We have identified an issue where the calculation on line 002 in column A of T2 Schedule 7 (S7) does not properly account for the capital gains reserve entered in Part 8 of Schedule 6 (S6).
To clarify, line 002 in column A of the S7 should include the taxable capital gain from S6. The taxable portion of the capital gains reserve opening balance (line 880 in Part 8 of the S6, multiplied by the capital gains inclusion rate) must be added to the calculation of line 002 under column A of the S7. The taxable portion of the capital gains reserve closing balance (line 885 in Part 8 of the S6, multiplied by the capital gains inclusion rate) must be subtracted from the calculation of line 002 under column A of the S7.
The latest versions of TaxCycle (14.0.55054.0 and 14.0.55072.0) do not incorporate lines 880 and 885 from Schedule 6 into the calculation for line 002 in column A of Schedule 7 as required.
If capital gains reserves are applicable (i.e., Schedule 13 is completed), override line 002 in column A of the Schedule 7.
We resolved this issue in the latest TaxCycle update.
