How to apply capital loss in other years recorded by CRA for 2019 to capital gain in 2020?

[Vinh]

Numbers below used as illustration only.

I have recorded the “unused capital loss” in the T936 CNIL with $20,000 under “Total federal CNIL income for year 2019”. The “Total federal CNIL expense for year 2019” is 0. However after reporting the capital gain of “$10,000” in the form T5008, I didn’t see the capital offset or reduce by the capital loss under “Review” section.

How to get the capital gain offset by the unused capital loss in UFile 2020?

I noticed that my tax report already have forms T936, Capital Gain History under "Capital Gain (or Losses) and ABIL", "Capital loss carryforward".

Which forms should be filled out to get capital loss from other years applied to 2020 Tax year?

Thank you.

[Vinh]

Perhaps opening a "Losses of other years carryback" -> "Net capital loss of other years" to enter the amount of "unused capital loss" recorded in a Notice of Assessment worked. However, it is limited to the maximum of $3000 of unused capital loss per year.

[PeterKC]

[Nawal]

Hi @PeterKC, in your wife's file, follow these steps:

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

2 - On the right-hand side of the screen. Go to the "Carryforward amounts and prior year information" group, check the box for "Losses of prior years, carrybacks" and then click "Next" at the bottom of the page.

3- Return to the "Left side menu on the Interview tab", select "Losses of prior years and carrybacks".

4- On the page appearing on the right, click on the icon of the plus sign "+" located on the right of the line "Net capital losses of other years".

5- On the page entitled "Net capital losses of other years" and enter your net capital losses of previous years.

6- 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.

[JU2006]

Has anyone managed to get this pathway to work yet?  Despite filling out the available net losses total, the tax return on line 253 is not updating to reflect this information.

[Blair R]

No - I'm having same problem - capital losses listed from prior years are not reducing capital gain from 2021 - 

[JSc]

On 3/16/2022 at 2:44 PM, Blair R said:

No - I'm having same problem - capital losses listed from prior years are not reducing capital gain from 2021 - 

Go to your TAX RETURN review and then scroll down the left side menu.  Do you an Item called 'Net Capital losses other years' ? It's on this page that I see that the system has correctly applied my carryforward amount (loss) to offset my current year gain.

Note: I used the CRA autofill feature so it pulled this info in automatically.  If you didnt use that feature then I would think you need to add that info in as described by Nawal further up this page. Hope this helps.