# Line 127 - Ufile's CG/CL reporting



## Beaver101 (Nov 14, 2011)

Everytime Ufile does some updates, I get all confused. In the page you record the capital gains/losses on Ufile, it asks for: "your percentage share of capital gain/loss recorded here". I'm not sure if it refers to the 50% that applies to either gains or losses, or whether it refers to a portion of the shares if co-owned with someone else, i.e. your spouse. When I click for help, it says to refer to line 127 as per below, so am I correct to assume I should record 50% then since the comment does not deal with % of ownership, but % of gains/losses? [If so, why would Ufile even ask that question when the 50% is applicable to everyone or every province too, I assume?].

_Line 127 – Taxable capital gains
You may have a capital gain or loss when you dispose of property, such as when you sell real estate or shares (including those in mutual funds). Generally, if the total of your gains for the year is more than the total of your losses, you have to report 50% of the difference as income. However, if the total of your losses for the year is more than the total of your gains, you cannot deduct the difference on your return for the year. See the next section, "How to report these gains."
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Any one care to clarify this? Thanks,


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## AltaRed (Jun 8, 2009)

It refers to your share of the cap gains/losses, i.e. 100% typically, or if less, then you put in the perentage and then move on to the next line which asks if you want to transfer the remainder to your spouse (if applicable). It is obviously 100% if an individual account.

It has nothing to do with the inclusion rate which is currently 50% but is speculated to go up with our 'tax and spend' liberals next week.


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## Beaver101 (Nov 14, 2011)

^ Thanks AltaRed for the quick response. 

Re the CG rate, want to take a guess what it'll be? I'm guessing it can't be 75% otherwise, we're going backwards.


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## AltaRed (Jun 8, 2009)

No guesses but our new government has made (is making) a lot more increased spending decisions and is most likely to zero in on 'those that can pay more'.


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## StelcoSteve (Mar 20, 2016)

*"your percentage share of capital gain/loss recorded here"*

Using Ufile this question puzzled me because I assumed wrongly that the program would optimize this value for me based on joint ownership of a trading account with my wife. In fact Ufile did NOT enter a value so by playing with the percentage of each gain / loss per trade i was able to reduce my balance owing by several hundred dollars. Disappointed in Ufile for not having an explanation that allows one to optimize the percentage in order to save taxes owing. Please comment if I am missing something here.


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## AltaRed (Jun 8, 2009)

StelcoSteve said:


> Using Ufile this question puzzled me because I assumed wrongly that the program would optimize this value for me based on joint ownership of a trading account with my wife. In fact Ufile did NOT enter a value so by playing with the percentage of each gain / loss per trade i was able to reduce my balance owing by several hundred dollars. Disappointed in Ufile for not having an explanation that allows one to optimize the percentage in order to save taxes owing. Please comment if I am missing something here.


You cannot arbitrarily assign percentages of ownership and thus no tax software program can touch that decision. You have to declare the portion of the account to which you made the investments and your wife has to declare the portio of the account in which she made investments. There is no such thing as optimization. It is called Attribution of Income by CRA and is very definitive and very specific. Google it and read up on it on any one of a number of websites, including CRA's own website. IOW, what you propose to do is completely illegal, i.e. tax evasion. You have kept track of the percentage of ownership of each asset in the joint account, have you not? And you have a paper trail to show that if CRA comes calling, do you not?

Example: If your spouse contributed the capital to buy BCE shares, then only she can declare any cap gains/losses or income from that investment and the cash she receives is hers, not yours from CRA's perspective. Joint accounts are actually a poor way to keep track of Attribution. It is better for each of you to have your own account for record keeping purposes.


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## StelcoSteve (Mar 20, 2016)

AltaRed said:


> You cannot arbitrarily assign percentages of ownership and thus no tax software program can touch that decision. You have to declare the portion of the account to which you made the investments and your wife has to declare the portio of the account in which she made investments. There is no such thing as optimization. It is called Attribution of Income by CRA and is very definitive and very specific. Google it and read up on it on any one of a number of websites, including CRA's own website. IOW, what you propose to do is completely illegal, i.e. tax evasion. You have kept track of the percentage of ownership of each asset in the joint account, have you not? And you have a paper trail to show that if CRA comes calling, do you not?
> 
> Example: If your spouse contributed the capital to buy BCE shares, then only she can declare any cap gains/losses or income from that investment and the cash she receives is hers, not yours from CRA's perspective. Joint accounts are actually a poor way to keep track of Attribution. It is better for each of you to have your own account for record keeping purposes.


Thank you for this explanation, AltaRed.


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