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Level 1
posted May 29, 2020 11:35:01 AM

Removing NETFILE Restriction - Spin-off Shares

When I was creating a 2019 return, one of the questions was asked at the start of the return was:

      "Are you electing to defer tax on a distribution of spin-off shares by foreign corporations."

If yes, then you needed to provide some an 86.1 election and mail in your return.  I selected that option.  However on reflection we are no longer deferring the tax and thus would like to NETFILE.  However, I can't seem to undo that question.  I've cleared everything I can think of to remove the restriction. 

 

Is there a way to start over and go through it again?  This is joint return, with one of the returns already NETFILE, otherwise I would just delete the whole return and start over.  Thoughts?

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1 Best answer
Level 4
May 31, 2020 2:04:30 PM

Hi,

 

1. In Forms Mode, do a form search for "Netfile" and select the Netfile worksheet.

 

2. In the top section, after "Do any of the above situations apply?", look for the question "Are you electing to defer tax on a distribution of spin-off shares by foreign corporations?" and change your answer. 

2 Replies
Level 4
May 31, 2020 2:04:30 PM

Hi,

 

1. In Forms Mode, do a form search for "Netfile" and select the Netfile worksheet.

 

2. In the top section, after "Do any of the above situations apply?", look for the question "Are you electing to defer tax on a distribution of spin-off shares by foreign corporations?" and change your answer. 

Level 1
Jun 1, 2020 9:25:04 AM

Thank you for your response.  I decided not to wait and NETFILED a new return by re-entering the data just a few hours before your reply.  However, I looked at your solution, found it and know for next time that this will work much better.