Carrybacks (T1A)

Carry-Back

The following options are applicable for the keyword Carry-Back.

• Restricted farming losses

For those who have a restricted farm loss in the current year but had farm income in at least one of the previous 3 years. DT Max will not verify whether or not there was farm income in those years, but will accept whatever amount is entered by the tax preparer.

• Farming losses

For farmer taxpayers who have a farm loss in the current year but had farm income in at least one of the previous 3 years. DT Max will not verify whether or not there were farm income in those years, but will accept whatever amount is entered by the tax preparer.

• Fishing losses

For taxpayers who have a fishing loss in the current year but had fishing income in at least one of the previous 3 years. DT Max will not verify whether or not there were fishing income in those years, but will accept whatever amount is entered by the tax preparer.

• Non capital losses

For those who have non capital losses (or shelter losses or ABIL losses) in the current year, but had taxable income in at least one of the previous 3 years. DT Max will not verify whether or not there was income in those years, but will accept whatever amount is entered by the tax preparer.

• Capital losses related to precious property

For those who have a Precious ( Listed Personal Property) in the current year but had Precious (Listed Person Property) gains in at least one of the previous 3 years. DT Max will not verify whether or not there were Precious (Listed Person Property) gains in those years, but will accept whatever amount is entered by the tax preparer.

• Net capital losses

For those who have net capital losses in the current year but net capital gains in at least one of the previous 3 years. DT Max will not verify whether or not there were net capital gains in those years, but will accept whatever amount is entered by the tax preparer. The amount to carry forward is the taxable amount at the current inclusion rate (50%). For allowable carry backs to previous years where the inclusion rate was different, DT Max will adjust for the change in the inclusion rate (which adjustment appears on the T1A).

• T1B - Federal COVID-19 benefits repayment
• Deceased - Net capital losses in the year of death

You may be able to use the total or some of the remaining amount of the net capital losses to reduce other income on the final return, the return for the year before the year of death, or both returns.

However, in order to know the amount that you can use to reduce other income amounts, you must subtract all capital gains deductions claimed to date by the deceased person from the balance of net capital losses, including those on the final return.

Use this option to enter either the total amount or a portion of the amount remaining from the net capital losses to reduce other income in the year before the year of death. DT Max will report the amount on line 31 of schedule Capital losses - Final return of the deceased person.

If you claim any remaining net capital loss in the year before the year of death, you will need to complete Form T1-ADJ, T1 Adjustment Request, or send us a signed letter providing the details of your request. Send your Form T1-ADJ or letter separately from the deceased's final return. Applying a 2023 net capital loss to a previous year may reduce any capital gains deductions the deceased claimed in that year or a following year.

• Deceased - Net capital losses of other years

The deceased may have had a net capital loss before the year of death but never applied it. If so, you can apply the loss against taxable capital gains on the final return.

From the balance of net capital losses, subtract all capital gains deductions claimed to date, including those on the final return. If there is an amount left, you can use it to reduce other income for the year of death, the year before the year of death, or for both years.

Use this option to enter the total or some of the remaining amount from the net capital losses to reduce other income in the year before the year of death.

DT Max will report the amount on line 19 of schedule Capital losses - Final return of the deceased person.

If you claim any remaining net capital loss in the year before the year of death, you will need to complete Form T1-ADJ, T1 Adjustment Request, or send us a signed letter providing the details of your request. Send your Form T1-ADJ or letter separately from the deceased's final return. Applying a 2023 net capital loss to a previous year may reduce any capital gains deductions the deceased claimed in that year or a following year.

• Deceased - Adjustment of investment expenses to prior year
• TP-1012.B - Expenses related to a research grant

For those who have expenses incurred in 2023 related to a research grant that was included in income for the previous year (paragraph (h) of section 312). These expenses reduce the net amount of the research grant reported for the previous taxation year (the adjustment will appear on the TP-1012.B).

DT Max will not verify whether or not there were expenses in those years, but will accept whatever amount is entered by the tax preparer.

• TP-1012.B - Donations and gifts made/deemed before death

For those who have donations or gifts, or gifts by way of a will, each of which constitutes a single payment, made in the year of death, that is 2023. These donations or gifts are deemed to have been made in the year preceding the year of death, provided they were not deducted in the return for the year of death. The amount you enter for the taxation year preceding the year of death must not exceed the limits set forth in the Taxation Act (the adjustment will appear on the TP-1012.B).

DT Max will not verify whether or not the donations were deducted in those years, but will accept whatever amount is entered by the tax preparer.

• TP-1012.B - Donations and gifts made by will or designation
• TP-1012.B - Adjustment of investment expenses

For those who have adjustments of investment expenses and other investment expenses, calculated on schedule N of the income tax return for 2023. These adjustments can be carried back three years, up to a maximum of the amount by which investment income exceeds the investment expenses deducted for the year of the carryback (the adjustment will appear on the TP-1012.B).

• TP-1012.B - Unused portion of the foreign tax credit

For those who have an unused portion determined for 2023 respecting business income attributable to an establishment located outside Canada (section 772.2). The unused portion of the foreign tax credit may be carried back three years for the purpose of calculating the credit provided for under section 772.8 (the adjustment will appear on the TP-1012.B).

• TP-1012.B - Foreign tax credit for former residents

For those who have a tax credit is granted to an individual who is no longer resident in Canada and who, at the time of the disposition of a property, paid income tax in the country in which the individual is resident and with which Canada or Québec has a tax agreement (the adjustment will appear on the TP-1012.B). It is also granted where the disposed property is immovable property located in a foreign country that levies income tax on the property (even if Canada or Québec does not have a tax agreement with the country). The amount of the tax credit must be calculated for each property and must not exceed the lower of the following two amounts:

• the total amount of foreign income tax paid on the disposition of the property in respect of the portion of the gain or profit accrued before the individual emigrated from Canada, minus the amount of the credit granted by the Canada Revenue Agency
• the amount of the individual’s income tax for the emigration year that is attributable to the deemed disposition of the property

• TP-1012.B - Ded. for loss in value of RRSP/RRIF/PRPP/VRSP

For those who have a decline in the fair market value (FMV) of an unmatured RRSP or a RRIF between the date of death and the date of payment to the heirs or to the succession (estate) (the adjustment will appear on the TP-1012.B).

The difference between the FMV of the RRSP or the RRIF included in the deceased annuitant's income and the total of all payments is claimed as a deduction in the final return of the deceased person for the year of death, that is, 2023.

Enclose a copy of the form RC249, Post-death decline in the value of an unmatured RRSP or a RRIF - Final distribution made in 2023, given to you by the RRSP issuer or RRIF carrier.

• TP-1012.B - Repayment of salary or wages
• TP-1012.B - Repayment of certain government benefits
• TP-1012.B - Capital loss and terminal losses of estate

For those who have losses sustained by the estate for the first taxation year, that is 2023. Under section 1054, these losses may be claimed on behalf of the deceased person for the year of death, that is 2023. In this case, the losses are deemed not to be losses of the estate (the adjustment will appear on the TP-1012.B).

• TP-1012.B - Contributions made to an RPP prior 1990

For those who have contributions made to a registered pension plan (RPP) for services rendered prior to 1990. These contributions are not limited by the $5,500 ceiling for the year of death and the previous year. Amount carried back to the previous year, not deducted in the return for the year of death (the adjustment will appear on the TP-1012.B).

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Line 23210 - Federal COVID-19 benefits repayment

Amount.cb   

Amount.cbl   

The following options are applicable for the keyword Amount.cbl.

• Net capital loss of the estate
• Terminal loss of the estate

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Line 23210 - Federal COVID-19 benefits repayment

Amounts.cb   

The following options are applicable for the keyword Amounts.cb.

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Line 23210 - Federal COVID-19 benefits repayment

Adjust-CNIL   

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Amounts.cbf

The following options are applicable for the keyword Amounts.cbf.

• Foreign tax paid caused by disposal of a property
• Tax of the individual related to the disposal of a property

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Line 23210 - Federal COVID-19 benefits repayment

Year.cb

The following options are applicable for the keyword Year.cb.

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Year-Death

The following options are applicable for the keyword Year-Death.

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Amount.de   

The following options are applicable for the keyword Amount.de.

Amount.cov

The following options are applicable for the keyword Amount.cov.

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AlreadyDeduct.cov

The following options are applicable for the keyword AlreadyDeduct.cov.

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