[LorraineG]

Doing capital gains on small shares profit and Profile automatically put in the same amount for the deduction. Do I accept it or is there another step?

[unknown]

Check all amounts carefully.

If this is not a long term client, obtain historical info from CRA.

[LorraineG]

I am not totally familiar with the deduction and do not want to assume. The program is assuming I should use the deduction. Should I use the short term deduction or wait for a long term use? If I get the CNIL for this client (family member) I still don't know if I should use the deduction. What will CRA tell me if I call?

[unknown]

Don't see what phoning CRA would help, except to obtain the hostorical info...

Things like capital gains and losses history, CNIL account...

What do you mean by short term deduction?

[LorraineG]

Tough learning a new program at tax time - basically all I need to know is if there are any capital losses to apply against the capital gains. Great program. Thanks all for the help. I'll be back.

[RL Tax Joe]

snowplowguy, on Mar 13 2008, 06:22 AM, said:

Well..... if you figure that's all you need to know then the client's 2006 NoA should show any unused capital losses in the "Explanation of changes and other important information" area.

Oh Brother :rolleyes:

[dunner]

Be careful about the capital gains deduction where you don't have alot of prior years' information. Capital losses that were claimed in prior years (even long time ago) can limit the ability to claim the capital gains deduction. It's not a bad idea to call CRA and have them send a "capital gains history" printout to the client. This will give you all the historical information you should need to ensure your client is entitled to the full CGE (this assumes of course that the gain itself qualifies).

[Joe]

LorraineG, on Mar 12 2008, 01:06 PM, said:

Doing capital gains on small shares profit and Profile automatically put in the same amount for the deduction. Do I accept it or is there another step?

"small shares profit and Profile automatically put in the same amount for the deduction"

You do not at all mention QSBC, even when asked by another respondent, so it appears that you are dealing with a small profit from share sales in preparing these returns for your family members.

If that is the case, not only have you reported it in the wrong place/wrong type, but you do not understand at all how Capital Gains tax works.

And then in the same breath you start talking about short-term and long- term?? and then about Capital Losses...


In the clients best interests, perhaps "Straight T4/T5" T1s would be much more appropriate for you at this stage.
Pass the others to a PDA...



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[Joe]

Joe, on Mar 13 2008, 07:06 AM, said:

"small shares profit"

I meant to also alternatively ask for more clarification in the light of the confusing info previously posted, but I had to rush to a meeting and didnt finish my post.

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