According to legislative proposals released recently, capital losses incurred by an estate in the first 3 tax years as a graduated rate estate can now elect under Subsection 164(6) to carry back the capital losses to the terminal return of the deceased taxpayer. Previously, capital losses incurred only in the first tax year could be carried back under Subsection 164(6). Capital losses in the 2nd and 3rd years could not be carried back to the terminal return. This is beneficial to those estates where the deceased taxpayer has significant capital gains on the terminal return and subsequent capital losses in any of the first 3 graduated rate estate tax returns.
The above information is of a general nature only and should not be relied upon for specific situations. Call Marlies Y Hendricks, CPA at 416-766-3941 or submit email enquiry form below to set up a consultation.
