Netfile/capital gains problem?? | Page 3 | Income tax filing | Discussion forum

Warwick111 said
For those who are anxious about their T3 slips, TDDI has just posted mine today on my TDDI account.  

Yes TDDI has always received top marks as an online brokerage.
There are no T3s posted yet on iTrade but, hey, it is only March 19 today so they have time before the Monday March 31 deadline.

My past experience with both BMOIL and Scotia iTrade T3 tax slips is early the last week of March. This year could be different should cetain issuers use the CRA extensions granted to them.

Indeed. Banner at the top of https://community.ufile.ca/

interesting looks like most t3 will be issued before the mar31 deadline. but the jun2 file date without penalty still applies !!

canadian.100 said

If my T3s show up by March 31 and I have a tax refund, I will file my T1 immediately, but if I owe money to CRA, then I will file my return June 2. Just like Mr. Carney says, "I follow the rules"!  

Just remember the penalty free extension to June 2nd only applies to 'impacted T1 returns', i.e. only those that have data inputs to Schedule 3. It does not apply to all T1 returns.

AltaRed said

Just remember the penalty free extension to June 2nd only applies to 'impacted T1 returns', i.e. only those that have data inputs to Schedule 3. It does not apply to all T1 returns.  

@AltaRed: What if I have an impacted an impacted T1 and my wife doesn't. I have currently compiled our combined returns on Wealthsimple and not yet filed. I don't think I can just submit hers separately as it is optimized as a combined return. The NETFILE access code only shows under my return.
So how do I go about it? Can I wait till June 2nd for both and there would be no penalty?
Your inputs or from any other members here would be really appreciated thanks.

Every taxpayer has their own Netfile Access Code* from their 2023 CRA NOA and each taxpayer netfiles separately since our tax code is individually based. While you will want to prepare both T1 returns together to optimize the benefits, they are not combined returns and there is no requirement to netfile at the same time. Only certain benefits are subject to optimization anyway, such as certain deductions, tax credits and pension income splitting and those are already know by Feb 28th.

Guidance from accounting firms suggests a 'non-impacted' T1 return must be filed by April 30th to avoid penalties while 'impacted' T1 returns have a grace period to June 2nd. It is what I will do IF I cannot netfile my impacted T1 return by April 30th, i.e. netfile my spouse's return and hold mine back.

* A Netfile Access Code is supposedly not even necessary to actually netfile a T1 tax return. https://www.canada.ca/en/revenue-agency/services/e-services/digital-services-individuals/netfile-overview.html

In April 7 Globe & Mail article CRA’s filing extension for capital gains…, a CRA spokesperson replied that the answer is no, the relief is not extended to other related taxpayers:

In response to a question from The Globe and Mail about whether the 2024 T1 filing relief would be extended to a spouse not reporting a 2024 capital gain or loss, CRA spokesperson Charles Drouin said, “Individuals without a capital disposition reported on Schedule 3 [the form for reporting capital gains and losses] will not qualify for the relief from late-filing penalties and interest. The relief that has been announced does not extend to other taxpayers.”

Mr. Drouin added that “unique situations can be considered on a case-by-case basis if relief is warranted.”
…

Short answer is Yes. However, as previously stated, that only applies to an 'impacted T1 return' that has an entry on Schedule 3. That could be a capital loss as well.

That all said, I will not be taking advantage of that 'relief' I have now completed my return and will Netfile it along with my T1135 (which is due by Apr 30th anyway) and that of my spouse who does not have an 'impacted' tax return. I don't see the point of saving a few dollars in interest by paying my tax bill by Apr 30th rather than taking advantage of the 'relief' to June 2nd.

That would be the relief on the arrears interest mentioned in CRA's January 31 update:

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.