CARRY FORWARD PROVISIONS CONCERNING CAPITAL PROVISIONSYou have made a capital gain and you are claiming a reserve on the capital gain. We recommend that you read the chapter, "Claiming a reserve" in Guide T4037 Capital gains.
To know the rules for this reserve, you may visit the following link:
https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4037.html
Also, you could review the T2017 Summary of reserves on dispositions of capital property, which you can find at the following link:
https://www.canada.ca/en/revenue-agency/services/forms-publications/forms/t2017.html
For Quebec residents, please visit the following link
https://www.revenuquebec.ca/en/online-services/forms-and-publications/current-details/in-120-v/
Please read Part 5 of the guide IN-120.If you need to carry forward the provision manually because you did not use the same software as the previous year.
Please follow the steps below:
1 - On the "Left side menu on the Interview tab", select "Interview setup";
2 - On the screen on your right, go to "Investment income and expenses" group, check the box for "Capital gains (or losses) and capital gain history" and click "Next" at the bottom of the page;
3 - Go back to the "Left side menu on the Interview tab" and select the "Capital gains (or losses) & ABIL" and the page on your right, choose the line "Capital gain reserves";
4 - On the page that appears, choose the section that applies to you, usually in "Dispositions of property other than dispositions described above" should be used. In this section, on the lines ''Opening balance for this year" enter the amount that has been reported on 6699 line of Form T2017. For Quebec residents the amount that was listed on your Schedule G of the previous year.
5 - On the line ''Closing balance for this year", enter the amount reported if applicable.
The program will report your gain on Schedule 3 and generate Form T2017 of the Federal return.
For residents of Quebec, Schedule G is generated by the program and the amount of provision will be reported on line 38, if applicable, while the capital gain will be on line 44.
Please note that you can carry a capital gain over a period of five years, and you must report a capital gain of at least 20 % each year.
ID: 20191217123429IB.xml
Webpage: KPA330-20191217123429IB.htm