capital gain stock, and capital loss

hllclk · ‎March 22, 2023

one of the clients has capital gain in the last 2 years, and capital loss in 2022. how can i carry back the loss, what is the schedule and what i should do, need help. thanks

janisbossenberry · ‎March 23, 2023

If there is a loss in the current year and if it is available for carryback, the "auditor" (diagnostics) will tell you that. If you click on that diagnostic, it will take you to the appropriate form (T1A). On the T1A, the amount of the loss available for carryback will show in Part 5, and there are 3 lines below that for the 3 years you can carry it back to. Normally, you carry the loss back to the earliest possible year that had a gain, however you first want to ensure that the taxpayer actually paid tax in that year. Carry the loss back to whichever year had the highest marginal tax rate. If no tax was paid, it is better to carry the loss forward.

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janisbossenberry · ‎March 23, 2023

If there is a loss in the current year and if it is available for carryback, the "auditor" (diagnostics) will tell you that. If you click on that diagnostic, it will take you to the appropriate form (T1A). On the T1A, the amount of the loss available for carryback will show in Part 5, and there are 3 lines below that for the 3 years you can carry it back to. Normally, you carry the loss back to the earliest possible year that had a gain, however you first want to ensure that the taxpayer actually paid tax in that year. Carry the loss back to whichever year had the highest marginal tax rate. If no tax was paid, it is better to carry the loss forward.