Compliance
Compliance Alert: What to Know About Changes to Forms and Reporting for 2026 Tax Returns
Recent updates to CRA forms and reporting obligations mean non-compliance risk is rising — here's how individuals and businesses can stay ahead.
By NomadicTax Research Team • 5-8 min read • March 19, 2026
## Key Form and Reporting Changes to Know
1. **Form T777 (Statement of Employment Expenses)**
- On **February 23, 2026**, CRA identified that the **Capital Cost Allowance (CCA) table** on Form T777 needed updates due to proposed reaccelerated investment incentive property (RIIP) rules under Bill C-15. ([canada.ca](https://www.canada.ca/en/revenue-agency/services/e-services/digital-services-individuals/efile-electronic-filers/efile-news-program-updates.html?utm_source=openai))
- CRA has asked taxpayers not to file returns claiming CCA using the old form until the revised version is issued. If you aren’t claiming CCA, the prior version of the form remains usable. ([canada.ca](https://www.canada.ca/en/revenue-agency/services/e-services/digital-services-individuals/efile-electronic-filers/efile-news-program-updates.html?utm_source=openai))
2. **Line 12700 – Taxable Capital Gains (Individuals & Trusts)**
- CRA’s “New for 2025” updates show proposed changes under the capital gains inclusion rate framework, expanded definition of eligible small business shares for deferral, cooperative conversions, etc. These are proposed changes; not all have been enacted. ([canada.ca](https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/personal-income/line-12700-capital-gains/whats-new-capital-gains.html?utm_source=openai))
3. **Alternative Minimum Tax (AMT) Adjustments**
- AMT calculations are changing under proposed rules for 2024 and subsequent years. Adjusted taxable income definitions are being modified, possibly altering AMT liability for individuals in higher income brackets. ([canada.ca](https://www.canada.ca/en/revenue-agency/services/tax/businesses/small-businesses-self-employed-income/whats-new-small-businesses-self-employed.html?utm_source=openai))
## Practical Compliance Tips
- **Delay Filing If Unsure**, particularly where forms are being revised. Incorrect filings may risk reassessments or penalties.
- **Watch for Final Legislation**: Many proposed changes are still draft (Budget 2024/2025), so check whether laws have passed before making irreversible decisions. ([canada.ca](https://www.canada.ca/en/revenue-agency/services/tax/businesses/small-businesses-self-employed-income/whats-new-small-businesses-self-employed.html?utm_source=openai))
- **Record-Keeping Is Crucial**: For new thresholds (e.g., $250,000 capital gains threshold), LCGE eligibility, cooperative conversions, etc., maintain documentation and valuations.
- **Software & Tax Preparers** must update systems to reflect new inclusion rates, revised forms, and thresholds; double-check that software reflects updated CRA guidance.
## Risk Management Example
A small business owner electing to use cooperative conversion in 2024 should ensure that all conditions are documented (qualifying cooperative status, shares sale conditions, timeline). Failing to meet any condition could lead to losing a capital gains deduction and being subject to full taxable gains at higher inclusion rates.
## Timeline to Stay On Track
| Date | What You Should Do |
|------|---------------------|
| Now – Mar/Apr 2026 | Monitor form updates (Form T777 etc.), get valuations organized, assess gains timing |
| Jan 1, 2026 | New inclusion rate takes effect—ensure structuring of disposals before or after with purpose |
| Filing season 2026 | Use correct versions of forms; ensure software or accountant implements changes |
**Bottom Line:** Compliance in the 2025–26 cycle hinges on using updated forms, meeting new thresholds, and understanding draft vs. enacted changes. Errors risk lost deductions or increased audits.