Net Capital Loss Carrybacks - Not seeing change to 2021 Balance

Forum|Forum|4 years ago
February 21, 2022
1 reply
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Hi, I have capital losses that I want to apply against gains from 2018. I have put in my stock losses for this year and I go to the Net Capital Loss Carry Back screen and apply the loss amount to the year 2018 where I have the gains to apply my losses to. I would have expected to see my 2021 Balance Due increase but it does not change. Can someone give me some insight into this as I would expect to get some money back for this loss and I believe I'm entering it correctly against the gains from a previous year. I have not done this before in terms of applying a loss to a previous years gain.

Thank you.

TurboTax Online Premier

ram06

A net capital loss can only be carried back to reduce taxable capital gains in any of the three prior years. Any available taxable capital gains will be shown on your prior year’s Notice of Assessment or Notice of Reassessment. Your carryback amounts won't affect this year's tax return

Here are the steps to carry back a net capital loss using Turbo Tax:

Select Find and enter losses in the search bar
Select Losses from the search results, then Go
Select the Request for Loss Carryback box
Select Continue until you reach the Net Capital Loss Carrybacks screen
The maximum net capital loss that you can carry back is listed. Enter the amount(s) you wish to carry back for each applicable year, then select Continue

For further information and guidance, please see our TurboTax links below.

TurboTax FAQ/video Where do I report capital gains or losses in TurboTax Online?

TurboTax article Claiming Capital Gains and Losses

Thank you for choosing Turbo Tax.

TurT123Author

Hi Ram06. Yes I followed those steps. Just want to confirm, I mentioned that TurboTax did not show any increase in my balance due in my 2021 taxes within TurboTax Premier online when I applied this years losses against gains from 2018. I was expecting to see the balance due increase but I didn't. Is that expected?

GHarpe

Yes, the difference would occur to your 2018 return, which will be reassessed by the Canada Revenue Agency (CRA) when you send them the T1A. Your 2021 return will not change.

Please see our TurboTax article Carrying Capital Losses to a Different Year

Thank you for choosing TurboTax.