When I changed the GIFI code in Tax Cycle it did not create a Refile file for me. Is there some way to make that happen, or someway to go into Rep a Client and make a change to the T2.
A Realized Loss was coded as an Unrealized Loss
makes no difference to the tax return…
@gaywise
Are you saying it was coded GIFI 9980 instead of GIFI 8210/8211/8212/etc?
As @BertMulderCGA says, it doesn’t matter. GIFI 8210/11/12 are added back on S1 line 111. GIFI 9980 is added back on S1 line 296. To have unrealized gains/losses treated as non-taxable/non-deductible, you have to determine if they fit one of the allowable types of reserves and fill out S13.
In your case, I assume you had some disposition of assets, for which you would have filled out S6? Then the loss would then have been deducted from taxable income appropriately (regardless of the GIFI code).
If your “realized loss” was part of net income (normal revenue/expense GIFI codes), then it would have flowed from S125 to S1.
Does that help?
Maybe not the technically correct answer, but I try to go for practicality. Unless there’s a change to the GIFI that puts my net income out, I usually don’t amend returns for GIFI coding. As long as the P&L is correct and any Sch1 adjustments needed are correct, I haven’t seen it go sideways yet.
That being said, I also avoid those super detailed line items and stick to the generic lines where possible. Then this type of problem is avoided altogether. Although you do miss some of those automatic S1 adjustments…