Close

Our Privacy Statement & Cookie Policy

All Thomson Reuters websites use cookies to improve your online experience. They were placed on your computer when you launched this website. You can change your cookie settings through your browser.

T1
401 Bankruptcy

Print this pageForward this document  Self-employed income in pre-bankruptcy generates an incorrect carryforward in post-bankruptcy

Program(s) affected: T1 Document created: 02 25, 2013
Tax year(s): 2012 Document last modified:
Version(s): 16.01, 16.10 Problem status: Fixed in v16.11

My client went bankrupt, and when I review the carryforwards of pre-bankruptcy amounts to post-bankruptcy, the amount carried forward under the keyword PreBank-Fed for QPP (or CPP) pensionable employment earnings is not consistent with the employment earnings during the pre-bankruptcy. Why is that?

The program carries forward the CPP/QPP net pensionable self-employed earnings during pre-bankruptcy to two locations instead of one in the post-bankruptcy. As a workaround, please substitute the carryforward amount in the keyword PreBank-Fed , for option "CPP - Pensionable employment earnings"* with the appropriate amount (for instance, if the taxpayer had no pensionable employment income in the pre-bankruptcy, then the amount will be $ 0).

* For Quebec residents, the option would read "QPP - Pensionable employment earnings".