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mammasan

Capital gains and ABIL

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This new section has appeared on this year's UFile Online and wondering if I have to do anything and where did the $$$$ amounts come from? Thank you.

 

Capital gains inclusion rate for tax year 2000

50%

 

Other capital gain history

Other capital gains (losses) 2015 $$$$

Ineligible taxable capital gains included in CNIL $$$$

 

 

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Hi,

 

If you made a capital gain, but have not received the whole proceeds from this gain, you must indicate the reserve on disposition of capital gain that you want to use for the current year.

To declare this reserve on disposition, follow the procedure below:

1- In the "Left side menu on the Interview tab", select "Interview setup".

2- On the right-hand side of the screen, go to the "Investment income and expenses" group, check the box for "Capital gains (or losses) and capital gain history" and click "Next" at the bottom of the page.

3- Return to the "Left side menu on the Interview tab" and select "Capital gains (or losses) & ABIL".

4- In the screen on the right, select the appropriate item, and in the new page that is generated, enter the total proceeds of disposition of the property.

5- On the line for "Reserve on disposition", enter the amount of the capital gain reserve desired for the taxation year.

The program will generate federal Schedule 3 and federal Form T2017.

For more information regarding the reserve on disposition, please consult the following links:

http://www.cra-arc.gc.ca/E/pub/tg/t4037/README.html

http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns248-260/254/menu-eng.html

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Hi Gaetan,

 

I had capital gains dividends in 2014 and 2015 that I reported off an issued T5. On my CRA NOA from 2015 it does indicate I have unused net capital losses from other years. No clue from where because I was not responsible for past finances. I am trying to learn over the years so I will not be in these kinds of situations again.

 

1I am asking why did this section appear on the left side of my screen with this information already filled in and should I just leave it there?

 

2Is this area just for information purposes so I could see these figures in future years?

 

3) How should I handle the unused net capital losses?

 

Capital gains inclusion rate for tax year 2000

50% <--never entered this percentage

 

Other capital gain history

Other capital gains (losses) 2015 $$$$  <-- there is an amount filled in here which I did not enter

Ineligible taxable capital gains included in CNIL $$$$ <-- there is an amount filled in here which I did not enter

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Hi Bretonix,

 

The name of the section that appeared is called Capital gains and ABIL.

 

And under that I see 2 other sub sections:

 

Capital gains inclusion rate for tax year 2000

Inclusion rate for the year 2000 50% <--never entered this percentage

 

Other capital gain history

Other capital gains (losses) 2015 $$$$  <-- there is an amount filled in here which I did not enter

Ineligible taxable capital gains included in CNIL $$$$ <-- there is an amount filled in here which I did not enter

 

The amount that UFile entered in the other capital gains history is related to my capital gains dividends I entered from my 2015 T5.

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The capital gains dividends you entered in Box 18 of your T5 were reported as capital gains in Schedule 3, line 174.

Then, you probably had a positive amount on line 197, so 50% (the inclusion rate) were reported on your T1, line 117 as taxable capital gains.

 

UFile in turn prepared all the data that needs to be carried over from year to year.

 - the inclusion rate for year 2000

 - other capital gains history

 

The inclusion rate for 2000 is of interest to persons who had capital gains or losses in that year.

There were three inclusion rates, from 75% to 66.67% to 50%.

Depending upon the date(s) on which a person disposed of securities in 2000 the inclusion rate would be one of these values or a weighted average.

For more information, please consult the Capital gains publication;

http://www.cra-arc.gc.ca/E/pub/tg/t4037/t4037-16e.pdf

 

In your 2016 Tax return package you should see the internal charts Capital gains history, federal and Quebec.

 

Should you want to check the completeness of your historical information, register to the CRA My Account.

All the data is available for you.

The information is not available in Revenu Québec My Account.

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