Update Mar 17th,2025 - With todays TurboTax update Schedule 3 is no longer showing "DRAFT", however, Issue 1, below, is still a problem (ie. still requires a non-zero entry). Issue 2 has been cleared up.
Update Apr 4th,2025 - today's update of TurboTax has eliminated the non-zero problem (Line 7, Loss Worksheet). And seems to have stopped it automatically applying all of the "net capital losses of other years" to 2024 and line 25300.
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Replying to this post as it is specific to errors with the Loss Worksheet. There are other posts that also touch on the subject of problems with Schedule 3 and the Loss Worksheet (some of those are not open to additional replies/posts).
I could not find specific mention of the issues I have discovered so addressing them here. I am using TurboTax Download for PC (all updates installed to date, Mar 15th/25).
I realize Schedule 3 is currently in “Draft” (locked) and presumably the associated Loss Worksheet is also. However, there are two issues that should be watched for by users (and TurboTax programmers) when updated/unlocked.
1) CAPITAL LOSS CARRY FORWARD & APPLYING NET CAPITAL LOSSES OF OTHER YEARS
Specifically: “Step 2 - Applying net capital losses of other years to 2024”
In my case I have a net capital gain for 2024 but do not want to use any of the prior net capital losses against it and want to carry forward all of those losses to subsequent year(s) when a higher marginal tax rate is anticipated. Have done this for a couple of years now.
If you have a prior capital loss that you DO NOT want to use against 2024 capital gains, and want to defer (carry forward) some or all of it to a subsequent years, it is on the Loss Worksheet where you manage that (without forcing an override). Has been this way for a few years.
TurboTax (unfortunately) automatically applies all the prior capital losses it can in the current tax year. It shows up on Line 25300 of T1 but it is the Loss Worksheet that you deal with any deferral (if you want to avoid an override of 25300). TurboTax even automatically uses the amount it calculates eligible and hence reduces the carry forward to next year even if it does not make a change to your tax owing. You have to manage this and use the Loss Worksheet to change the amount used in 2024 without activating the “override”.
Also, the Loss Worksheet layout has changed from prior years and, therefore, so has the place where you enter that info (as to what to apply in the current tax year (2024) and hence what gets carried forward to subsequent years). For 2024 this is Line 7 in Step 2.
HOWEVER, there is currently an error on Line 7 that does not allow a zero entry if you DO NOT want any of the prior losses to be used in 2024. This non-zero problem did not occur in subsequent years’ versions of the Loss Worksheet.
The location to indicate what prior losses you want to apply to 2024 is the first/left cell on Line 7 (immediately below the amount in Line 6), using that cell does not cause an override situation. That cell currently shows as a blank, but based on the way the subsequent calculations are shown/handled it should be displaying the amount from Line 6 immediately above. Illustrated as follows;
> if in that cell you enter the line 6 amount the calculation results don’t change,
> if you enter zero it treats it as if you have entered the Line 6 amount, again the calculation results don’t change,
The only way to get close to zero is to enter 0.01 (1 cent) and then it defers using any of the prior capital losses in 2024 except 1 cent. Clearly a problem with the coding and not a “forms from CRA” issue.
2) If you scroll down past Page 5 there is a sixth page (not numbered) with random unlabeled lines and cells. That needs to be cleaned up and to restore credibility.
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