Quick question on non-capital loss carrybacks. If I carry back a business loss for a client who was under the CPP maximum in the year carried back to, will she get her CPP paid back in addition to the income tax? That would potentially be an additional 9% back.
Thanks!
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No. CPP payable is calculated on S8, based on amounts from lines 12200, 13500, 13700, 13900, 14100, 14300. The deduction for non-capital losses shows up on line 25200. So, the CPP calculation for that year won’t change.
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Thanks @Nezzer !
Is there a quick way to calculate the revised tax payable for loss carrybacks other than going back to those previous returns and running scenarios? The T1A Loss Carryback worksheet has that field as an input value.
Not that I know of. Kind of doubt it, because it requires the full calculation of that prior year. But, you could ask TaxCycle directly?