Net Capital Loss Carrybacks - Not seeing change to 2021 Balance

[TurT123]

Hi, I have capital losses that I want to apply against gains from 2018. I have put in my stock losses for this year and I go to the Net Capital Loss Carry Back screen and apply the loss amount to the year 2018 where I have the gains to apply my losses to. I would have expected to see my 2021 Balance Due increase but it does not change. Can someone give me some insight into this as I would expect to get some money back for this loss and I believe I'm entering it correctly against the gains from a previous year.  I have not done this before in terms of applying a loss to a previous years gain.

Thank you.

[ram06]

A net capital loss can only be carried back to reduce taxable capital gains in any of the three prior years. Any available taxable capital gains will be shown on your prior year’s Notice of Assessment or Notice of Reassessment. Your carryback amounts won't affect this year's tax return

Here are the steps to carry back a net capital loss using Turbo Tax:

• Select Find and enter losses in the search bar
• Select Losses from the search results, then Go
• Select the Request for Loss Carryback box
• Select Continue until you reach the Net Capital Loss Carrybacks screen
• The maximum net capital loss that you can carry back is listed. Enter the amount(s) you wish to carry back for each applicable year, then select Continue

For further information and guidance, please see our TurboTax links below.

TurboTax FAQ/video Where do I report capital gains or losses in TurboTax Online?

TurboTax article Claiming Capital Gains and Losses

Thank you for choosing Turbo Tax.

[TurT123]

Hi Ram06. Yes I followed those steps. Just want to confirm, I mentioned that TurboTax did not show any increase in my balance due in my 2021 taxes within TurboTax Premier online when I applied this years losses against gains from 2018.  I was expecting to see the balance due increase but I didn't. Is that expected? 

[TurboTaxGinette]

Yes, the difference would occur to your 2018 return, which will be reassessed by the Canada Revenue Agency (CRA) when you send them the T1A. Your 2021 return will not change.

Please see our TurboTax article Carrying Capital Losses to a Different Year

Thank you for choosing TurboTax.

[TurT123]

Okay got it. Thank you Ginette. Last question I think. I have followed the below steps in TurboTax online Premier. I'll be submitting my tax return via TurboTax. If I followed the steps below, will that send the CRA the details for them to create my refund or will I have to send them the T1A form in addition to doing the below steps. More specifically can I do this all in TurboTax online or do I need to also send that T1A form. I was hoping I could do this entirely in TurboTax online. If not that's fine. Just want to get a bit of a clarity. Sorry for my lack of knowledge on this.

• Select Find and enter losses in the search bar
• Select Losses from the search results, then Go
• Select the Request for Loss Carryback box
• Select Continue until you reach the Net Capital Loss Carrybacks screen
• The maximum net capital loss that you can carry back is listed. Enter the amount(s) you wish to carry back for each applicable year, then select Continue

[TurboTaxGinette]

No apologies needed. Your T1A Request for Loss Carryback will be included with your return and the Canada Revenue Agency(CRA) will reassess your past according to your request from there.

Thank you for choosing TurboTax.

[TurT123]

Hi. Ginette. Thank you very much.

[c4m]

Hi, 

I really appreciate the previous posts since I had the same questions.

But can someone please explain why TurboTax is asking me for my "capital gains inclusion rate for 2000"?

And how do I get this info from 23 years ago?

thank you in advance for your help!

[TurboTaxSusan]

@c4m If you don't have capital losses or gains from 2000, then you don't need to fill in that information.

[c4m]

Hi Susan,

Thank you so much for your response!

The problem is that I actually don't know whether I had capital gains or losses in 2000.

I don't have paper records from that long ago and I can't find that info on My CRA account.

Can you please advise?

thank you so much!