Question: Is it possible to split the losses with my spouse? For the year 2007,as seniors, we split our income for the first time. I now have late T2124 losses to submit to RCA for 2007.
Unfortunately, gains and losses cannot be split with a spouse. If you transfer or lend property to your spouse (directly or indirectly), the transfer is deemed to have occurred at its original adjusted cost base and upon subsequent sale to a third party would be realized in your hands.
In terms of business losses, they are considered non-capital losses and must first be applied to other income earned in the current year.
Any excess can then be applied back three years or carried forward twenty years. These types of losses can be applied against any income.
By way of mention, form T2124 is an old version of the Statement of Business Activities which is now called T2125 – Statement of Business or Professional Activities. I wasn’t entirely sure of the reference to the form.
Related Articles
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- The Income Splitting Rules
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{ 2 comments… read them below or add one }
I’m looking for T2124 but I can’t find it in goggle.
Please inform where to find and get.
Go to http://www.cra.gc.ca and search for T2125 (not T2124).