  Losses |
Use CMT-CF to enter any Ontario Corporate Minimum Tax (CMT) losses or credits carried forward.
The following options are applicable for the keyword CMT-CF.
CMT Loss or cr of corp
CMT Loss or cr of pred corp - amalg
CMT Loss or cr of pred corp - wind-Up CMT losses and credit carryovers which were transferred by predecessor corporations in an amalgamation or wind-up of a subsidiary into its parent corporation must be disclosed in parts 3, 4 and 7 of federal schedule 510.
Use Credit-AOC to indicate whether or not the corporation is claiming a CMT credit earned before an acquisition of control.
If yes, the CMT credit deducted in the current year may be restricted.
The following options are applicable for the keyword Credit-AOC.
CMT losses carried forward should be entered in Loss-CF.
The following options are applicable for the keyword Loss-CF.
Current year
1st prior year
2nd prior year
3rd prior year
4th prior year
5th prior year
6th prior year
7th prior year
8th prior year
9th prior year
10th prior year
11th prior year
12th prior year
13th prior year
14th prior year
15th prior year
16th prior year
17th prior year
18th prior year
19th prior year
20th prior year
Use the keyword Adjust-AOC to enter an adjustment for an acquisition of control. This is the portion of the CMT loss available that exceeds the adjusted net income for the tax year from business(es) continued from before the acquisition of control.
For CMT losses carried forward which were transferred from a predecessor corporation in an amalgamation between two corporations or a wind-up of a subsidiary into its parent corporation, enter losses which were incurred after 1993 (when CMT applied) in Post93LossCF. These are losses which were incurred by the predecessor corporations in the ten taxation years after 1993 which have been recalculated on a CMT basis.
The following options are applicable for the keyword Post93LossCF.
Current year
1st prior year
2nd prior year
3rd prior year
4th prior year
5th prior year
6th prior year
7th prior year
8th prior year
9th prior year
10th prior year
11th prior year
12th prior year
13th prior year
14th prior year
15th prior year
16th prior year
17th prior year
18th prior year
19th prior year
20th prior year
Use CMTCredit-CF to enter any Ontario Corporate Minimum Tax (CMT) credit carryovers of previous years. CMT payable in a year can be carried forward for ten years. The CMT carryover can be used to reduce a corporation's regular income tax liability in subsequent taxation years.
The following options are applicable for the keyword CMTCredit-CF.
Current year
1st prior year
2nd prior year
3rd prior year
4th prior year
5th prior year
6th prior year
7th prior year
8th prior year
9th prior year
10th prior year
Use CMTCr-Lim to limit the amount of CMT credit to be claimed in the current tax year.
Use the keyword Forgive-Debt to indicate the amount of the loss reduction of a forgiven debt obligation.
The following options are applicable for the keyword Forgive-Debt.
Capital property loss If the prior year rate differs from the rate in the year of the loss, DT Max will make an adjustment on Schedule 4 (T2A) to calculate the amount of the loss which can be applied in the current or a prior year. Loss carrybacks will appear on Schedule 4 (T2A).
Restricted farm loss Restricted farm loss carrybacks will appear on Schedule 4 (T2A).
Farm loss Farm loss carrybacks will appear on Schedule 4 (T2A). These losses can be applied to reduce either the prior year's taxable income or part IV tax. Indicate what the loss is to be applied to in the AppliedToTax keyword.
Non capital loss Non capital loss carrybacks will appear on Schedule 4 (T2A). These losses can be applied to reduce either the prior year's taxable income or part IV tax. Indicate what the loss is to be applied to in the AppliedToTax keyword.
Use [Alt-J] to enter different values for other jurisdictions.
 See the Taxnet Pro™ T2 Line-by-Line Guide (subscription required):
Line 204 - Losses
In reference to subs. 111(10) of the Income Tax Act, use FuelTax-Reb to enter the amount received as a fuel tax rebate that will reduce the preceding year's non capital loss.
Use LimPartLoss to enter the current year limited partnership loss of the corporation. The amount entered will appear on schedule 4 for this partnership. The deductible amount is calculated based on the at-risk amount entered in the At-RiskAmt keyword below. Use [Alt-J] to enter different values for other jurisdictions.
See the Taxnet Pro™ T2 Line-by-Line Guide (subscription required):
Line 204 - Losses
Enter the limited partnership name here typed in the same way as in the Name.lim keyword in the RelatedParty group of the same partnership. Enter its identification number in the PIN-Id keyword in that RelatedParty group.
Enter the current year loss, prior year losses carried forward and the at-risk amount of this partnership in the LimPartLoss group of this partnership. The current year loss and losses carried forward will appear on schedule 4.
Use the keyword YearEnd.par to indicate the year end of the limited partnership.
Do not use this keyword to enter a limited loss for the current year.
Limited partnership losses carried forward must be separated for each limited partnership of which the corporation is a member. Enter the limited partnership identification number in the PIN-Id keyword in the RelatedParty group of the partnership and the same partnership name in the Name keyword above. The name must be typed in the same way in both keywords.
Enter the at-risk amount for this partnership in the At-RiskAmt keyword in the LimPartLoss group of the same partnership. DT Max will limit the limited partnership losses deductible in the year from this partnership to the at-risk amount. Use [Alt-J] to enter different values for other jurisdictions.
See the Taxnet Pro™ T2 Line-by-Line Guide (subscription required):
Line 335 - Limited partnership losses - previous years
 See the CRA's general income tax guide:
Line 335 - Limited partnership losses of previous tax years
Adjust-CF adjustments to loss carryforward balances include adjustments resulting from tax assessments. These adjustments will appear on schedule 4. Use [Alt-J] to enter different values for other jurisdictions.
Use At-RiskAmt to enter the at-risk amount for this partnership. DT Max will use this amount to limit the amount of current or prior year limited partnership losses of this partnership which are deducted this year. Use [Alt-J] to enter different values for other jurisdictions.
Use LossCB to carry back current year losses to a previous year.
The following options are applicable for the keyword LossCB.
Capital property loss If the prior year rate differs from the rate in the year of the loss, DT Max will make an adjustment on Schedule 4 (T2A) to calculate the amount of the loss which can be applied in the current or a prior year. Loss carrybacks will appear on Schedule 4 (T2A).
Listed personal property loss Listed personal property loss carrybacks must be requested separately from the current year return. Amending the prior year return should be requested.
Restricted farm loss Restricted farm loss carrybacks will appear on Schedule 4 (T2A).
Farm loss Farm loss carrybacks will appear on Schedule 4 (T2A). These losses can be applied to reduce either the prior year's taxable income or part IV tax. Indicate what the loss is to be applied to in the AppliedToTax keyword.
Non capital loss Non capital loss carrybacks will appear on Schedule 4 (T2A). These losses can be applied to reduce either the prior year's taxable income or part IV tax. Indicate what the loss is to be applied to in the AppliedToTax keyword.
See the Taxnet Pro™ T2 Line-by-Line Guide (subscription required):
Line 204 - Losses
Enter the amount of the loss to be carried back and the year to which you want the loss carried back to be applied.
The following options are applicable for the keyword Amount-CB.
1st prior year
2nd prior year
3rd prior year
Use [Alt-J] to enter different values for other jurisdictions.
AppliedToTax is relevant to farm and non capital losses only. These losses can be applied to reduce taxable income (part I tax) or taxable dividends (part IV tax).
The following options are applicable for the keyword AppliedToTax.
Apply to taxable income Losses applied to reduce taxable income will be deducted on page 3 for prior year losses deducted or on Schedule 4 (T2A) for losses carried back.
Apply to part IV tax Losses applied to reduce part IV tax will be deducted from current year taxable dividends on the T2 return or on Schedule 4 (T2A) for losses carried back.
Use LossCBRefund if the refund code desired for this client's refund of prior year income taxes due to a loss carryback is not the same as the code chosen in your user defaults setup for DT Max T2.
The following options are applicable for the keyword LossCBRefund.
Claim refund Choosing "Claim refund" indicates that you are claiming the refund now.
Future tax liability Choosing "Future tax liability" indicates that the refund is to be applied to future years' taxes payable.
Other tax liability Choosing "Other tax liability" indicates that the refund is to be applied to another type of tax liability of the corporation.
Transfer to a third party Choosing "Transfer to a third party" indicates that any amount owed to the corporation under the Taxation Act may be transferred to a third party without, however, the government being obligated to do so.
See the Taxnet Pro™ T2 Line-by-Line Guide (subscription required):
Line 204 - Losses
Use ProvRefund.c if the refund code desired for this client's provincial refund of prior year income taxes due to a loss carryback is not the same as the code chosen in the LossCBRefund keyword above.
The following options are applicable for the keyword ProvRefund.c.
Claim refund Choosing "Claim refund" indicates that you are claiming the refund now.
Future tax liability Choosing "Future tax liability" indicates that the refund is to be applied to future years' taxes payable.
Other tax liability Choosing "Other tax liability" indicates that the refund is to be applied to another type of tax liability of the corporation.
Transfer to a third party Choosing "Transfer to a third party" indicates that any amount owed to the corporation under the Taxation Act may be transferred to a third party without, however, the government being obligated to do so.
See the Taxnet Pro™ T2 Line-by-Line Guide (subscription required):
Line 204 - Losses
Enter all loss carryforwards of a particular loss type in the LossCF group for that type. All losses entered will appear on schedule 4. DT Max will calculate the amount, if any, of losses which can be deducted against net income for tax purposes this year.
DT Max will optimize losses applied by claiming losses available in the following order:
1. Losses which are expiring this year:
i Restricted farm losses against farm income;
ii Listed personal property (LPP) losses against LPP gains;
iii Non capital losses;
iv Farm losses;
2. Losses which are expiring next year:
i Restricted farm losses against farm income;
ii Listed personal property losses (LPP) losses against LPP
gains;
iii Non capital losses;
iv Farm losses;
3. Remaining losses available which can be applied:
i Listed personal property losses (LPP) losses against LPP
gains;
ii Net capital losses against taxable capital gains;
iii Restricted farm losses against farm income;
4. Remaining losses claimed - oldest losses first:
i Non capital losses;
ii Farm losses;
5. Limited partnership losses - limited by at-risk (AT-RISKAMT
keyword) amount of limited partner, if entered.
The following options are applicable for the keyword LossCF.
Capital property loss Enter the allowable amount of capital property losses. These losses can be carried forward indefinitely and carried back three years against taxable capital gains. For loss carryforwards, DT Max uses the prior year to determine the inclusion rate of the loss incurred. If the rate is different from the rate in the year of a capital gain, an adjustment is required to calculate the amount of the loss which can be applied in the current or a prior year. Loss carryforwards/carrybacks will appear on Schedule 4.
Listed personal property loss Listed personal property losses can be carried forward seven years and carried back three years. Loss carryforwards will appear on Schedule 4. Loss carrybacks must be requested separately.
Restricted farm loss Restricted farm losses can be carried forward ten tax years if it arose in a tax year ending before 2006, 20 tax years if it arose in a tax year ending after 2005 and carried back three years against farming income. Loss carryforwards and carrybacks will appear on Schedule 4. Such losses arise when farming is not the corporation's chief source of income. If farming is the chief source, choose the relevant farming corporation type in the Activity keyword.
Farm loss Farm losses can be carried forward ten tax years if it arose in a tax year ending before 2006, 20 tax years if it arose in a tax year ending after 2005 and carried back three years. Loss carryforwards and carrybacks will appear on Schedule 4.
Non capital loss Non capital losses can be carried forward ten tax years if it arose in a tax year ending after March 22, 2004, and before 2006, 20 tax years if it arose in a tax year ending after 2005 and carried back three years. Loss carryforwards and carrybacks will appear on Schedule 4.
Allowable business investment loss Allowable business investment losses can be carried forward indefinitely and carried back three years. Loss carryforwards will appear on Schedule 4. For losses that become net capital losses, use the keyword LossCF and the option "Capital property loss" to have the losses appear on Schedule 4.
See the Taxnet Pro™ T2 Line-by-Line Guide (subscription required):
Line 204 - Losses
Line 331 - Non capital losses - previous years
Line 332 - Net capital losses - previous years
Line 333 - Restricted farm losses - previous years
Line 334 - Farm losses - previous years
See the CRA's general income tax guide:
Line 331 - Non-capital losses of previous tax years
Line 332 - Net-capital losses of previous tax years
Line 333 - Restricted farm losses of previous tax years
Line 334 - Farm losses of previous tax years
Non capital and other losses should be entered in Amount-CF.l; a separate LossCF group is required for each loss type. The amount entered here will print as the opening balance of the loss on schedule 4.
The following options are applicable for the keyword Amount-CF.l.
1st prior year
2nd prior year
3rd prior year
4th prior year
5th prior year
6th prior year
7th prior year
8th prior year
9th prior year
10th prior year
11th prior year
12th prior year
13th prior year
14th prior year
15th prior year
16th prior year
17th prior year
18th prior year
19th prior year
20th prior year
Use [Alt-J] to enter different values for other jurisdictions.
Use this keyword to enter gross capital losses. This amount will appear as the opening balance of the loss on schedule 4. Use [Alt-J] to enter different values for other jurisdictions.
Adjust-CF.l adjustments to loss carryforward balances include losses acquired on an acquisition of control and adjustments resulting from tax assessments. These adjustments will appear on schedule 4.
The following options are applicable for the keyword Adjust-CF.l.
1st prior year
2nd prior year
3rd prior year
4th prior year
5th prior year
6th prior year
7th prior year
8th prior year
9th prior year
10th prior year
11th prior year
12th prior year
13th prior year
14th prior year
15th prior year
16th prior year
17th prior year
18th prior year
19th prior year
20th prior year
Use [Alt-J] to enter different values for other jurisdictions.
Use this keyword to enter adjustments to capital loss carryforward balances which include losses acquired on an acquisition of control and adjustments resulting from tax assessments. These adjustments will appear on schedule 4. Use [Alt-J] to enter different values for other jurisdictions.
Use this keyword to override the inclusion rate that was used to calculate the allowable business investment loss.
For ABIL's incurred in 1999 and preceding years, the inclusion rate is equal to 75%. For ABIL's incurred in 2000 and 2001 tax years, the inclusion rate is equal to amount M on Schedule 6 - version T2SCH6(01). For ABIL's incurred in 2002 and later years, the inclusion rate is equal to 50%. Use [Alt-J] to enter different values for other jurisdictions.
Enter all loss carryforwards of a particular type which were transferred from a predecessor corporation in an amalgamation between corporations or a wind-up of a subsidiary corporation into its parent here. The total losses entered will be shown on schedule 4. DT Max will consider these losses when calculating the amount, if any, of losses which can be deducted against net income for tax purposes this year.
The following options are applicable for the keyword LossCF-Pred.
Capital property loss Enter the allowable amount of capital property losses. These losses can be carried forward indefinitely and carried back three years against taxable capital gains. For loss carryforwards, DT Max uses the prior year to determine the inclusion rate of the loss incurred. If the rate is different from the rate in the year of a capital gain, an adjustment is required to calculate the amount of the loss which can be applied in the current or a prior year. Loss carryforwards/carrybacks will appear on Schedule 4.
Restricted farm loss Restricted farm losses can be carried forward ten tax years if it arose in a tax year ending before 2006, 20 tax years if it arose in a tax year ending after 2005 and carried back three years against farming income. Loss carryforwards and carrybacks will appear on Schedule 4. Such losses arise when farming is not the corporation's chief source of income. If farming is the chief source, choose the relevant farming corporation type in the Activity keyword.
Farm loss Farm losses can be carried forward ten tax years if it arose in a tax year ending before 2006, 20 tax years if it arose in a tax year ending after 2005 and carried back three years. Loss carryforwards and carrybacks will appear on Schedule 4.
Non capital loss Non capital losses can be carried forward ten tax years if it arose in a tax year ending after March 22, 2004, and before 2006, 20 tax years if it arose in a tax year ending after 2005 and carried back three years. Loss carryforwards and carrybacks will appear on Schedule 4.
Limited partnership loss Limited partnership losses can be carried forward indefinitely. Losses are deductible to the extent of the at-risk amount. Enter the current year limited partnership loss, loss carryforwards and the at-risk amount relating to each partnership of which the corporation is a limited partner in the LimPartLoss, Amount-CF and At-RiskAmt keywords in the LimPartLoss group. Loss carryforwards will appear on Schedule 4.
See the Taxnet Pro™ T2 Line-by-Line Guide (subscription required):
Line 204 - Losses
The opening balance of the loss carryforward for this corporation and the prior year in which it was incurred should be entered here.
The following options are applicable for the keyword Amount-CF.p.
Current year
1st prior year
2nd prior year
3rd prior year
4th prior year
5th prior year
6th prior year
7th prior year
8th prior year
9th prior year
10th prior year
11th prior year
12th prior year
13th prior year
14th prior year
15th prior year
16th prior year
17th prior year
18th prior year
19th prior year
20th prior year
Use [Alt-J] to enter different values for other jurisdictions.
The opening balance of the total limited partnership losses carryforward for this corporation should be entered here. Use [Alt-J] to enter different values for other jurisdictions.
The inclusion rate entered in Amount-CF.c is required to determine the amount of the capital loss which can be applied in the future against capital gains; if when the loss was incurred the inclusion rate was different than that of the capital gain, an adjustment to the net capital loss is required. Enter the inclusion rate as "50.00", "66.6667" or other rate.
The inclusion rate which applied at the following dates is as follows (if
the loss was incurred in a taxation year which straddles the date on which
the rate changed, a prorated inclusion rate must be calculated. The CRA
requires that the prorated rate calculated include at least 7 decimal places):
Inclusion rate Corporation type Effective date
50% CCPC Before 1988
All other Before July 88
66 2/3% CCPC After 1987 & before 1990
All other After June 88 & before 1990
75% All corp. After 1989
Before February 28, 2000
66 2/3% All corp. After Feb. 27 2000 & before Oct. 18 2000
50% All corp. After October 17, 2000
Use [Alt-J] to enter different values for other jurisdictions.
Enter the limited partnership identification number in the PIN-Id keyword in the RelatedParty group of the partnership and the same partnership's name in the Name keyword here. The limited partnership name should be typed in the same way in both keywords.
Use the keyword LossParent to indicate whether or not the corporation has elected under paragraph 88(1.1)(f) of ITA. (Loss from a wholly-owned subsidiary deemed to be a loss of the parent from its immediately preceding taxation year).
The following options are applicable for the keyword LossParent.
LossLim allows you to limit the amount of losses applied and, as a result, override DT Max's application of losses available to the extent of the limited loss. DT Max will claim the lesser of the limit entered and the maximum allowable claim as calculated by DT Max and described below.
DT Max will otherwise optimize losses applied by claiming losses available in the following order:
1. Losses which are expiring this year:
i Restricted farm losses against farm income;
ii Listed personal property (LPP) losses against LPP gains;
iii Non capital losses;
iv Farm losses;
2. Losses which are expiring next year:
i Restricted farm losses against farm income;
ii Listed personal property losses (LPP) losses against LPP
gains;
iii Non capital losses;
iv Farm losses;
3. Remaining losses available which can be applied:
i Listed personal property losses (LPP) losses against LPP
gains;
ii Net capital losses against taxable capital gains;
iii Restricted farm losses against farm income;
4. Remaining losses claimed - oldest losses first:
i Non capital losses;
ii Farm losses;
iii Allowable business investment losses;
5. Limited partnership losses - limited by at-risk (AT-RISKAMT
keyword) amount of limited partner, if entered.
The following options are applicable for the keyword LossLim.
Capital property loss Enter the allowable amount of capital property losses. These losses can be carried forward indefinitely and carried back three years against taxable capital gains. For loss carryforwards, DT Max uses the prior year to determine the inclusion rate of the loss incurred. If the rate is different from the rate in the year of a capital gain, an adjustment is required to calculate the amount of the loss which can be applied in the current or a prior year. Loss carryforwards/carrybacks will appear on Schedule 4.
Listed personal property loss Listed personal property losses can be carried forward seven years and carried back three years. Loss carryforwards will appear on Schedule 4. Loss carrybacks must be requested separately.
Restricted farm loss Restricted farm losses can be carried forward ten tax years if it arose in a tax year ending before 2006, 20 tax years if it arose in a tax year ending after 2005 and carried back three years against farming income. Loss carryforwards and carrybacks will appear on Schedule 4. Such losses arise when farming is not the corporation's chief source of income. If farming is the chief source, choose the relevant farming corporation type in the Activity keyword.
Farm loss Farm losses can be carried forward ten tax years if it arose in a tax year ending before 2006, 20 tax years if it arose in a tax year ending after 2005 and carried back three years. Loss carryforwards and carrybacks will appear on Schedule 4.
Non capital loss Non capital losses can be carried forward ten tax years if it arose in a tax year ending after March 22, 2004, and before 2006, 20 tax years if it arose in a tax year ending after 2005 and carried back three years. Loss carryforwards and carrybacks will appear on Schedule 4.
Allowable business investment loss Allowable business investment losses can be carried forward indefinitely and carried back three years. Loss carryforwards will appear on Schedule 4. For losses that become net capital losses, use the keyword LossCF and the option "Capital property loss" to have the losses appear on Schedule 4.
Limited partnership loss Limited partnership losses can be carried forward indefinitely. Losses are deductible to the extent of the at-risk amount. Enter the current year limited partnership loss, loss carryforwards and the at-risk amount relating to each partnership of which the corporation is a limited partner in the LimPartLoss, Amount-CF and At-RiskAmt keywords in the LimPartLoss group. Loss carryforwards will appear on Schedule 4.
Use TaxReduced to apply losses against taxable income or part IV tax.
For non-capital and farm losses, part IV tax can be reduced by the amount of losses available. DT Max will automatically apply these losses against part IV tax; applying losses to reduce taxable income is preferred, as part IV tax is refundable when taxable dividends are paid.
The following options are applicable for the keyword TaxReduced.
Apply to taxable income Losses applied to reduce taxable income will be deducted on page 3 for prior year losses deducted or on Schedule 4 (T2A) for losses carried back.
Apply to part IV tax Losses applied to reduce part IV tax will be deducted from current year taxable dividends on the T2 return or on Schedule 4 (T2A) for losses carried back.
Use [Alt-J] to enter different values for other jurisdictions.
| 
Credit-AOC 