixed assets during the corporation’s tax year.
First calculate the Net Book Value (NBV) of fixed assets per GIFI values, then use this information in the return to prove the amount change in the NBV. Use the File Reference column on the left to record references to the tax working paper file.
I am using TaxCycle T2 for the first time and noticed that proceeds of disposition entered on the schedule 8 did not flow through to the S8RecWS. I’ve had to do an override.
Can you check S8Asset form (F4, S8Asset and look for “Current year addition / disposition transactions” section) and make sure that there is a proceeds amount in the proceeds field (just above the cost field).
The proceeds in S8Reconciliation worksheet is referring to the gross / actual proceeds received (not lower of cost or proceeds).
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Have a great day!
Ah, I see. I had just entered the proceeds directly on the S8. Didn’t realize I needed to use the S8Asset.
Thanks and you have a great day too!
@jriley, to report a disposition, you can enter the lower of cost or proceeds directly in the S8 table (column 5), or, in S8Asset form, gross proceeds and ACB must be entered individually.