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Returning Member
posted Sep 19, 2023 12:10:32 PM

Tracing the origin of a Turbotax calculated Investment Expense input to line 68080 of 2022 CRA tax return

How do I trace the origin of an Investment Expense which appears on line 68080 and 23200 of my tax return?

The $ amount has not been input by me - it appears to be the result of a Turbotax calculation - but what calculation? Is there a way to trace how Turbotax does this calculation?

 

A $ amount - which has not been input by me - appears on Line 68080 of the T936 E form and ends up being added by Turbotax into the total investment expenses claimed.

 

 

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19 Replies
Moderator
Sep 20, 2023 6:22:13 AM

Line 698080 -Any other investment expenses claimed in 2022 to earn property income.

 Investment expenses claimed on your 2022 return includes;

 

Other investment expenses Include: • repayments of inducements • repayments of refund interest • the uncollectible portion of proceeds from dispositions of depreciable property (except passenger vehicles that cost more than $30,000 ($34,000 for vehicles acquired in 2022 or later years) and were not, at any time, designated immediate expensing property) • sale of agreement for sale, or mortgage or hypothecary claim included in proceeds of disposition in a previous year under subsection 20(5) • foreign non-business tax under subsections 20(11) and 20(12) • life insurance premiums deducted from property income • capital cost allowance claimed on certified films and videotapes • farming or fishing losses claimed by a non-active partner or a limited partner.

 

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Returning Member
Sep 20, 2023 12:14:13 PM

Thank you TurboTax Brenda!

The 'Other Deductions' part of the return identifies the amount as  'foreign  tax deduction under Section 20(12)'. 

What I need to know, for the CRA,  is how the amount is calculated - from which inputs - (presumably T3s and T5s) and the formulae used. 

Are you able to shed light on this?

Is there any way of 'getting in to Turbotax' to see this information?

Moderator
Sep 20, 2023 12:47:18 PM

I suggest that you contact our phone support team who can view your screen and assist you further or have someone contact you to go through it with you.

 

Thank you for choosing TurboTax.

New Member
Sep 28, 2023 5:33:54 AM

I received a 'review letter' from CRA asking for receipts to prove what the amount for deduction listed on line 68080 is. Does anyone have an answer for how this number was generated? I'm assuming foreign tax of some sort but can't be sure. Any help is much appreciated! 

Returning Member
Sep 28, 2023 5:46:05 AM

I have received the same thing from Cra. Where does this number come from and i can't seem to figure out how they calculated it or where it came from for line 68080. Any help is appreciated 

Moderator
Oct 2, 2023 6:33:35 AM

Can you please let me know if you were using TurboTax Online or TurboTax download version- so that we can assist further?


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Returning Member
Oct 2, 2023 3:59:43 PM

 

I was using the TurboTax Online version.

Moderator
Oct 3, 2023 7:20:36 AM

This calculation is from any investment expenses to earn property income.  Can you please confirm if you have property income? 

 

New Member
Oct 5, 2023 9:22:27 PM

I just got the same thing and can't figure out where the number came from. Please help

Returning Member
Oct 5, 2023 9:31:23 PM

Hi. 

It is not from investment expenses to earn property income. None such were reported anywhere in my return.

In the "Other Deductions - line 23200" the Turbotax Return states that the amount comes from "Foreign tax deduction under subsection 20(12).

The only place in my return that records foreign tax paid on investments is in the T3s and T5s.

However, the tax reported to have been paid in these forms does not match what Turbotax reports as the Foreign tax deduction - so there must be some formula applied by Turbotax to the T3/T5 taxes paid to calculate the deduction amount. This calculation is what I need to understand.

Returning Member
Oct 5, 2023 9:38:08 PM

Hi.

See my earlier reply just posted.

Your return is likely different to mine, but in my case the number is stated by Turbotax  as a Foreign tax deduction under subsection 20(12)

The only place in my return where foreign taxes paid are reported is in my T3/T5s.

The trick is, however, to understand how the deduction reported by Turbotax  for Foreign tax paid is calculated as it does not match the numbers in my T3/T5s. There has to be a formula applied.... presumably Turbotax uses a CRA supplied formula in its program which spits out the deduction number.

Returning Member
Oct 6, 2023 5:00:02 AM

Ok perfect. That was kind of what we figured out with the turbo tax online support. Its wierd how they calculate this number and don't just ask for it off your T5 as i did find the foreign tax paid on my T5 but it was a few cents different than the calculated number on my return. It should have a box number for this in my opinion save alot of head ache.  

Moderator
Oct 6, 2023 6:36:32 AM

Can you please clarify if you claimed anything in the following list:

This is from the Cumulative Net Investment Loss form CNIL

 

 

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Returning Member
Oct 6, 2023 8:18:22 AM

i beleieve it fell under the foreign non business tax under subsection 20(11)

Returning Member
Oct 6, 2023 9:47:56 AM

Hi.

Thanks for your continuing interest in this matter.

Turbotax has the deduction labelled under 'Other Deductions" as "Foreign tax deduction under subsection 20(12)".

See my earlier explanation of it. As I stated, the only place where foreign tax payments are reported in my return is in the T3/T5s.

Moderator
Oct 6, 2023 11:18:40 AM

Thank you for the feedback on this- I will reach out to the appropriate team to see what our next step is.

 

I will get back to you as soon as possible.

 

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New Member
Oct 6, 2023 11:49:08 AM

On my return it appears to be related to foreign income on my T5. When I delete the T5 that has foreign income the amount goes away. Problem is the amount on the line does not match anything on the slips. I need to know how the amount is calculated.

Returning Member
Oct 10, 2023 10:10:36 AM

I have the same issue.

 

Moderator
Oct 11, 2023 7:11:14 AM

If you are still needing guidance to this please contact phone support and if they need to, they can start an investigation for you and have someone contact you directly. 

 

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