Business Investment loss
As a rule, you can deduct a business investment loss if you
incurred losses in the taxation year on investments (shares or debt
securities) in a Canadian-controlled Small Business Corporation
Shares (not listed on a stock exchange).
You can claim this loss on lines 21700 and 21699 of the
federal return, and for Quebec residents on lines 233 and 234
of the Quebec return.
The program will generate the federal ABIL
schedule, as well as form TP-232.1,
Calculation of ABIL, for Quebec.
For more information, consult the following sites:
For the CRA:
https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/lines-217-228-business-investment-loss.html
For Revenu Québec:
https://www.revenuquebec.ca/en/citizens/income-tax-return/completing-your-income-tax-return/completing-your-income-tax-return/line-by-line-help/201-to-260-net-income/line-234/
To report this loss, please follow these steps:
1. On the "Left-side menu on the Interview
tab", select "Interview setup".
2. On the right-hand side of the screen, go to
"Investment income and expenses" group, check the
box for "Capital gains (or losses) and capital gain
history".
3. Return to the "Left-side menu on the Interview
tab" and select "Capital gains (or losses) &
ABIL".
4. On the page generated on the right, click on
the plus sign "+" icon
to the right of the line "Current year allowable business
investment loss (ABIL)".
5. On the page that appears, provide the pertinent
information.
6. You must enter the "Date of disposition" and
"Proceeds of disposition".
7. If the amount is from debt securities go to line
"Amount of small business loan eligible for the ABIL
deduction" and in the field to your right, choose
one of the two options and enter the amount.
The program will calculate the loss and carry over the amounts
to the relevant lines of the returns.
ID: 20191217172116IB.xml
Webpage: KPA330-20191217172116IB.htm
