Link from Net Capital Loss worksheet to Line 253 is not working. Should I override Line 253 with the amount on Line 127, or can Turbo Tax be fixed to make the transfer?

[dave-eagles]

The 2017 return was prepared by an accountant using their software, and the 2017 return did not include a Loss worksheet for prior year net capital losses, so there is no record of prior year net capital losses on the Notice of Assessment for 2017.  For this reason, I have manually input the prior year capital losses onto the Loss worksheet for 2018.  However, Turbo Tax is not transferring an amount from this worksheet to Line 253 (Turbo Tax software bug?).  

As long as the software is not working for this link, my alternative would appear to be to manually override Line 253.  However, then there is a question of what amount to input.  Given that I would like to fulIy offset the taxable capital gain amount in Line 127, and given that the prior year net capital losses exceed the 2018 taxable capital gain amount, should I input the Line 127 amount into Line 253 using the override feature?

[TurboTaxKim · Accepted solution]

If you do not have an amount on your NOA for Net Capital Loss, CRA will not allow you to apply a loss that doesn't exist in their records to your current year tax return. You would have to "adjust" your 2017 tax return to reflect the Capital Loss prior to claiming it on your 2018.

If you do have a Net Capital Loss available to use, there is no need to override Line 253 of your tax return (doing so would make it ineligible for NetFile). You can enter the amount of any losses on the "Loss Worksheet" which you can access in the Forms view of your TurboTax by clicking on the Forms icon and typing in "Loss" as your keyword to search for. 

[pamjcoupon]

I did the exact thing you have recommended and entered in the net capital loss amount  on the loss worksheet; however, it still will not carryfoward to line 253. I have a capital gain in 2018 that I would like to apply previous capital losses to.

[jpstod]

I have exactly the same problem. My notice of assessment says I have a substantial capital loss from previous years but I can't apply any of it to line 253. There is no Loss Worksheet available on my Forms dropdown. I'm working on a Mac.

[TurboTaxKim]

@jpstod As you are using the Online version of TurboTax, you will actually have "three steps" to do to apply that Net Capital Loss. If you cannot see the "Net Capital Loss Carryforward" in the Losses Profile (under Deductions), click "Losses Profile" and "Losses Profile" again to land on the page where you can check the box "Net Capital Loss Carryforward". https://turbotax.community.intuit.ca/replies/3833036

[TurboTaxKim]

@pamjcoupon You will need to "apply" the loss after entering the amount. If you are using TurboTax CD/Installed, use the Find button and type in "Net Capital Loss Carryforward" to get to the screen to "apply" the loss and have it post to Line 253.

[amhersthaven]

Having trouble attempting to apply capital losses from prior years to this year's capital gains.  Need idiot proof instructions. 

[TurboTaxDeanna]

@dave-eagles

@amhersthaven

CD/download version:

Select the find button at the top of your screen, and start typing Cumulative net investment loss, select the required form and complete, as demonstrated below:

Online version: you will need to select Investment on the left-hand side of the page and use the checkboxes to select,

Scroll down to the section CINL carryforward:

Tip: Do you have the latest updates: https://turbotax.community.intuit.ca/community/product-information/help/where-can-i-download-the-cd-...

[sandyfarrell]

I have the same problem.  The link from Loss worksheet to T1 line 25300 does not work.  I tried some of the work arounds given and they were impossible to follow or just plain didn't work.  The carry forward loss for my Loss form is shown in 'Balance end of year' column.   Line 25300 on the T1 form shows 0.00.  When I click on the 'Forms' button at the bottom of the screen, I can scroll up to the 'Loss' worksheet.  When i double click on line 25300, i'm routed to Net Capital Losses with the cursor appearing at the last input I had selected on the Loss form.  Clicking on the 'Balance end of year' and going back to the T1 sheet doesn't do anything.

[sandyfarrell]

I'm replying to my own message.  I finally got the form to work correctly.  On the Net Capital Losses I entered my 2019 Net Capital Losses in the column 'Claimed in 2020'.  the result was that the 'Balance end of year' data box now reports a 0.00 value.  Back to T1 line 25300 and my Net Capital Loss in now shown correctly.  The key is that you must enter the amount you are claiming in the column 'Claimed in 2020'.