T5008 with a capital loss

[EMO]

I use the CRA Auto-fill to upload all documents that have been submitted to the CRA. All of the T5008 slips have been listed under Interest, investment income and carrying charges. Some of the slips, though, have a capital loss. My question is, Do I need to report this again under the Capital gains (or losses) section of UFile? Also, will the UFile program look at all the T5008 slips and automatically apply the capital loss against the capital gains or do I have to enter this somewhere? 

[clw]

The T5008 slips you downloaded will automatically populate Schedule 3, and calculate gain or loss. Make sure box 20, the ACB is not ‘0’.  If you have a previous year capital loss, you must indicate in the Interview section that you wish to apply it to this years gains.

[bzzz]

On 4/13/2021 at 8:56 AM, clw said:

The T5008 slips you downloaded will automatically populate Schedule 3, and calculate gain or loss. Make sure box 20, the ACB is not ‘0’.  If you have a previous year capital loss, you must indicate in the Interview section that you wish to apply it to this years gains.

Where exactly in the interview section do you choose that you want to use previous capital losses applied to this year's capital gains?

[newsbee]

If Ufile captures my capital losses as I fill in the details of my T5008, is it necessary to enter in capital losses of other years in the way described above or will Ufile apply capital losses to future years' capital gains until they are consumed? Or do I need to re-enter such past-year capital losses (that haven't been applied to capital gains already) each year as described above?

[Geo123]

Hello newsbee,

Ufile will apply capital losses to future years' capital gains until they are consumed - assuming they are entered (or calculated) and carried forward from the prior year(s).

[Craig Mc]

I have the situation where I had a gain last year and a loss this year. I want to carry the loss back to last year. I filled out the T1A Loss Carry back from with the amount required to erase last years gains. What I am not seeing is this amount showing up on line 25300 Net Capital Loss for Prior Years. I assume I am missing something

 

[mcmew]

I also have a question in regards to carry back losses.  I would like to use my 2022 losses to offset the gains I had in 2020 & 2021.  When entering the $ amount to applied for each year, is this amount supposed to be the value before or after the inclusion rate?  (ie. Cost $20,000 - Sale proceeds $10,000 = $10,000 loss.  Do I enter $10,000 or $5,000 (50% after inclusion rate)  Just wondering since Ufile doesn't show me if they are doing the inclusion calculation or not.

Any help would be greatly appreciated.

[clw]

After the inclusion rate, so 50%.

[mcmew]

3 hours ago, clw said:

After the inclusion rate, so 50%.

Thanks for the reply.  I'll trust you are correct.  Just curious how a Ufile user would be expected to know whether to use the before or after inclusion value?  The program doesn't give any description/definitions or instructions.  Using the incorrect value can make a big difference.     

[Geo123]

Hello mcmew,

UFIle will not permit you claim more than the allowable loss.  eg. Shares Loss of $10,000. (Loss to CB = $5,000).  If enter $10,000 then UFIle will limit this to $5,000

[Hosstyle]

On 4/15/2021 at 11:43 AM, Nawal said:

Hi @bzzz,  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.

Do not forget, you must have had a taxable capital gain that is generated on line 12700 of the federal return.

The program will report the net capital loss on line 25300 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 "Net Capital Losses" and, if applicable, Quebec form "TP-729 - Net Capital Losses".

Is there new instructions for this as I cannot find this at all on the current menu? 

[Curmudgeon]

It's there, follow exactly what is stated.

[Hosstyle]

figured it out. all good now