Business and financial newsgroups
CNIL (cumulative net investment loss)by RETIREE on 2004-04-22 19:36:33 I have been using Quicktax for a number of years and have stuck with mainlybecause of the way it transfers data from one year to the next. This year, I noticed something called CNIL that I don't recall seeing before. This is probably because up until now, I have used the basic version, but this year I have the Custom Edition - Investor version. Question - The CNIL appears to require investment income since 1998 to be accumulated. Is this something that I should actually do? It appears to be required to calculate allowable capital gains credits, none of which I can see ever applying to me. CNIL (cumulative net investment loss)by A SOLE PRACTITIONER on 2004-04-23 11:40:26 Basically very complicated. Does not affect most taxpayers directly.In my tax practice for a quarter century I have never encountered anyone that's run afoul of this rule. It's to keep track of investment losses and investment income to ensure that you can't deduct too many losses. On Thu, 22 Apr 2004 19:36:33 -0400, "Retiree" wrote: >I have been using Quicktax for a number of years and have stuck with mainly >because of the way it transfers data from one year to the next. >This year, I noticed something called CNIL that I don't recall seeing >before. This is probably because up until now, I have used the basic >version, but this year I have the Custom Edition - Investor version. >Question - The CNIL appears to require investment income since 1998 to be >accumulated. >Is this something that I should actually do? >It appears to be required to calculate allowable capital gains credits, none >of which I can see ever applying to me. > > CNIL (cumulative net investment loss)by ALAN BOWLER on 2004-04-23 13:14:24 Retiree wrote:> I have been using Quicktax for a number of years and have stuck with mainly > because of the way it transfers data from one year to the next. > > This year, I noticed something called CNIL that I don't recall seeing > before. This is probably because up until now, I have used the basic > version, but this year I have the Custom Edition - Investor version. > > Question - The CNIL appears to require investment income since 1998 to be > accumulated. > > Is this something that I should actually do? > > It appears to be required to calculate allowable capital gains credits, none > of which I can see ever applying to me. It is required if you are going to make use of the $500k lifetime capital gains exemption. This only applies to investments in small businesses (including farms). It mattered more prior when there was a $100k exemption on any capital gains, but that went away in the 1994 budget. If you don't see yourself likely to own part of a small business, don't worry about it. If that changes, you can calculate it by looking back at your previous returns. Note, make sure to print off a paper copy each year even if you e-file.
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