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Hi Team. Your site is a great resource for pointing out pitfalls and complexities!
My CCPC has small capital and non-capital losses for 2023 (about $1600 and $150) that I cannot use in 2023, nor in 2024 when I plan to dissolve the CCPC. Triggering a carry back to 2022 using Schedule 4 seems easy enough but my question is about what has to be done after that, assuming I get a tax refund...
- Do I have to amend previous returns to update my GIFI values?
- Which years?
- Which GIFI codes?
I'm concerned about getting this right so I can dissolve the corporation with balanced books. I see GIFI 3720 Prior Period Adjustments but have read one of your other answers that says this could trigger a tax audit.
The other possibility I see is that the expense and effort of amending return(s) for such a small amount may simply not be worth it.
Thanks for any advice!
Hi Norm,
No, you don't have the amend the previous year's tax return due to a loss-carry-back. Record the tax refund you receive in the current year as a reduction to the current corporate income tax expense.