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Example:

If I had a net capital gain of $1,000 in 2012 then 50% x $1,000 = $500 would have been added to my 2012 net income and taxed. 

 

If I had a net capital loss in 2013 of $2,000 then I would want to carry back a portion of this to 2012.  In the "Loss Carryback" section of UFile there is an "Amount of net capital loss to be applied" section.

 

Questions:

1) Using the above example, should I carry back $1,000 or $500 in this section for 2012?

2) Will the carryback be reflected in my 2013 tax return as a credit immediately or will CRA do an assessment after I file my tax return?

 

Thank you.

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Line 253 - Net capital losses of other years - First time entry
 

If you have net capital gains for the current tax year and would like to utilize net capital losses of prior years to offset the net capital gains, please follow the steps below:
 

(Available capital losses are shown on the CRA's Notice of Assessment or Notice of Reassessment for the previous taxation year.)
 

1- In the "QuikClik Navigator", located on the left-hand side of the screen, click on "Interview setup". Check the box for "Losses of prior years, carrybacks" and then click "Next" at the bottom of the page.

2- In the "QuickClik Navigator", click on "Losses and carrybacks".
 3- On the new page, select the fifth option "Net capital losses of other years".

4- Enter your net capital losses of prior years.

5- If you wish to limit the amount of capital losses applied to the current year, enter the amount on the last line at the bottom of the page.
 

The program will report the net capital loss on line 253 of your federal return and on line 290 of the Quebec return. To see the details of the application of net capital losses, click on the "Tax return" tab and select federal form "Applying Net Capital Losses of Other Years" and, if applicable, Quebec form TP-729 "Carry-Forward of Net capital Losses".

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Hello Gabriel, 

 

Thank you for your response but I've seen this answer on this forum already and unfortunately it doesn't answer the question I have.

 

I know where to enter the information to carry back a capital loss using UFile, I'm just not sure what number I should enter. 

 

If I made a capital gain of $1000 last year then I was taxed at 0.5 x $1000 x tax rate.  If I had a capital loss of $1000 in 2013 then I should be able to carryback the loss to last year to undo the amount that I was taxed last year.  Using this example, do I carryback $500 or $1000 for a capital loss in 2013?

 

 

Also, entering these values does not effect the outcome of my return.  I am therefore assuming that CRA deals with after I submit my return?

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Sorry for my first answer which is actually the opposite of what you were asking.

 

The amount of loss in 2013 you designate to offset your taxable gain in 2012 is a net capital loss.

 

In your example, you carry back $500.00.

 

Here is the general procedure to follow:
 

1- In the "Interview setup", located on the left-hand side of the screen, click on "Interview setup".

2- On the right-hand side of the screen, in the "Income" section, check the box "Capital gains (or losses)" and in the section "Deduction and credit", check the box for "Losses of prior years, carrybacks" and click on "Next" at the bottom odf the screen.

3- Return to the "QuikClik Navigator" and select the line "Losses and carrybacks";

4- In the screen on your right choose "T1A - Request for Loss Carryback (loss which occured in 2013)" and select the type of carryback that you wish to apply from the drop-down menu, along with the corresponding year.
 

The program will generate federal form T1A as well as and Quebec form TP-1012.A.

 

The request for carryback does not affect the return.

 

Form T1A is transmitted as part of the electronic file for the T1 return.
 

Quebec residents will have to print form TP-1012.A, sign it and mail it SEPARATELY from other documents.
 

The CRA and Revenu Québec will re-assess the corresponding year's tax returns based on the T1A or TP-1012.A sent and they will issue you a notice of reassessment at a later date.

 

Notes:

In your case, the type of carry back is "Net capital loss for carryback".

 

When you have losses from previous years, your Notice of assessment always shows the net amount.

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