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Capital loss carry backward


BOBO2022
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Hi,

I have a capital loss for the year 2021 and would like to offset the capital gain for the prior three years (year 2018-2020) and not sure how to do it.  I tried to enter into capital gain history but the tax calculation result is the same as without it, which seems not right.  I have read some previous comments from the forum about T1A, and I am wondering if I will have to complete the T1A form manually and mail it out, and file my tax online or I will have to submit both the T1A and the tax filing by mail.  Hope some one can help me with this. 
 

Thanks in advance for the help and advices

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In the Interview section scroll down to the bottom and look for the carryforward section and tick off Losses of Prior Years. That will provide you with the data entry section.

Then scroll down in the list of forms (Index) look in the new section added under Losses of prior years, carrybacks. You will need to add form T1A - Request for Loss Carryback.

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  • 8 months later...

I have loss this year that can be carried back to offset the gains of the previous 3 years.

I filled of the amounts in the interview section but cannot find the form T1A. In the tax result I found there is T1A but with information of only 1 of the 3 years.

There is no change in tax owning or refund, with or without the declarations in the interview section.

 

MisterVinh

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Hello MisterVihn,

The CRA allows you to carry net capital losses back up to three years.  To carryback a capital loss, fill out section II on form T1A, Request for Loss Carryback. You do not have to file an amended return for the year to which you want the loss applied.

 

Applying net capital loss from previous years

 

You have capital gains in the current taxation year. However, you have sustained some capital losses in the previous years.

 

You can request both the federal and provincial governments to have these net capital losses carried over to be applied against the current year's capital gains.

 

To carry over these losses using the program, please follow these steps:

 

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

 

2-On the page appearing on the right, go to the group "Carryforward amounts and prior year information", check the box "Losses of prior years, carrybacks". Click "Next" at the bottom of the page.

 

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

 

4-On the screen generated on your right, go to the "Losses of other years" group and choose the line "Net capital losses of other years".

 

5-On the page that appears, enter the losses from previous years in the appropriate fields. You should first enter your capital gains.

 

The amounts will be reported to line 25300 of the federal returns and line 290 of the Quebec return.

 

The program will generate for the federal form "Applying net capital losses of other years to 2020" and Quebec form TP-729.

 

For more information, please visit the following CRA link:

 

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-253-net-capital-losses-other-years.html

 

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