[opie]

It seems that where and entity had differing capital and non-capital losses prior to 2009, the Ontario losses if more than Federal are essentially lost (harmonized loss carried forward is the Federal one). Am I correct here?

Also, what happens where I have a loss in fiscal 2009 that I want to carry back to prior years but I want to apply a different amount to Ontario taxable income (in a year with no harmonization). I don't see how to do this in Profile when preparing a 2009 T2. Maybe you simply cannot.

Can anyone help?

[Lee@Intuit]

opie, on Dec 14 2009, 09:51 PM, said:

It seems that where and entity had differing capital and non-capital losses prior to 2009, the Ontario losses if more than Federal are essentially lost (harmonized loss carried forward is the Federal one). Am I correct here?

Also, what happens where I have a loss in fiscal 2009 that I want to carry back to prior years but I want to apply a different amount to Ontario taxable income (in a year with no harmonization). I don't see how to do this in Profile when preparing a 2009 T2. Maybe you simply cannot.

Can anyone help?

Hi opie,

For your first question, my understanding is that in the year of transition you will calculate a credit based on (among other things) the amount that your Ontario losses carried-forward exceed your Federal losses. This is done on S506. From that point on, the harmonized loss balance will be the only balance used. So, you don't necessarily 'lose' anything, the value of the difference is replaced with the transitional tax credit, the relative value of which is a reasonable hand-drawn facsimile.

Your second question is a very good one. I will check with some of our contacts and see what I can find out. I will report here if/when I get an answer.

-Lee