I am dual US-Canadian citizen living in Canada. I incurred CAN$11,141 in capital gains on investments in the US; 50% of this is taxable on my Canadian return, or CAN$5570.
I have over $50,000 in capital loss carryover from previous years, yet on the TurboTax Loss Worksheet, it shows $5750 as "2016 capital gains not reduced by prior year losses."
Can I not take losses from prior Canadian returns on US gains? I cannot find any information on this situation either in the forum or through Google.
Using capital loss carryover against US gains
Moderator: Mark T Serbinski CA CPA
There may be restrictions on how carried forward losses are claimed against TYPES of property, but not country of origin
In fact, unless your investments were in US real estate or resources, these aren't even considered "US gains", they are simply gains.
However, do realize that applying those previous losses to your Cdn return will simply mean that you will not get any credit on your US return for any Cdn tax against those gains, so will pay US tax on them.
How Ttax works you should take up with Intuit.
In fact, unless your investments were in US real estate or resources, these aren't even considered "US gains", they are simply gains.
However, do realize that applying those previous losses to your Cdn return will simply mean that you will not get any credit on your US return for any Cdn tax against those gains, so will pay US tax on them.
How Ttax works you should take up with Intuit.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
Like I said, that shouldn't matter. ask Ttax why they won't apply your carry-forward.
You should therefore still have US losses (from previous 1040's) to write against your gains reported on 1040, which is good. The result should be no cap gains in US or Canada.
But, just so you get the point: Just because you hold investments in US does not make them US-sourced gains, if you live in Canada. Only US real estate and resource investments are considered US-sourced for anyone living in Canada, including US citizens. You still have to report them on both returns, it just changes how foreign tax credits (if needed) are applied. With your carried losses, you don't have to worry about this right now.
You should therefore still have US losses (from previous 1040's) to write against your gains reported on 1040, which is good. The result should be no cap gains in US or Canada.
But, just so you get the point: Just because you hold investments in US does not make them US-sourced gains, if you live in Canada. Only US real estate and resource investments are considered US-sourced for anyone living in Canada, including US citizens. You still have to report them on both returns, it just changes how foreign tax credits (if needed) are applied. With your carried losses, you don't have to worry about this right now.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
Thanks, Nelson. Yes, I do have losses on the US side as well from the same source. The amount is smaller now because I have been using it in allowable annual amounts of $3000 to offset income, but there is still enough remaining to wipe out this gain.
Someone from TT told me that "You can not use Canadian capital losses to offset any type of foreign income include gains in the US," but I am far more inclined to believe you - you have a solid track record, they don't. Will have to beat up on them some more to see if they can justify that statement in any fashion.
Someone from TT told me that "You can not use Canadian capital losses to offset any type of foreign income include gains in the US," but I am far more inclined to believe you - you have a solid track record, they don't. Will have to beat up on them some more to see if they can justify that statement in any fashion.
Again, why are you classifying these gains as "US gains"? They are not, unless they are from US real estate or US oil or mining.
Lots of Cdns own stocks in US firms. They are not "US gains" -- even if held in a US brokerage. They aren't even eligible for foreign tax credit in Canada, so why are you singling these out on your return as "foreign".
Btw, as a Cdn resident, you are not allowed to have a an investment trading account with a US broker. This has nothing to do with taxes, but with Provincial securities rules.,
Lots of Cdns own stocks in US firms. They are not "US gains" -- even if held in a US brokerage. They aren't even eligible for foreign tax credit in Canada, so why are you singling these out on your return as "foreign".
Btw, as a Cdn resident, you are not allowed to have a an investment trading account with a US broker. This has nothing to do with taxes, but with Provincial securities rules.,
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
So, my guess is that you have not categorized/input these gains correctly.
No need to fight the intuit on an issue that doesn't evne involve you.
No need to fight the intuit on an issue that doesn't evne involve you.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
Now, where they may be confused is if they do not consider these as capital losses. For example, distributions from US mutual funds -- even if they are cap gains by IRS rules -- are not considered capital gains by CRA. they are ordinary income. So you would not be able to write off those "gains" by past capital losses.
But gains from selling such funds -- as well as any company stocks, bonds, etc -- is capitals gains. Fully eligible for write-off against past losses.
But gains from selling such funds -- as well as any company stocks, bonds, etc -- is capitals gains. Fully eligible for write-off against past losses.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
Right, I should stop calling them that, I'm only confusing myself.
TurboTax has some so-called "T slips" for foreign income, and I was entering the cap gains there. That's probably where I'm going wrong. Sounds like I should just be treating them as capital gains. Period.
And yes, I should not have had that account, but I did not know that until this past year. The entire account now resides in Canada.
TurboTax has some so-called "T slips" for foreign income, and I was entering the cap gains there. That's probably where I'm going wrong. Sounds like I should just be treating them as capital gains. Period.
And yes, I should not have had that account, but I did not know that until this past year. The entire account now resides in Canada.