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Working with Income Statements

Updated: 2023-09-19

All income statements in TaxCycle are multi-copy forms. This allows you to prepare a separate form if the client has two businesses.

The Prepare sidebar contains a group for Income Statements, including:

Working with Form Sets

When you start working on an income statement, TaxCycle creates a group of related forms that support the statement.

To create a new income statement form set:

  1. Double-click on any form icon with a green plus sign to start a new copy of the form. Or type the form name in the F4 Fast Find search box and press Ctrl+Enter.
    New Form Icon
  2. When you enter the business, farm or boat name, or the rental address, a form set with that entity name will appear in the sidebar. For example, once you enter a rental address name on a new T776, the related CCA schedules and asset worksheets appear in the list of forms, along with the statement summaries.

TaxCycle also uses information from other forms and worksheets complete income statements, including the motor vehicle expense worksheet and slips that report business or commission income, like contract payments reported on the T5018. The forms are not part of the form set as they can contain information used elsewhere in the file.

Screen Capture: Income Statement Form Sets in the Prepare Sidebar

CCA and Asset Forms

  • Asset manager, where you enter and track each asset in detail as a separate item. For example, T2125Asset.
  • CCA worksheet that contains the standard CCA table for the income statement. For example, T2125CCA. Information entered in the asset manager flows into this worksheet.
  • CCA Claim worksheet, where you can set options for how to claim CCA in the return, such as the claim order or options for adjusting the claim for specific classes or incentives.
  • Asset Summary that lists all the assets entered in the asset manager. For example, T2125AssetSummary.

Sharing With a Spouse or Partner

You can share most income statements with a spouse or partner. Look for the section on the statement that allows you to allocate a percentage share to the spouse as a partner or co-owner.

  1. Check the box include (person's name) as a partner in the business.
  2. Enter the percentage of ownership for the spouse to calculate the spouse’s share of net income automatically and add the business statement set to the spouse’s list of forms.
  3. If you are also preparing the return for a co-owner/partner who is not a spouse, you can use Smart Copy/Paste to copy the statement to a different return and correctly allocate the net income.

Screen Capture: Details of other partners

Income Statement Summaries

Income statement form sets include two- and five-year summaries. For example, each T2125 form has a related T21252YearSummary and T21255YearSummary summary.

  1. The current-year column, furthest to the left, contains amounts that flow from the income statement. The blue arrow in the top left of the field indicates that these fields have links to jump to the form with the source amount. Press the F6 key or double-click on the field to jump to the source.
  2. On both summaries, TaxCycle populates the prior-year columns when it carries forward the return to the current year.
  3. On the five-year summary, you can also manually enter amounts in these fields if need be.
    Screen Capture: T21255YearSummary
  4. The two-year summary is a variance summary where you can flag lines for follow up if they vary from the prior year by more than a certain percentage or amount.
    Screen Capture: T21252YearSummary