Amount claimed for the taxable capital gains deduction is greater than the amount of capital gains reported

[alex_mz]

Hello,

For TurboTax Business Desktop 2024

I get this error: "On the Québec return, the amount claimed for the taxable capital gains deduction is greater than the amount of capital gains reported or there is no eligible capital gain for this deduction. Please correct to make the return eligible for NetFile Québec.".

My amount on line 139 of TP1-General (QC) is 25,189 (for example) and line 292=25,000. And I get that error. The "amount claimed for the taxable capital gains deduction" (line 292=25,000) is NOT greater than "amount of capital gains reported" (line 139 = 25,189).

Line 139 comes from SCH. G (line 108).

Line 292 comes from TP-276.20.2 (line 75) (I think this causes the problem, but I am not sure)

Can you please look into it, as I think it's a bug?

Thank you,

Alex

[TurboTaxSusan]

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[ngrigoriev]

+1 - same issue exactly, preventing the NETFILE for QC

On the Quebec return, the amount claimed for the taxable capital gains deduction is greater than the amount of capital gains reported or there is no eligible capital gain for this deduction. Please correct to make the return eligible for NetFile Quebec

I use T-5013/RL-15 forms and TP-726.20.2-V (resource properties).

When trying to click "FIX", Turbotax prompts me for "Total taxable capital gains exemption for 2024" (0.0) and highlights the line 56 of TP-726.7-V, where it shows 0 as well. This seems to be consistent with the previous years. I only use resource properties, not farm/fishing stuff.

It does look like a bug in TT.

Have you managed to work around this problem somehow?

Thanks!

[alex_mz]

Yes, same thing. Spent 30min on the phone with a customer service person, no solution.

I fixed it by getting UFile (Impôt Expert) and redoing the tax return. No problem with it and much cheaper.

[ngrigoriev]

This is my usual experience with TurboTax, except that I have not resorted to moving to another tool. I should, really.  Intuit allows their software to have serious bugs every year, ignoring the tax rules, often failing to simply copying a value from one box to another. I personally know that their implementation of Quebec forms related to resource capital gain deduction is wrong.

I will search for the workaround. I have little hope for Intuit support, all my previous attempts to use them resulted in wasted time and frustration.

[ngrigoriev]

OK, I have narrowed it down to the form TP-726.20.2-V. This form is the most visible example of Intuit stupidity and stubbornness, as year after year they simply refuse to get it right. If I remove the values from #34 and #54.1 (which come from the previous years) and, effectively, reduce the line #75 to $0, it seems to work around the issue - at the cost of extra $$$$ paid to Quebec, of course.

So, worst case, I can go without this form at all and then file the paper adjustment...In the past years, this form worked at least for the values from T-5013/RL-15 forms, but this year it seems they have broken even that.

[alex_mz]

Ufile is a muche cheaper solution...

T2038, see around boxes G,H, I, J, don't remember from memory. It says "enter the smallest value between two boxes", but it puts the difference there. I called them, they agreed it's a bug and fixed it 3 days later. Great. But one month later, after another update, that line is back to being the difference of the other two lines, not the smallest...I can't keep checking manually each time if they broke something else again...

And yes, your findings correspond to mine. Removing those values makes the declaration valid, but it's not the correct way.

[ngrigoriev]

Just called Intuit and they agreed to look into it. Basically, what I described to them is as follows:

- one must have some capital gains (TP-1 #139)

- one should have any positive amount of taxable capital gain deduction on line #292, which comes from #75 of TP-726.20.2-V

This blocks QC NETFILE. Since it prevents QC NETFILE, then the condition is 100% in TT software itself.

This situation would usually happen to anyone receiving T-5013/RL-15 at least for the years 2024 and 2023. 2024 one(s) would usually give the taxable capital gain deduction for Quebec (line #62 if I recall, explorations in Quebec). 2023 ones and before would usually have the capital gains realized by the partnerships +  line #45 with the amount of capital gain eligible for deduction. So, in the simplest case, the capital gains and the QC-specific deductions come from these forms. Of course, if the total capital gains (for all investments) are negative (loss), then all this does not apply, because all capital gains total together.

Now, about not using TP-726.20.2-V...I need to file the paper adjustment anyway, because there are capital gains from the resource property that are not reflected in RL-15. These mutual funds you get when the LPs roll over.  There you usually have some capital gain. There is no way to enter these in TT because it requires multiple TP-726.20.2-V's - as it says in the first paragraph of that form. Intuit developers cannot read, unfortunately.

I can see this bug for both me and my wife's returns, so it is not exceptional. I believe that any QC investor using TT will have this problem and, considering that RL-15s are made available in the end of March, quite possible this long weekend some people will swear a lot 😉 Or their accountants.

What is your U-File experience? Does it support these forms well?

Thanks to TT, I now know this part way too good for someone who is not an accountant at all ;(