🚀 go-pugleaf

I'm not sure what you're saying, but I think this is what the rules
are:

1) Capital losses in 2002 applied to capital gains in 2002 have an
inclusion rate of 50%
2) Capital losses in 2002 applied to capital gains in 2001 have an
inclusion rate of 50%
3) Capital losses in 2002 applied to capital gains in 2000 have the
inclusion rate that is specified on your 2000 notice assesment (it
will be somewhere between 50% and 75%)
4) Capital losses in 2002 applied to capital gains in 1999 have an
inclusion rate of 75%

This is supported by the following text, taken directly from the 2002
T1A form - Request for Loss Carryback (area iii):

...To apply a 2002 net capital loss against taxable capital gains in
1999, 2000, or 2001, you have to adjust the amount of the net capital
loss to agree with the IR (inclusion rate) for the year to which you
apply the loss.

Basically if you had a $1000 net capital gain in January of 2000 you
paid tax on $750. If you also had a $1000 net capital loss in 2002 you
get to offset the complete $750 from 2000 since the inclusion rate in
January 2000 was 75%, regardless of the fact that the inclusion rate
in 2002 was only 50%.

-Peter.

On 27 Feb 2003 06:47:38 -0800, mgazer1@yahoo.com (Michael Gazer)
wrote:

>Just got off the phone with Canada Customs and here is some
>interesting news.. Although the inclusion rate for losses incurred in
>previous tax years may be greater than 50% (eg. 67%), you have to use
>the CAPITAL GAINS inclusion rate for the CURRENT tax year when
>calculating your losses... In other words, for tax year 2002, as the
>capital gains IR is 50%, the capital loss IR must be 50%...
>
>The net-net is that Quicktax 2002 is correct and you can still use the
>software to complete your return....
>
>MG
>mgazer1@NOSPAMyahoo.com
>
>"RoadRunner" <RoadRunner191@NOSPAMhotmail.com> wrote in message news:<Oux4a.3496$bK4.527889@ursa-nb00s0.nbnet.nb.ca>...
>> For those using Quicktax 2002 - be careful if you have any capital losses
>> that you wish to carry back to 2000.  Quicktax assumes your inclusion
>> rate(IR) is 50%.  This is most likely not the case.  Your inclusion rate can
>> be found in your 2000 Notice of Assessment.  However, if like me, your
>> inclusion rate is higher than 50%, then Quicktax will incorrectly adjust
>> your capital loss carryback.  If you manually override this, your return is
>> now ineligible for NetFile. As the ability to Netfile is an important
>> feature of the software, you can rest assured that I was not happy with this
>> finding.  On contacting Quicktax support - their response was "nothing we
>> can do".  So Quicktax users - beware, and don't blindly rely on the numbers
>> that Quicktax calculates for you.  And if like me - you are not happy - call
>> them and let them know.  I may just have to return the software for a
>> refund.