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How claim "interest paid on a loan to earn investment" Quebec Tax


websters111

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Hi, I entered a dollar value (example: 300) into the field of <interest paid on a loan to earn investment> and it did not change the Quebec Tax Summary (incorrect), but it changed The Federal Tax Summary (correctly). (i.e. the taxable income did not reduce for Quebec (line 299), but did reduced for Federal (line 26000). I have updated the software with the latest patch.

Can you tell me if there is a special field I can enter the value (300) to report my interest paid?

Thank you

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To clarify: It is part of the Carry charges and expenses form, after the stocks report.

1 hour ago, websters111 said:

Hi, I entered a dollar value (example: 300) into the field of <interest paid on a loan to earn investment> and it did not change the Quebec Tax Summary (incorrect), but it changed The Federal Tax Summary (correctly). (i.e. the taxable income did not reduce for Quebec (line 299), but did reduced for Federal (line 26000). I have updated the software with the latest patch.

Can you tell me if there is a special field I can enter the value (300) to report my interest paid?

Thank you

 

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Hello @websters111 Carrying charges and interest expenses

To report the carrying charges and interest you paid to earn investment income, please follow these steps:

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

2. On the right-hand side page, go to the "Investment income and expenses" group, check the box "Interest, investment income and carrying charges/interest expenses/CNIL (T3, T5, T4PS, T5008, RC359)" and click "Next" at the bottom of the page.

3. Return to the "Left side menu on the Interview tab" and select "Interest, investment income and carrying charges".

4. On the right-hand page, choose the "Income" group you have earned and enter the income you have earned, and on which you paid interest or financial expenses.

5. Then, in the "Expenses" group, click on the "plus" sign icon to the right of the line "Carrying charges or interest expenses (line22100)". Complete this page according to your situation.

The program will carry over this amount on line 22100 of your federal return and, if applicable, on line 231 of your Quebec tax return.

If you have already reported the interest charges on a T5013, do not claim them here again.

Note for residents of Quebec: the amount of investment expenses you deduct cannot exceed your investment income. If the fees exceed your investment income, the program will calculate an adjustment to the investment expenses in line 260 of your Quebec return, by completing Schedule N.

We suggest you visit the following link:

https://www.revenuquebec.ca/en/citizens/income-tax-return/completing-your-income-tax-return/completing-your-income-tax-return/line-by-line-help/201-to-260-net-income/line-260/

For more information about this subject, please consult the following links:
For CRA :

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-221-carrying-charges-interest-expenses.html

For Revenu Quebec:

https://www.revenuquebec.ca/en/citizens/income-tax-return/completing-your-income-tax-return/completing-your-income-tax-return/line-by-line-help/201-to-260-net-income/line-231/

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28 minutes ago, Carine14 said:

Hello @websters111 Carrying charges and interest expenses

To report the carrying charges and interest you paid to earn investment income, please follow these steps:

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

2. On the right-hand side page, go to the "Investment income and expenses" group, check the box "Interest, investment income and carrying charges/interest expenses/CNIL (T3, T5, T4PS, T5008, RC359)" and click "Next" at the bottom of the page.

3. Return to the "Left side menu on the Interview tab" and select "Interest, investment income and carrying charges".

4. On the right-hand page, choose the "Income" group you have earned and enter the income you have earned, and on which you paid interest or financial expenses.

5. Then, in the "Expenses" group, click on the "plus" sign icon to the right of the line "Carrying charges or interest expenses (line22100)". Complete this page according to your situation.

The program will carry over this amount on line 22100 of your federal return and, if applicable, on line 231 of your Quebec tax return.

If you have already reported the interest charges on a T5013, do not claim them here again.

Note for residents of Quebec: the amount of investment expenses you deduct cannot exceed your investment income. If the fees exceed your investment income, the program will calculate an adjustment to the investment expenses in line 260 of your Quebec return, by completing Schedule N.

We suggest you visit the following link:

https://www.revenuquebec.ca/en/citizens/income-tax-return/completing-your-income-tax-return/completing-your-income-tax-return/line-by-line-help/201-to-260-net-income/line-260/

For more information about this subject, please consult the following links:
For CRA :

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-221-carrying-charges-interest-expenses.html

For Revenu Quebec:

https://www.revenuquebec.ca/en/citizens/income-tax-return/completing-your-income-tax-return/completing-your-income-tax-return/line-by-line-help/201-to-260-net-income/line-231/

Thank you. I have done exactly as suggested and read the government documentation. 

There is still an issue with the summary. 

The expense impacts taxable income line 276 as well for the Quebec Taxes. which further impacts line 279. Line 279 as stated to add lines 275 through 278.  But my Ufile2020 version did not add the new numbers I entered as part of my expense. I put 0 and even 300 (expense) and there is no effect.  Line 276 is the adjustment of deductions for the quebec taxes. 

Can you look into this? Cheers

 

 

Thanks 

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