Question

Can We use Capital Losses from 2020 year to 2021 Capital gain to offset

Forum|Forum|3 years ago
April 29, 2022
1 reply
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I see the amount of available losses is shown on completed forms but taxable income reduction not done

As per the Canada Revenue Agency (CRA), you can apply your net capital losses from prior years to your taxable capital gains in 2021.

Follow the applicable instructions below to carry back a net capital loss in TurboTax:

Instructions for TurboTax Online

Note: 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.

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
You've now carried back your net capital loss. Your carryback amounts won't affect this year's tax return