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Email this1:08 pm
May 28, 2013
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I ran the 'validate' button on my StudioTax program and got this message:
"This return contains capital gains and cannot be filed until the CRA system is ready to accept returns with capital gains. Additionally, once the CRA system is upgraded, tax software, including StudioTax, will need to be certified to file this type of return."
So does that mean that Netfile is not yet set up to take any submissions (from any software) if they report a capital gain?? When is that going to happen? This could delay a lot of tax returns!
More on this at https://www.bnnbloomberg.ca/investing/personal-finance/2025/03/05/hoping-to-file-your-2024-taxes-early-you-might-have-trouble-online/
I use StudioTax on an iMac, version 12.3.2
1:32 pm
December 7, 2023
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rhvic said
I ran the 'validate' button on my StudioTax program and got this message:"This return contains capital gains and cannot be filed until the CRA system is ready to accept returns with capital gains. Additionally, once the CRA system is upgraded, tax software, including StudioTax, will need to be certified to file this type of return."
So does that mean that Netfile is not yet set up to take any submissions (from any software) if they report a capital gain?? When is that going to happen? This could delay a lot of tax returns!
More on this at https://www.bnnbloomberg.ca/investing/personal-finance/2025/03/05/hoping-to-file-your-2024-taxes-early-you-might-have-trouble-online/
I use StudioTax on an iMac, version 12.3.2
That was because the Federal government before increased tax rate of capital gain for net income over $250,000, the government will not increase the tax rate for now.
You have to wait, all of the tax software will be re-certified because of this change. They may finish re-certify at end of march.
1:47 pm
April 6, 2013
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Any late filing penalties will be waived by CRA until June 2 for those with capital gains reported in their 2024 tax return.
1:49 pm
May 28, 2013
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Norman1 said
Any late filing penalties will be waived by CRA until June 2 for those with capital gains reported in their 2024 tax return.
Norman, does that count for my spouse's taxes as well? She has no capital gains but I do, and of course our returns are linked.
2:07 pm
April 6, 2013
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I haven't seen anything to suggest that penalties will be waived for returns of spouses who don't have any capital gains to report and can file now.
I think the answer is no.
Wording in CRA's January 31 update suggest relief for only those reporting capital dispositions (not necessarily capital gains) in their return:
The CRA will grant relief in respect of late-filing penalties and arrears interest until June 2, 2025, for impacted T1 Individual filers and until May 1, 2025, for impacted T3 Trust filers to provide additional time for taxpayers reporting capital dispositions to meet their tax filing obligations.
Also, it is relief and not an extension. Should one miss the June 2 date and file June 3, one will be considered 34 days late and not one day late as far as penalties and interest!
3:04 pm
March 17, 2018
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Some companies have now gotten their tax software including for those with capital gains certified for Netfile.
Taxfreeway, Eachtax, WebTaxForyou, FutureTax, BetterTax
You can now file 2024 tax returns with capital gains
byu/bettertaxco inPersonalFinanceCanada
12:34 pm
January 10, 2017
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Norman1 said Should one miss the June 2 date and file June 3, one will be considered 34 days late and not one day late as far as penalties and interest!
That would not be fair given individuals had less time to file their returns. Where did you hear this or are you interpreting something you read?
2:58 pm
May 28, 2013
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StudioTax has this note on their site:
"March 10, 2025
The software is currently being tested by the CRA for the capital gains components. A software update will be published as soon as this testing phase is completed. Unfortunately, we cannot provide a time estimate as it is beyond our control."
Hopefully, they will have their working update soon.
Although I have capital gains and my spouse does not, I hope to submit both tax files at the same time, as her tax form includes pension income splitting from my side. I do not know if CRA can process her tax form without having mine as well.
4:05 pm
April 6, 2013
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rhvic said
…
Although I have capital gains and my spouse does not, I hope to submit both tax files at the same time, as her tax form includes pension income splitting from my side. I do not know if CRA can process her tax form without having mine as well.
Don't see a reason why CRA cannot process her tax return before having your return. Each return has to have a matching copy of the T1032 form (Joint Election to Split Pension Income):
Filing instructions
If you are filing electronically, keep this in case the Canada Revenue Agency (CRA) asks to see it later. If you are filing a paper return, you must complete, sign, and attach copies of this form to both your return and your spouse's or common-law partner's return. The information on the forms must be the same.
…
4:17 pm
April 6, 2013
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Lodown said
That would not be fair given individuals had less time to file their returns. Where did you hear this or are you interpreting something you read?
CRA clearly said so on February 19 about the reliefs:
Penalties after the expiration of the relief period
Although the CRA is providing relief from the application of the late filing penalty in the instances described above, a return will be considered late the day following the end of the relief period and will incur a late filing penalty based on its original due date. For example, if the relief period ends on March 7, 2025, for a return due by February 28, 2025, and a return is filed on March 8, 2025, the return will be considered to be 8 days late.
They are all reliefs and not extensions, including the one for certain T1 returns.
5:47 am
March 30, 2017
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Lodown said
That would not be fair given individuals had less time to file their returns. Where did you hear this or are you interpreting something you read?
the amount of time to file the return is the same. issuers deadlines are extended about 1 month for T3s, and filers are given the same and extend to Jun 2.
So as long as one is filed by Jun 2, there will be no late filing penalty. And if one still fail to file by Jun3, then penalty accumulates from Apr30, I don't see any issue with that arrangement.
7:12 am
January 10, 2017
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Norman1 said
CRA clearly said so on February 19 about the reliefs:
Penalties after the expiration of the relief period
Although the CRA is providing relief from the application of the late filing penalty in the instances described above, a return will be considered late the day following the end of the relief period and will incur a late filing penalty based on its original due date. For example, if the relief period ends on March 7, 2025, for a return due by February 28, 2025, and a return is filed on March 8, 2025, the return will be considered to be 8 days late.
They are all reliefs and not extensions, including the one for certain T1 returns.
In the above CRA February 2025 link, the text refers to "instances described above", where only T3 Returns are discussed. T1 Returns are not mentioned.
The applicable text follows:
T3 information returns
The CRA announced that it will grant relief in respect of late-filing penalties and arrears interest until May 1, 2025, for impacted T3 Trust filers to provide additional time for taxpayers reporting capital dispositions to meet their tax filing obligations. This relief applies to both the filing of T3 information returns (slips) and the T3 income tax return.
Penalties after the expiration of the relief period
Although the CRA is providing relief from the application of the late filing penalty in the instances described above, a return will be considered late the day following the end of the relief period and will incur a late filing penalty based on its original due date. For example, if the relief period ends on March 7, 2025, for a return due by February 28, 2025, and a return is filed on March 8, 2025, the return will be considered to be 8 days late.
Extending this provision to "impacted" T1 Return filings made after June 2, 2025 is an interpretation of what CRA stated for T3 Tax Return filings. IMO, CRA needs to clarify their position w.r.t. impacted T1 Tax Returns.
4:11 pm
October 27, 2013
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What CPA has said is good enough for me https://www.cpacanada.ca/news/accounting/tax/tax-relief
5:42 pm
August 30, 2023
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Norman1: Wording in CRA's January 31 update suggest relief for only those reporting capital dispositions (not necessarily capital gains) in their return:
What is the difference between capital dispositions and capital gains.
So it does NOT apply to capital gains on stock sales (T5008)?
But I am still unable to file my taxes with T5008 right now correct? unless the software is updated.
6:50 pm
April 6, 2013
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Capital dispositions are transactions that need to be reported in the T1 Schedule 3, Part 3.
Doesn't need to be a gain. A disposition could end up being a loss instead of a gain.
6:58 pm
June 22, 2023
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zgic
Hopefully, this clarifies your confusion created from the CRA's poor wordsmithing.
https://www.wolterskluwer.com/en-ca/expert-insights/tax-preparers-brace-for-a-stressful-tax-season
7:08 pm
April 6, 2013
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Lodown said
…
Extending this provision to "impacted" T1 Return filings made after June 2, 2025 is an interpretation of what CRA stated for T3 Tax Return filings. IMO, CRA needs to clarify their position w.r.t. impacted T1 Tax Returns.
Not really. The T3 example is an explanation of how reliefs work. Doesn't need to be clarified any further.
As I wrote previously, none of the due dates have changed. If one does not file by the due date, then one is late and penalties apply. CRA has offered relief from those penalties provided one does file by the specified date after the due date. After that, the usual penalties, calculated from the unchanged due date, apply.
There's also no relief where none was announced. For example, no relief was announced for the T1135 (Foreign Income Verification Statement) filed after the usual April 30 or June 15 due date. The T1135 actually not part of the T1 return and may need to be filed even when a T1 return does not need to be filed:
What's new - Changes to Form T1135
Form T1135 must be filed on or before the due date of your income tax return or, in the case of a partnership, the due date of the partnership information return, even if the income tax return (or the partnership information return) is not required to be filed.
There are substantial penalties for failing to complete and file Form T1135 accurately and by the due date. For more information regarding penalties, see the Table of penalties.
8:30 pm
December 7, 2023
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@Norman1
I do not have much knowledge of investment. I do not understand what CRA website says and what you said.
Can you please confirm if the below is correct or not?
I sold stocks and I had Capital gain / loss in 2024, I ( Individuals ) report a capital gain or loss on line 12700 of the 2024 T1 tax return now have until June 2, 2025 to file 2024 return without incurring interest or late-filing penalties.
a)
If the return is filed on June 2, 2025, the CRA will grant relief in respect of late-filing penalties and interest.
b)
If the return is filed on June 3, 2025, the return will be considered to be 34 days late, CRA will charge me interest for the balance owing ( line 167 or line 48500 of T1 return) for 34 days.
8:45 pm
June 22, 2023
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usephrase
My best advice to you is to file on time if you have all the information you need. Don't trust the CRA, given their very poor communications. It is not even clear in their communications that if you file on time, and have a capital gain, whether interest would be charged from April 30 until June 2nd. It is mind bogginly pathetic to think that (with their immense human resources) that they cannot communicate to joe taxpayer the reality that joe taxpayer exists in.
8:47 pm
October 27, 2013
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I believe the qualification is any* data entry on Schedule 3 is is an 'impacted' T1 return. It does not necessarily mean anything on line 12700 if line 19900 is zero or negative. That said, both a) and b) is correct.
From CRA itself
Enter your taxable capital gains (positive amount) from line 19900 of your Schedule 3 on line 12700 of your return. If the amount on line 19900 is negative (net capital loss), do not report it on line 12700 of your 2024 return. Your net capital loss, if any, will appear on your 2024 notice of assessment or reassessment. You can use it to reduce your taxable capital gain in any of the three preceding years or any future year.
* Could be a stock or bond cap gain/loss, or a principal residence sale, or currency forex gain/loss.
Added later: I agree with Norman1 that there is no assumed relief on the T1135 (no reason for relief) and there is no relief for a T1 return that has no entries on Schedule 3.
I also agree to file by April 30th if one has all there information by then. There is no reason to delay filing if one does not have to do so.
Please write your comments in the forum.