# Loss Carryback on UFile



## m3s (Apr 3, 2010)

I had a net capital gains loss in 2016 from transferring stocks in kind from non-reg to TFSA. I read I can carryback this net loss to 2013-2015 when I had net capital gains

The confusing part is the 50% and how much to apply to previous years in UFile. Say I had $3000 net capital gains in 2015, so 50% taxable means $1500 taxable capital gains

UFile words it as follows with no clear indication if they will apply "taxable capital gains" or "net capital gains"

Net capital loss for carryback

Amount to be applied to 2013
Amount to be applied to 2014
Amount to be applied to 2015
CNIL adjustment (amount of capital gain considered as investment income)

So to offset $3000 net capital gains in 2015 should I put $3000 or $1500?..


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## OnlyMyOpinion (Sep 1, 2013)

I think you mean you had $3000 of total capital gains (line 197), or $1500 of taxable capital gains (line 199 of schedule 3)
You are carrying back the net capital loss $1500 (line 199 of schedule 3), not the total loss (line 197).


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## AltaRed (Jun 8, 2009)

Agreed! I've done the same with UFile a number of times.

To the OP: If you are still unsure, just plug in a number and then click the 4 (Tax Return) button (which calculates the return) and you can view the results yourself to satisfy yourself it is Line 199 rather than Line 197

But on another note, are you permitted to take a loss when transferring 'in kind' to a TFSA? I seem to have read somewhere that you never transfer assets with capital losses into a registered account. See http://www.taxtips.ca/personaltax/investing/transfersharestorrsp.htm


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## OnlyMyOpinion (Sep 1, 2013)

Excellent catch. You can't claim a loss when transferring in-kind to a registered account.


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## OptsyEagle (Nov 29, 2009)

One other point. You need to file your 2016 tax return and have it processed before you process your carry back information form. This is not all about your 2016 return. You are actually asking them to reassess your previous years returns. If you do it at the same time it may confuse the government and not get done. So they have to log in your losses before they can carry them back.


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## Eclectic12 (Oct 20, 2010)

AltaRed said:


> m3s said:
> 
> 
> > I had a net capital gains loss in 2016 from transferring stocks in kind from non-reg to TFSA. I read I can carryback this net loss to 2013-2015 when I had net capital gains ...
> ...


One is not allowed to claim a loss on a transfer to a registered account, as per the link. One does, after all, still own the investment.

Where one wants to have the capital loss available, the way to do it is to sell the stock for cash then contribute to the TFSA. As I understand it, one also has to either wait thirty one days before re-buying the stock (to avoid the superficial loss rules) or find a similar investment to buy right away (ex. sell TD bank then buy in the TFSA Scotiabank).


Cheers


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## OptsyEagle (Nov 29, 2009)

Eclectic12 said:


> One is not allowed to claim a loss on a transfer to a registered account, as per the link. One does, after all, still own the investment.


Good point. I did not notice that this loss came from a transfer to a TFSA.


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## m3s (Apr 3, 2010)

Yup.. good thing I posted this here before filing! It did seem too good to be true especially because some of these losses bounced back within TFSA. I was wondering why I never transferred capital gains losses into TFSA before and now I remember why. Should have sold and bought something similar as mentioned above to offset capital gains but I'll remember next time! :stung:



OptsyEagle said:


> One other point. You need to file your 2016 tax return and have it processed before you process your carry back information form. This is not all about your 2016 return. You are actually asking them to reassess your previous years returns. If you do it at the same time it may confuse the government and not get done. So they have to log in your losses before they can carry them back.


UFile actually seems pretty good at explaining this part. I'm not sure if it's new but UFile can transmit the T1A request directly to CRA with your 2016 return and then you will have to wait for a reassessment of the previous years. Now because I am resident of Quebec I would have to print, sign and mail in a TP-1012.A to revenue Quebec and wait for their separate reassessments..

But I also have to submit T1-adj and TP-1.R-V for several previous years due to adjusted T4s and R1s and trying to do this at the same time could indeed confuse the CRA/RQ machines and just cause a mess at my expense. So in the future it would be prudent to just offset gains and losses in the current or future years..


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## AltaRed (Jun 8, 2009)

OptsyEagle said:


> One other point. You need to file your 2016 tax return and have it processed before you process your carry back information form. This is not all about your 2016 return. You are actually asking them to reassess your previous years returns. If you do it at the same time it may confuse the government and not get done. So they have to log in your losses before they can carry them back.


A moot point for this thread since the OP cannot claim a Loss Carryback in this instance, but for the record, the Loss Carryback request can be part of the Netfile filing of this year's return. CRA processes the current year return first and issues the NOA, then assesses the Carryback and issues the amended NOA some time later. Done this a number of times.


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