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Deleted CNIL Balance Page

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Will it make a difference to next year's return if I deleted the CNIL Balance page while doing my tax return?  It was automatically populated when I downloaded my info from the CRA, but I figured since I wasn't going to apply the loss this year that I'd get rid of it.  Now I wonder if it will carry over the correct amounts next year when I do my taxes.  Or should I just not worry about it?


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Hello Naturegirl,

Your T936 - CNIL (cumulative net investment loss) balance is how much more your investment expenses were, compared to your investment income, in prior years. It's used to calculate the capital gains deduction (as opposed to a Net capital loss that can be applied to a capital gain).  It’s used to calculate the capital gains deduction that you can claim on the sale of qualified capital property.

The CNIL balance becomes important when you claim the **capital gains deduction on eligible farming and small business investments only.
 **  It does not apply to all capital Gains**

If your cumulative investment expenses exceed your cumulative investment income, the CNIL may reduce the allowable amount of your capital gains deduction.

Which capital gains are eligible for the capital gains deduction?

The capital gains deduction can be applied against taxable capital gains included in 2022 income that arose from:

    dispositions of qualified small business corporation shares
    dispositions of qualified farm or fishing property
    reserves brought into income in 2022, from either of the above 

Your investment income includes:
    Investment income (taxable amount of eligible and other than eligible dividends from taxable Canadian corporations and interest and other investment income such as foreign interest and dividends)
    50% of income from the recovery of exploration and development expenses
    Net rental income including recaptured capital cost allowance (CCA)
    Net income from limited or non-active partnership other than taxable capital gains
    Other property income, including annuity payments taxable under paragraph 56(1)(d) minus the capital portion deducted under paragraph 60(a)*, such as:
        Insurance proceeds for the recapture of capital cost allowance
        Home insulation or energy conversion grants
        Payments given as an inducement or reimbursement
        Income from the appropriation of property to a shareholder
        Farming and fishing income reported by a non-active or a limited partner
        CPP or QPP death benefit payments reported on your return
        Amounts withdrawn from AgriInvest Fund 2

Your investment expenses can include:

    Carrying charges and interest expenses
    50% of exploration and development expenses
    Losses from rental, limited or non-active partnership other than allowable capital losses, and limited partnership losses of other years after 1985
    Other investment expenses paid to earn property income such as:
        Farming or fishing losses claimed by a non-active partner or a limited partner
        Foreign non-business tax under subsections 20(11) and 20(12)
        Repayments of inducements and refund interest
        The uncollectible portion of proceeds from dispositions of depreciable property (except passenger vehicles that cost more than $30,000)
        Life insurance premiums deducted from property income
        Capital cost allowance (CCA) claimed on certified films or videotapes
        Sale of agreement for sale or mortgage included in proceeds of disposition in a previous year under subsection 20(5)

It is not on the Notice of Assessment but the CRA will have it on file.  It is downloaded in the AFR.

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