As a resident of Québec, you’ll need to complete the TP-729-V if you want to carry forward to this year:
- a net capital loss sustained in a previous year
- the unused portion of a business investment loss, as long as that portion has become a net capital loss and is being carried over as such for the first time
Note: Losses must be carried forward in the order in which they were sustained. This means, you must carry forward the oldest loss first.
Generally, a net capital loss can only be used to reduce the net taxable capital gain for the carry-forward year. However, you might be able to use losses from before May 23, 1985, to reduce income from other sources, to a maximum of $1,000. To do so, complete the Work chart 2 section on the TP-729-V page in H&R Block’s tax software.
Any balance that can be carried forward is calculated using the inclusion rate of ½. Net capital losses from a period when the rate was not ½ (such as 1988 to 2000), will be converted to this inclusion rate when you complete the TP-729-V page.
Where can I enter this?
Follow these steps in H&R Block's 2017 tax software:
Before you begin, make sure you told us that you lived in Québec on December 31, 2017.
- Under the PREPARE tab, click the OTHER icon.
- Under the SPECIFIC CREDITS FOR YOUR PROVINCE heading, select the checkbox labelled Carry-forward of net capital losses (TP-729-V), then click Continue.
- When you arrive at the Carry-forward – net capital losses page, enter your information into the tax software.