How to claim losses on worthless stock in Ufile

[jellytot]

I was wondering if I could please get some advice on the following:

Some background: I have an old stock security that has been sitting in my margin account. The stock went bankrupt years ago. Today I will be filing a request with my platform to have the security removed (will take a few days). I believe I had initially paid ~$500 USD for those securities.

Based on the price I paid for the securities, would it be worth trying to claim it on my taxes (I assume in the next tax year 2024) to get some sort of reimbursement? If it is worth it, then how do I do that in Ufile? Please be specific on what I would need to fill out.

Thanks in advance!

[Geo123]

Hello jellytot,

Please note we do not provide tax advice in this Forum, only issues relating to the UFile software.  

how to enter Capital Gains (losses)

Schedule 3 line 13200
For an amount on line 13200 of Schedule 3, follow this procedure:

1. On the "Left-side menu on the Interview tab", select "Interview setup".
2. On the screen to your right, go to the "Investment income and expenses" group, check the box "Capital gains (or losses) and capital gain history" and click "Next" at the bottom of the page.
3. Return to the "Left-side menu on the Interview tab", select the item "Capital gains and ABIL" and on the page to your right, choose "Stocks, mutual funds and other non depreciable property".
4. On the page "Stocks, mutual funds and other non depreciable property", make sure to complete all the fields marked with a red asterisk "*" as they are mandatory. Fill out the other fields as appropriate based on the information that you have.
nter the details of your stocks, mutual funds or other non depreciable property transactions. The program will calculate the capital gain or loss based on the amounts entered here. 

Example :
Description of the stock or property  Stocks
Number of shares sold  10
 Date of acquisition (dd-mm-yyyy)01.01.2021   < = =  IF multiple dates leave blank
 Date of disposition (dd-mm-yyyy)  01-01-2023
 Total proceeds from the sale of the shares or property  $10,000.00  < = =  WHAT you received
 Adjusted cost base of the shares or property $5,000.00 < = =  WHAT you paid
 Expenses incurred in making the disposition  $25.00 < = =  BROKERAGE fees

The capital gain will be reported by the program on line 12700 of the federal return and, for Quebec residents, to line 139 of the Quebec return, and Schedule G will be generated by the program.
However, if you have suffered a loss by selling your shares, the amount will be reported on line 13200 of Schedule 3. As for Quebec residents, the amount will be reported on line 10 of Schedule G.

Net capital loss

Is calculated automatically based on the entries in the section : “Investment and interest income and expenses”.  NOTE - When you have a net capital loss, line 12700 remains blank. However, under the "Tax Return" tab in the program, capital gains and losses are shown on Schedule 3. The same principle applies to Quebec.

A capital loss will automatically be carried forward to the following year by the program, if not applied to a capital gain.

As per the CRA's website: "On line 12700, enter the positive amount from line 19900 on your Schedule 3. If the amount on line 19900 on your Schedule 3 is negative (a loss), do not claim the amount on line 12700 of your tax return. We will register it on our system. Keep track of this loss, which you can use to reduce your taxable capital gains of other years."

The CRA, and Revenu Québec if applicable, will report net capital gains/losses on the Notice of Assessment after reviewing your tax return.

For more information, please refer to the CRA website:

https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/personal-income/line-127-capital-gains/calculating-reporting-your-capital-gains-losses.html