Will B Posted March 10, 2021 Report Share Posted March 10, 2021 I loaded up the ufile for the 2020 tax season and noticed there was an auto generated T936 - CNIL (Cumulative Net Investment Losses) section that popped up with a value. I don't recall having a T936 filled out in the past, where does it pull this information from? Is there information on my online CRA account that it would of got the information? Quote Link to comment Share on other sites More sharing options...
TheTaxSmith Posted March 10, 2021 Report Share Posted March 10, 2021 Hello Will B. Basically it's a balance of all your investment incomes minus your losses. Cumulative Net Investment Losses. Over time if your losses and expenses are greater than your positive income from investments you will have a CNIL balance that affect the use of capital gains deductions. The software keeps track for you. That said you need to make sure it reconciles to the balance CRA shows on your account. You may see it stated on your Notice of Assessment. Quote Link to comment Share on other sites More sharing options...
gordon86 Posted April 3, 2022 Report Share Posted April 3, 2022 Hey TheTaxSmith, You never answered the question, where does the T936 come from? I have no investments and yet a T936 appeared in my Ufile auto fill this tax season. So where did it come from? Where is the software pulling this information from? How do I fix it? Regards, Gordon Quote Link to comment Share on other sites More sharing options...
Curmudgeon Posted April 3, 2022 Report Share Posted April 3, 2022 Check this listing of investment income and expenses that will trigger CNIL and since it's cumulative it will appear every year. https://help.hrblockonline.ca/hc/en-ca/articles/227762548-T936-Calculation-of-Cumulative-Net-Investment-Loss-CNIL- Quote Link to comment Share on other sites More sharing options...
gordon86 Posted April 3, 2022 Report Share Posted April 3, 2022 Thanks Curmudgeon, turns out it was interest earned from my bank. Which is on the list you linked to. Quote Link to comment Share on other sites More sharing options...
Jeff75 Posted May 3, 2022 Report Share Posted May 3, 2022 So I have the same situation. I don't have unregistered investments, but do have an investment property. A CNIL balance showed up but I wasn't sure exactly what it meant. Now I see that it can be used to reduce a capital gain on the sale of an investment property. It's still not clear how the software generated that CNIL total. For me, it's a positive number in ufile, but since it's a CNI "Loss" does that mean it's really a negative and will REDUCE my capital gains if I apply it? Over the years the income has exceeded the expenses on my investment properties, so there shouldn't be a cumulative loss. I'm not sure how the software generated this number, and I don't trust it to be correct. I looked at my CRA "my account" and don't see the CNIL listed there. Any insights? Quote Link to comment Share on other sites More sharing options...
TheTaxSmith Posted May 3, 2022 Report Share Posted May 3, 2022 When you first set up your file using Ufile did you include carryover balances such as your CNIL balance? If you did was it done correctly? You should be able to look up your CNIL balance online with CRA. If not ask them by phone for a printed history and balance. If your CNIL balance is in negative territory, meaning prior year expenses exceed prior year earnings the availability for the qualified capital gains deduction will be limited. CNIL will not affect capital gain claims, only the potential deduction against them. Most people will never be able to take advantage of qualified capital gains deductions. The fact that you have an investment property means you have an annual adjustment to your CNIL balance. So go back and look at the history and reconcile the CNIL in your Ufile with the one that CRA has on file. Quote Link to comment Share on other sites More sharing options...
AlyW Posted March 31, 2023 Report Share Posted March 31, 2023 Log in to your CRA MyAccount. Under Tax Returns, scroll down the page and click on "View Carryover Amounts." In my case, it came from my previous year rental income. Quote Link to comment Share on other sites More sharing options...
Davi Posted March 15 Report Share Posted March 15 On 3/31/2023 at 2:16 PM, AlyW said: Log in to your CRA MyAccount. Under Tax Returns, scroll down the page and click on "View Carryover Amounts." In my case, it came from my previous year rental income. Thank you. I see I have positive numbers shown as Net Investment Gain/Loss , for 2022, 2020, 2019. Questions pls, 1. where CRA gets these number? 2. To file my tax return for 2023 with Ufile, should I put the number from 2022 into "total federal NIL income" or "total federal NIL expense" or neither? Quote Link to comment Share on other sites More sharing options...
Geo123 Posted March 15 Report Share Posted March 15 Hello Davi, DEFINITION: Your CNIL is how much more your investment expenses were, compared to your investment income, in prior years. It's used to calculate the capital gains deduction (as opposed to a Net capital loss that can be applied to a capital gain). It’s used to calculate the capital gains deduction that you can claim on the sale of qualified capital property. The CNIL balance becomes important when you claim the **capital gains deduction on eligible farming and small business investments only. ** It does not apply to all capital Gains** If your cumulative investment expenses exceed your cumulative investment income, the CNIL may reduce the allowable amount of your capital gains deduction. Which capital gains are eligible for the capital gains deduction? The capital gains deduction can be applied against taxable capital gains included in 2022 income that arose from: dispositions of qualified small business corporation shares dispositions of qualified farm or fishing property reserves brought into income in 2022, from either of the above https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-25400-capital-gains-deduction/which-gains-eligible.html Quote Link to comment Share on other sites More sharing options...
MBB Posted April 9 Report Share Posted April 9 Hi, I went to the CRA website, retrieved all the CNIL info and inputted it into Ufile. It shows the inputs on information sheets, but does not use it on Schedule 3, as it had in previous years. What is happening? Quote Link to comment Share on other sites More sharing options...
Geo123 Posted April 9 Report Share Posted April 9 Hello MBB, T936 - CNIL (cumulative net investment loss) balance DEFINITION: Your CNIL is how much more your investment expenses were, compared to your investment income, in prior years. It's used to calculate the capital gains deduction (as opposed to a Net capital loss that can be applied to a capital gain). It’s used to calculate the capital gains deduction that you can claim on the sale of qualified capital property. The CNIL balance becomes important when you claim the **capital gains deduction on eligible farming and small business investments only. ** It does not apply to all capital Gains** If your cumulative investment expenses exceed your cumulative investment income, the CNIL may reduce the allowable amount of your capital gains deduction. Which capital gains are eligible for the capital gains deduction? The capital gains deduction can be applied against taxable capital gains included in 2022 income that arose from: dispositions of qualified small business corporation shares dispositions of qualified farm or fishing property reserves brought into income in 2022, from either of the above https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-25400-capital-gains-deduction/which-gains-eligible.html Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.