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How do you report restricted farm loss on Ufile?


John911

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Hello John911,

If farm losses exceed $32,500 and the farmer is part-time, only $17,500 can be claimed as a farm loss against 
income for the year. If farm losses are less than $32,500, a formula must be used to determine the loss that can 
be claimed. 

In the Interview >> Self-employment income
T2042C - Farming income (cash basis) +
T2042 - Farming income (accrual basis) +
Was farming the main source of income +?  < - - - SELECT “+”
(When farming is not the main source of income, all farming losses are restricted.
A restricted farm loss occurs when farming is not your main source of income.)
 

Indicate that farming was not the main source of income?  Yes  < - - - -YES = THAT IS WAS NOT

>>T2042 :
Your net income (loss) : Amount 5C  minus  line 9945
(enter this amount on line 14100 of your income tax and benefit return)   [9946 ]    [$amount]

 
>>Worksheet (Federal) 
Line 14100 – Calculation of net farming loss


Farming loss for the year               [$amount] a
$2,500 plus the lesser of:
(i)1/2 ($loss amount) -2,500.00)    [$amount]
 (ii) b                                               [$amount]
Deductible Farming Loss (lesser of lines a and b)  [$amount]  c
Restricted Farm Loss to carry forward (line a minus line c)  [$amount]    d

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