T2 Schedule 4 Part1

Tax Topics
1

Hi,
What information is required for lines 901 to 903 of Schedule 4 in T2 in the section

Request to cary back non-capital loss to:?

Should it involve the taxable income from prior years (from line 360) or the taxes paid in prior years?

Thanks

2

Taxable income, not taxes paid. Use the oldest year(s) first. You can carry back the current year non-capital loss to the prior 3 years. Max per year is the original taxable income. But, don’t just blindly plug in the numbers without first checking out the prior years to make sure you aren’t inadvertently screwing up something else. If the prior year return was anything but straightforward, carrying back a subsequent loss can have unfavourable consequences. So, check out the effects on the prior year first.