Prior Year Capital Losses

[Steelboy16]

Hi, I had approx $10k in capital losses in Dec 2022 which I did not enter in my 2023 Taxes when I filed (I had no capital gains so did not think of it at the time).  Can I enter those losses in 2023 tax filing (or go back and enter them in my 2022 even though it was already filed)?

I don't have any capital gains this year either but want to know how to get them in my CRA tracking for future years.

Thanks

[Geo123]

Hello Steelboy16,

For Line 25300 – Net capital losses of other years (stocks etc) :

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, to use the loss carryforward 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".

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-25300-net-capital-losses-other-years.html

 

Line 25200 – Non-capital losses of other years (Business, Rental)

Non-capital loss for a particular year includes any loss incurred from employment, property or a business and is applied against current year income.  If no income in the year it can be carried forward or carry back for three years.

>> Losses of other years and loss carryback

*Non capital losses of other years “+”  < - - - HERE

*Restricted farm losses of other years “+” 

*Farming losses of other years “+”

*Fishing losses of other years “+”

*Allowable business investment losses (ABIL) of other years “+”

*Net capital losses of other years “+”

*Precious or listed personal property losses (LPP) of other years “+”

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-25200-non-capital-losses-other-years.html

[Steelboy16]

Thanks, I understood and completed up to Step 5.  I have no capital gains for 2023 so will it just automatically carry-over the amount I entered for past losses forward or is Step 6 telling me to do something additional to ensure it carrys forward.

 

[Nick1108]

Tku Geo123, your answer is very helpful. I've launched all capital loss for previous years according to your nomination.

My question is how to change historical data in my Ufile?

Example: In 2021, I had capital gain, using previous loss to deducted the gain, but I didn't know there is a limitation box which can save my credit for future years. I used the full amount to cover the gain. After read this conversation, I submitted a refile to claim back the exceed portion, and received a notice of Reassessment. What I want to know is how to change those data in my Ufile to let them match the CRA updated record.

Tku and await yours,

Nick

 

[Geo123]

Hello Nick1108

 

You are welcome.  To limit the carryforward of the total carryforward losses for 2023 (as well as to adjust the prior years) : 

>>Limit eg. $15,000 of total $20,000

[Nick1108]

Hello Geo123,

Tks for the reply. I've known how to limit the room of capital loss by reading this message.  As I mentioned, the eg(you gave 20k)has already been used, I submitted a refile to claim them back and received the reassessment, that means CRA returned 5k to me, and I want to add this 5k to my Ufile record, but I don't know where to add those credit. Now my Ufile record has 5k shortage with the CRA updated data.