Personal Finance

UFile Capital Loss and Gains & Rental Income

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  • Apr 28th, 2012 1:37 am
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Banned
Feb 17, 2007
3190 posts
203 upvotes

UFile Capital Loss and Gains & Rental Income

I am just fiddling around with the software.
Here is something I do not understand.
I inputted capital gain last year, and then inputted capital loss this year.
It doesn't calculate the losses to offset previous gains.
Is there a button to press?
12 replies
Deal Fanatic
User avatar
Dec 21, 2005
5865 posts
1672 upvotes
London, ON
Umm...i believe there's this thing called T1ADJ for prior yr returns?
💡😃😂😄
Deal Addict
Oct 9, 2005
1884 posts
230 upvotes
You can only do inputting amounts when you have previous losses and now you have a gain. If it's the reverse, you need to file a T1ADJ for each year you want to apply the current loss to previous gains.
Banned
Feb 17, 2007
3190 posts
203 upvotes
Thanks guys. and i am an accountant lol, but i dont do taxes. these practical things should be left with the professionals.
Can UFile generate that form?
Banned
Feb 17, 2007
3190 posts
203 upvotes
adamtheman wrote: No you can't you need to print it off and mail it off
http://www.cra-arc.gc.ca/E/pbg/tf/t1-adj/README.html

Just mail in your tax return too with it unless you're in a rush to get a refund... meh. I have to mail in mine this year, shrug. I owe a lot of money though so might as well wait.


I am using netfile.
In reality, i dont have aNy capital loss this year.
I never reported any capital loss in any given year lol even during down years.
Deal Addict
User avatar
Sep 26, 2007
3960 posts
146 upvotes
SC
ACC-Major wrote: I am using netfile.
In reality, i dont have aNy capital loss this year.
I never reported any capital loss in any given year lol even during down years.

your with rbc right? i believe you are able to file at h&r block for free.
i guess it was just a paper loss on your mind lol
"We don't have a soul... We are a soul. We have a body." ~C.S Lewis
Deal Addict
User avatar
Apr 10, 2010
1398 posts
208 upvotes
guessaaa wrote: You can only do inputting amounts when you have previous losses and now you have a gain. If it's the reverse, you need to file a T1ADJ for each year you want to apply the current loss to previous gains.

I think this is not true. If you had gains and this year you have losses, you don't file "adjustments" to those previous years, you indicate in this year's return that you would like the losses from this year to offset previous years' gains, somewhere. I'm just not sure where. But you definitely shouldn't file adjustments to previous years because previous years' return are correct and there's nothing to adjust for.
Newbie
Apr 13, 2009
3 posts
5 upvotes
oakville
UFile does provide the T1-ADJ and its Quebec equivalent.

However, this situation does not require the T1-ADJ. It is a T1A-Loss Carry Back that has to be filed. Here's the procedure:
You first create the net capital loss in the current tax year in the Interview.
Then, you go to the Tax Return section of UFile, Schedule 3.
This shows a capital loss at line 132. Line 199 is the net capital loss.
Schedule 3 nets out gains against losses. If there is a net loss for the year, it does not enter a negative amount at line 127, instead it enters 0.
This creates a capital loss to carry forward.
However, the current year net capital loss may be offset against past years net capital gains.
First, ensure that your past years net capital losses and gains are entered to UFile.
(To enter your past years capital gains and losses,
you do this in the Capital gains section,
'Capital gains and capital gains deductions in other years'.)
Then in the Interview you click on ‘Losses of prior years, carrybacks’.
There, you go to ‘Carryback of a loss which occurred in 2011’.
At the box at the top of this form is the question
'Type of carryback you wish to apply' you must reply to this question,
there are 5 different options. The most common reply for regular capital losses in the current year is 'Net capital losses'.
You enter the year and the amount of the loss you wish to carry back.
You click on Results, and go to the Tax return section.
UFile generates the form T1A-Loss Carry Back.
You should review this before filing your taxes. Please look at T1A Section III.
The T1A does not generate a refund in the current year in UFile; instead, the form is sent to CRA either by Netfile or by mail.
CRA will re-assess previous years tax filings, based on the T1A.
They will issue you a report later, and may issue you a cheque.

Hope that helps.
Deal Addict
User avatar
Apr 10, 2010
1398 posts
208 upvotes
Joannebir wrote: UFile does provide the T1-ADJ and its Quebec equivalent.

However, this situation does not require the T1-ADJ. It is a T1A-Loss Carry Back that has to be filed. Here's the procedure:
You first create the net capital loss in the current tax year in the Interview.
Then, you go to the Tax Return section of UFile, Schedule 3.
This shows a capital loss at line 132. Line 199 is the net capital loss.
Schedule 3 nets out gains against losses. If there is a net loss for the year, it does not enter a negative amount at line 127, instead it enters 0.
This creates a capital loss to carry forward.
However, the current year net capital loss may be offset against past years net capital gains.
First, ensure that your past years net capital losses and gains are entered to UFile.
(To enter your past years capital gains and losses,
you do this in the Capital gains section,
'Capital gains and capital gains deductions in other years'.)
Then in the Interview you click on ‘Losses of prior years, carrybacks’.
There, you go to ‘Carryback of a loss which occurred in 2011’.
At the box at the top of this form is the question
'Type of carryback you wish to apply' you must reply to this question,
there are 5 different options. The most common reply for regular capital losses in the current year is 'Net capital losses'.
You enter the year and the amount of the loss you wish to carry back.
You click on Results, and go to the Tax return section.
UFile generates the form T1A-Loss Carry Back.
You should review this before filing your taxes. Please look at T1A Section III.
The T1A does not generate a refund in the current year in UFile; instead, the form is sent to CRA either by Netfile or by mail.
CRA will re-assess previous years tax filings, based on the T1A.
They will issue you a report later, and may issue you a cheque.

Hope that helps.

You are awesome!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Thanks!!!!!!!!!!

Is there a donate button?
Banned
Feb 17, 2007
3190 posts
203 upvotes
thanks Joannebir.

How do I report rental income on UFile?
The property is the house I bought as my principal resident and it is my only resident.
I rent a room out; therefore, I must claim some income on it.
Should I report under Rental Income or Other Income?
It seems that other income is for investments.

thanks,
Banned
Feb 17, 2007
3190 posts
203 upvotes
Joannebir wrote: UFile does provide the T1-ADJ and its Quebec equivalent.

However, this situation does not require the T1-ADJ. It is a T1A-Loss Carry Back that has to be filed. Here's the procedure:
You first create the net capital loss in the current tax year in the Interview.
Then, you go to the Tax Return section of UFile, Schedule 3.
This shows a capital loss at line 132. Line 199 is the net capital loss.
Schedule 3 nets out gains against losses. If there is a net loss for the year, it does not enter a negative amount at line 127, instead it enters 0.
This creates a capital loss to carry forward.
However, the current year net capital loss may be offset against past years net capital gains.
First, ensure that your past years net capital losses and gains are entered to UFile.
(To enter your past years capital gains and losses,
you do this in the Capital gains section,
'Capital gains and capital gains deductions in other years'.)
Then in the Interview you click on ‘Losses of prior years, carrybacks’.
There, you go to ‘Carryback of a loss which occurred in 2011’.
At the box at the top of this form is the question
'Type of carryback you wish to apply' you must reply to this question,
there are 5 different options. The most common reply for regular capital losses in the current year is 'Net capital losses'.
You enter the year and the amount of the loss you wish to carry back.
You click on Results, and go to the Tax return section.
UFile generates the form T1A-Loss Carry Back.
You should review this before filing your taxes. Please look at T1A Section III.
The T1A does not generate a refund in the current year in UFile; instead, the form is sent to CRA either by Netfile or by mail.
CRA will re-assess previous years tax filings, based on the T1A.
They will issue you a report later, and may issue you a cheque.

Hope that helps.

No such option
Sr. Member
Dec 20, 2006
526 posts
48 upvotes
Joannebir wrote: UFile does provide the T1-ADJ and its Quebec equivalent.

However, this situation does not require the T1-ADJ. It is a T1A-Loss Carry Back that has to be filed. Here's the procedure:
You first create the net capital loss in the current tax year in the Interview.
Then, you go to the Tax Return section of UFile, Schedule 3.
This shows a capital loss at line 132. Line 199 is the net capital loss.
Schedule 3 nets out gains against losses. If there is a net loss for the year, it does not enter a negative amount at line 127, instead it enters 0.
This creates a capital loss to carry forward.
However, the current year net capital loss may be offset against past years net capital gains.
First, ensure that your past years net capital losses and gains are entered to UFile.
(To enter your past years capital gains and losses,
you do this in the Capital gains section,
'Capital gains and capital gains deductions in other years'.)
Then in the Interview you click on ‘Losses of prior years, carrybacks’.
There, you go to ‘Carryback of a loss which occurred in 2011’.
At the box at the top of this form is the question
'Type of carryback you wish to apply' you must reply to this question,
there are 5 different options. The most common reply for regular capital losses in the current year is 'Net capital losses'.
You enter the year and the amount of the loss you wish to carry back.
You click on Results, and go to the Tax return section.
UFile generates the form T1A-Loss Carry Back.
You should review this before filing your taxes. Please look at T1A Section III.
The T1A does not generate a refund in the current year in UFile; instead, the form is sent to CRA either by Netfile or by mail.
CRA will re-assess previous years tax filings, based on the T1A.
They will issue you a report later, and may issue you a cheque.

Hope that helps.

Thank you very much, I was also looking for this.
Deal Addict
User avatar
Apr 10, 2010
1398 posts
208 upvotes
Joannebir wrote: UFile does provide the T1-ADJ and its Quebec equivalent.

However, this situation does not require the T1-ADJ. It is a T1A-Loss Carry Back that has to be filed. Here's the procedure:
You first create the net capital loss in the current tax year in the Interview.
Then, you go to the Tax Return section of UFile, Schedule 3.
This shows a capital loss at line 132. Line 199 is the net capital loss.
Schedule 3 nets out gains against losses. If there is a net loss for the year, it does not enter a negative amount at line 127, instead it enters 0.
This creates a capital loss to carry forward.
However, the current year net capital loss may be offset against past years net capital gains.
First, ensure that your past years net capital losses and gains are entered to UFile.
(To enter your past years capital gains and losses,
you do this in the Capital gains section,
'Capital gains and capital gains deductions in other years'.)
Then in the Interview you click on ‘Losses of prior years, carrybacks’.
There, you go to ‘Carryback of a loss which occurred in 2011’.
At the box at the top of this form is the question
'Type of carryback you wish to apply' you must reply to this question,
there are 5 different options. The most common reply for regular capital losses in the current year is 'Net capital losses'.
You enter the year and the amount of the loss you wish to carry back.
You click on Results, and go to the Tax return section.
UFile generates the form T1A-Loss Carry Back.
You should review this before filing your taxes. Please look at T1A Section III.
The T1A does not generate a refund in the current year in UFile; instead, the form is sent to CRA either by Netfile or by mail.
CRA will re-assess previous years tax filings, based on the T1A.
They will issue you a report later, and may issue you a cheque.


Hope that helps.

I filed my taxes couple of days ago. Now that CRA has assessed my return. How long does it take for them to "re-assess previous years tax filings based on the T1A"? When they do that, are they going to amend previous year's returns for me?

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