This is time-sensitive. You may need to act quickly.
Suppose you had a capital loss in 2023, and you carried it back. Now in 2024, you have capital gains taxed at the 2/3 inclusion rate. That will cost you an additional 8% to 9%.
It follows that the loss carryback may be worth more as a carryforward.
What do you now do about this unfortunate choice? The decision may have been made even before there was a hint that the axe would fall on capital gains.
Here’s an idea to evaluate. Alter the claim by filing an adjustment request. Keep an eye on the 90-day period from reassessment. That is the time window to file a Notice of Objection.
Even though you made a deliberate choice to carry back the 2023 capital loss, it may not be too late to change your mind.
We do not guarantee that CRA will agree to process an adjustment. However, their stated policy is that they will, if the year is open for objection. Failing this, there is a high chance of being successful with a Notice of Objection filing. Hence our comment that this is time-sensitive.
Keep in mind other issues that could arise, such as AMT for an individual under the new rules for 2024.
We explore a wide range of tax planning ideas for capital gains in Session 1 of our Tax Seminar Series. The new AMT rules are covered in Session 2.
Each year, we put on a Tax Seminar Series with important updates and tax planning ideas. It has been attended by thousands of CPAs over the years. Most repeat year after year.
Find out how you can register and learn new tax planning ideas like those above for capital gains.