How can I use CNIL to offset taxable capital gains for current tax year?

[peter-m]

I am using TurboTax Standard and have a Cumulative Net Investment Loss (CNIL) from previous years. How can I use it to offset the taxable capital gains from investments in current tax year?

[Kupat]

In TurboTax Standard, use your Cumulative Net Investment Loss (CNIL) to offset taxable capital gains by reporting it on Form T936, which limits your Capital Gains Deduction (Line 25400) when selling eligible property. To offset current gains with previous losses, enter your Net Capital Loss carry-forward from your last Notice of Assessment in the "Capital Gains" section to reduce Line 12700.

 

Steps to Apply CNIL in TurboTax Standard:

1. Locate Previous CNIL: Find your CNIL balance from your last Notice of Assessment or Tax Return.
2. Navigate to Investments: In TurboTax, go to the Investment Income tab, then select Capital Gains/Losses.
3. Enter CNIL/Losses:
   • Enter any previous years' net capital losses in the designated field to reduce current year taxable capital gains.
   • If you are selling qualified small business corporation shares or farm/fishing property, complete the T936 (Calculation of Cumulative Net Investment Loss) within the deductions section to calculate your updated CNIL.
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4. Ensure all investment dispositions are entered. TurboTax will apply the loss to lower Line 12700.

If you need additional information on gains and losses, visit - All Your Questions About Capital Gains and Taxes, Answered  & Losses and How to Claim Them on Your Taxes.

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