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Level 1
posted Oct 6, 2020 8:00:13 PM

Corporation Sold Mutual Funds at a Loss. Where to Report it in GIFI and T2?

I am trying to complete GIFI on my corporate return and have a loss on disposal of mutual fund units. What code should I use?

0 5 1947
5 Replies
Level 6
Oct 7, 2020 6:49:15 AM

Hi, thank you for using Intuit TurboTax Community

Dispositions can be recorded on s125 using GIFI Code 8210 or 8211. Schedule 6 of the T2 is used to report capital dispositions. If you have questions regarding your specific transactions call CRA at 1-800-959-5525

Hope this helps

Level 1
Oct 7, 2020 8:06:50 PM

Let me clarify this: if after completing t2sch6 the disposition yield is negative or a loss, it can't be used to offset business income, right? Then I can't put negative value on line 8210, or should I? Thanks

Level 6
Oct 8, 2020 6:30:31 AM

Hi, thank you for using Intuit TurboTax Community

A negative number can be entered on line 8210 of s125 and would represent a loss on the sale of an asset. A capital loss on schedule 6 would not offset other income on schedule 1. As per CRA rules, a capital loss can be carried back 3 years or carried forward. Check schedule 4 for the net capital loss details.

Hope this helps

Level 1
Oct 8, 2020 9:45:53 AM

First of all thanks TurboTax-Duncan for taking your time responding. Appreciate it very much!

I can't help but noticing you are trying to avoid answering my question 🙂 I guess I would agree numbers on line 8210 can be negative, I read about basic rules around capital loss, I did schedule 4 and 6. My question was if in my specific case the loss from selling mutual funds (FYI, I'm not trading them for living) should be reported on line 8210.  I know you said call CRA at [phone number removed] and I will, I'm just curious if there's something more to it and that's why you are not giving a simple answer 🙂

Level 6
Oct 8, 2020 10:21:43 AM

Hi, thank you using Intuit TurboTax Community

As I mentioned in my first response, you need to check with CRA regarding any specific tax scenario. What I supplied was information as general back ground and was not referencing your specific transaction. 

Sorry for the inconvenience but hope this helps