Foreign Property with Capital Loss


I have a client with Foreign Properties in T1135. He sold one of them with a capital loss. when I put the capital loss in the foreign form, TaxCylce adds this capital loss into T1A form Part 5, Line M (ready to carry back against the last 3 years’ capital gains)

My question is: Can we claim FOREIGN capital losses (from a real property reported in T1135) against capital gains from Canada? Because I think we can claim foreign capital losses just against foreign capital gains? Is that correct or I’m missing something?


I think you are looking for S38(b) and 39(1) and look for the definition of Property 248(1)

I think a lot of tax returns would be completed and filed incorrectly if one could only apply foreign capital losses against foreign capital gains.

" a real property reported in T1135"

What has the reporting of assets on the T1135 return got to do with a capital gains issue on a T1 return?
:apple: / :tangerine:

Assets with a cost of $99,999 (or lower) are treated no differently than assets with a cost of $100,001 (or higher).
Where in the ITA does it say different?i

Also, at this point, likely it will take until after the tax deadline to retrace the proper ACB in Canadian dollar terms, in order ta actually compute the correct reporting numbers for capital gains.

T1135 is only currently for disclosure. The capital loss must also be reported on Schedule 3.