Turbo Tax correctly identify the amount that I should be able to deduct on the Capital gain deduction, but for some reason says that the maximum amount that I can deduct is $0.00.
I sold shares of a Private Canadian Company that I have own for 2 years. I have never used the lifetime capital gains exception (LCGE) before, so I am not over the limit. This is the first time in my life that I sell shares, so there are not reserves or capitals gains from previous year.
The disposition was not to my child, and I do not have any Farm or Fishery property.
The applicable section of form T657 is 3f (However Turbo Tax seems to fill the other sections: 3a to 3e).
Line 90 has the correct amount (this is the amount that it is auto-suggested by Turbo Tax on the box using the easy forms). This is the same amount in lines 14 and 31. So, I was expecting to be able to reduce this amount.
When I click to see the field in the form, it shows me section 3d instead of section 3f. The box in section 3d takes the lesser of line 14, 31 and 65. As I am not claiming any reserve from 2015, line 64 is zero.
I double checked the checkboxes, and Turbo Tax correctly recognized that section 3f is the applicable one, but somehow gets confused and tries section 3d.
Do you know how to solve this? I appreciate your help.
The software is being updated, in the meantime, here is a workaround.
When you get to the screen Entering your Capital Gains Deduction, Enter the amount you wish to claim or if it already filled in with the number, do not click continue, but click on the Back button. Skip over to either your next income item or if you are finished with income, click on Income Summary to move on.
The software is being updated, in the meantime, here is a workaround.
When you get to the screen Entering your Capital Gains Deduction, Enter the amount you wish to claim or if it already filled in with the number, do not click continue, but click on the Back button. Skip over to either your next income item or if you are finished with income, click on Income Summary to move on.
I went to detailed summary to check if the capital gains deduction was claimed in yellow.
Thank you Trevor, I used your workaround and the capital gains deduction amount appears on the deduction summary.
I could only make this work by entering the deduction amount in section 3d. This means a deduction will be reflected in the wrong section of form T657 when I submit the return. Fortunately for me I need to send in a printed form (deceased final return) and I can white out the incorrect amount in section 3d. For those submitting electronically a deduction amount will be incorrectly reflected in section 3d.