Important Notice: If you wish to claim less than the loss amount calculated by the program, you must override the appropriate cell on the T1 jacket. The losses carryforward workchart is then updated. You should not override any cell in the workchart. You can, however, adjust the opening balances, where necessary.
General Rules
In this workchart, capital losses are allocated by taxation years since the deductible portion of such losses has not always been the same. The rate was 50% from 1972 to 1987 inclusively, 66.67% in 1988 and 1989, 75% from 1990 to 1999 inclusively and could vary from 50% to 75% in 2000, depending on the taxpayer’s rate of inclusion for the year 2000. For the 2001 and following taxation years, the deductible portion of capital losses is 50%.
The opening balance corresponds to the deductible portion of the loss according to the year in which it has been sustained. For instance, for a capital loss of $1,000 realized in 1987, enter $500 (unless that amount has been reported through the roll forward process).
The program adjusts the balance of capital losses available to be claimed in the year to take into account changes in the deductible portion.
Pre-1988 Capital Losses
Enter the portion of capital losses incurred before May 23, 1985 where they have not been carried forward through the roll forward process. The program calculates the amount of these losses (up to a maximum of $2,000) that can be applied against income other than capital gains. Override the cell to claim less than the maximum.
Capital losses incurred between May 23, 1985 and December 31, 1985 should be entered separately because of their relevance in Form T691 with respect to minimum tax calculations.
See Also