Taxcycle seems to be incorrectly calculating an ending balance of CMT loss carryforward on line 770 of Ontario Schedule 510 when using prior year losses in 2016. This also causes the ending balance of loss amounts in Part 10 to be incorrect.
I think I have traced the culprit to the 2nd line in Part 3 - CMT Payable
Between lines 515 and 518 there is a line that says "Deduct: CMT loss available (amount R from Part 7). On my client’s return Taxcycle is leaving this value at 0 even though amount R (CMT loss available) has a large positive balance, which should have flowed to the line between 515 and 518.
Even though my corporation has enough taxable income to more than use up its prior year losses, this glitch causes the ending CMT loss continuity balance in Part 10 as well as the CMT loss carryforward balance (end of year) on line 770 to be incorrect. Basically speaking, the opening and ending balances are the same, although the ending CMT balance (line 770) should be zero.
If I override the amount in part 3 (between lines 515 and 518) with the correct figure from amount R of Part 7, everything seems to work out. ie the losses in Part 10 get applied in the year and line 770 properly becomes zero.
To test this, you would need to carryforward an Ontario T2 return with non capital loss carryforwards, and taxable income in 2016.
I can E-courier the offending T2 return if you are unable to replicate on your end.