Calculation of net capital losses of other years in the year of death

Program(s) affected: T1 Document created: 02 23, 2016 Tax year(s): 2015 Document last modified: Version(s): 19.10, 19.12 Problem status: Fixed in v19.13

My client passed away during the tax year and had net capital losses carried forward from other years. These carryforwards are entered in the keyword group Net-Cap-Loss. Why is DT Max entering on line 253 of the T1 an amount that is higher than the amount of losses carried forward?

This is a program calculation error which occurs when your client has taxable capital gains (line 127 of the T1) realized in the year of death along with net capital losses carried forward.

As a workaround, please override the amount on federal line 253 by using the keyword Override and enter the correct carryforward amount.

Please note that DT Max will render the tax return ineligible for EFILE whenever the keyword Override is being used. Therefore, if your client's tax return is eligible for federal EFILE, please use the keyword Efile and choose the option "Yes - even if ineligible".