On Schedule 31 of the T2. Part 10 SR&ED expenditure limit for CCPC line A2 taxable income from the previous tax year is not pulling the correct figure

Part 10 of S31 Investment Tax Credit- Corporations line A2 states " deduct: taxable income for the previous tax year (line 390 in part 9) or $500,00, whichever is more. 

PY taxable income is larger than $500,000 but profile seems to be auto filling with $500,000. 

Answer

Hi, thank you for using Intuit ProFile Community

There is a change to the calculation in part 10 of s31 based on the 2019 federal budget. There was a change to the calculation in ITA section 127(10.2) as described in the following link:

https://www.canada.ca/en/revenue-agency/services/scientific-research-experimental-development-tax-incentive-program/federal-legislative-proposals-status-december-31-2016.html

ProFile will handle the calculation in part 10 based on the year end. The calculation is different for year ends before and after  March 19, 2019 (Budget day).

ProFile has implemented this change in ProFile version 2019.1.1

Hope this helps


 

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