How to claim capital losses against other income for a deceased person

[rada vujic]

My husband passed away in 2024. He had some capital losses accumulated over the years. How to claim it against other income in Turbo Tax?

How to show negative amount on line 127?

Thank you

Rada

[TurboTaxAniqua]

Sorry for your loss! 

Use any net capital loss remaining to reduce other income for the year of death, the year before the year of death, or for both years. If you claim any remaining net capital loss in the year of death, you should claim it as a negative amount in brackets at line 12700 of the Final Return. A man died on June 20, 2024.

For more information, refer to this CRA article: Net capital losses

Thank you for choosing TurboTax.

[rada vujic]

How to show a negative amount in brackets on line 127 in Turbotax ?

I tried to do it on schedule 3 but it does not populate to line 127

Thank you

[TurboTaxAniqua]

@rada vujic  As soon as you put in gains and losses AND you make sure there is a date of death, it works fine. Make sure that you have entered the info correctly.

[Joe Mar]

I followed your instruction, you provided to the previous user, to ensure the date of death is inputted correctly and it is. The net capital loss does show on line 12700 however it does not carry over to line 16.  Line 16 indicates $ 0.

[TurboTaxSusan]

@Joe Mar 

Please contact our phone support team as they will be able to assist you further.

[Joe Mar]

After talking to the support person for 45 minutes, we finally figured out this issue.

Once the date of death is inputted, the net capital loss appears on line 12700 as a negative. It does not populate line 16 therefore it is not taken into consideration on line 23600 Net income. However the net capital loss is included on line 26000 Taxable income. There is no indication that the amount is applied but if you calculate the difference between line 72  and taxable income line 74 (26000) the amount is the net capital loss.