I’m getting a message on the T1 - 2024:
T691 Line 67922
Line 25300
The net capital losses of prior year to 2024 come from 2022
2024 - T1
T1 - 2022
Can someone point me in the direction on how to handle this message I’m getting?
There is another thread on this forum where this is discussed. If I find it again, I’ll post a link. But, basically TaxCycle is telling you that, because the bill which proposed these changes hasn’t received royal assent, and CRA’s administrative practice/guidelines keep changing, and the ambiguity is too much to code into software, you need to be aware that TaxCycle’s calculation of this amount may not be correct.
I have generally been dismissing the notice after doing a quick check to ensure that AMT won’t apply to the client regardless of the treatment of net capital losses. For those few clients where this discrepancy MIGHT have an effect, I talk to the client and let them know that the calculation might be wrong, and it will cost them an elephant for me to figure out if it affects them and by how much. So, just be aware that CRA may somehow, someday (years from now) decide there was a mistake and re-assess you. But, if that happens, you won’t be the only one affected, so they might be persuaded to waive most penalties and interest.
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Thank you for the reply.
Yes, in this taxpayer’s case AMT won’t apply.
However, I wanted to know how to calculate/get the - Amount of losses deductible for AMT purposes.
I found the link to the other post - thank you @Nezzer