My client had some capital losses last year, but didn’t want to use it, as he was expecting some capital gain this year, but it’s another big loss year, so he wanted to use both current and last year’s losses now, carried back to 2 years ago when he had gains.
On the S4, it shows the carried forward amount and adds the current year on Part 2, but on line 953, looks like it only allows me to enter the current year losses, I tried to override the amount, but doesn’t look like it will clear the message?
Anyone know if there is a way to bypass that? Thanks
The losses should appear on the T1A - request for loss carryback, and then you can select the amount to apply to the previous year(s) in which the capital gains were incurred. Maximum carryback is 3 years.
The T1A applies to T1 filing (personal tax). @RRAccounting 's post talks about using the S4 to carry back losses, so I assume that means a T2 (corporate tax).
On a T1, the S4 is for Investment Income and Carrying Charges; on a T2 the S4 is is for Corporation Loss Continuity and Application.