Dear colleagues,
First of all, I want to thank you all for sharing your knowledge and experience.
I have client who passed away in 2020.
He has over 100K in capital loss from prior years. He does not have cap gain in 2020 nor in the past 3 years.
As per the ITA, we can apply capital loss against other income in the year of death AND the previous year (2019 in this case).
TaxCycle, on the 2020 NET CAPITAL LOSS WORKSHEET says to file a T1Adj for 2019.
However, I also found the following statement while searching online:
“To carryback a capital loss, fill out section II on form T1A, Request for Loss Carryback. You do not have to file an amended return for the year to which you want the loss applied”.
I did fill out 2020 T1A, line “Portion applied to 2019. Complete T1ADJ and submit to CRA” in TaxCycle.
Do I have to file a 2019 T1Adj? and if so, where do I input this amount? (I’ve tried, but was not able to find the proper line).
Thank you all so much!!