T1a / T2 schedule 4 non capital loss carryback vs capital gains

Income tax policy, rules, problems, strategy and software. Property and consumption taxes too.
Post Reply
scorpionman
Silver Ring
Silver Ring
Posts: 271
Joined: 12 Jul 2010 19:24

T1a / T2 schedule 4 non capital loss carryback vs capital gains

Post by scorpionman » 07 Jan 2018 18:34

Does anyone know why there is a line 'taxable capital gains' to be added to income for the purposes of determining non-capital loss since it would seem by definition capital gains are not non-capital gains or losses?

(On a side note, on doing a T2 I notice the same behaviour. It appears that if you have a business loss but a capital gain, the capital gain is deducted from the operating loss to derive the non-capital loss that can be carried back or forward. The order of operations seems to be to deduct capital gains from non-capital operating losses. Just wanted to confirm if this is correct behaviour of the tax software and not a glitch)

Post Reply