TP-726.6-V: Cumulative Net Investment Loss

If you're a resident of Québec who had investment income or deducted investment expenses after 1987, and you want to figure out your cumulative net investment loss (CNIL), you’ll need to use form TP-726.6-V.

Your CNIL consists of the investment expenses you’ve deducted minus the investment income you’ve earned after 1987.

Keep in mind, your CNIL reduces your cumulative gains limit, which in turn reduces the amount you can claim for capital gains deduction for qualified farm or fishing property, or qualified small business corporation shares. Even if you’re not claiming a capital gains deduction this year, we recommend completing this form so that you can calculate your CNIL and use this amount in the future.

Note: If you have already calculated your CNIL in 2022, you’ll need to only provide information for 2023. Otherwise, you’ll need to provide information for all applicable years.

Your investment expenses can include:

  • Carrying charges and interest expenses
  • Resource deductions
  • Other investment expenses paid to earn property income such as:
    • repayments of inducements
    • repayments of interest received
    • the uncollectible portion of the proceeds of disposition of depreciable property (except class 10.1 automobiles)
    • a loss resulting from the disposition of a debt obligation secured by a hypothec on land or of an agreement to sell land, if the principal amount of the obligation or agreement was included, for a previous year, in the proceeds of disposition of depreciable property
    • a deduction for foreign income tax on property income (sections 146 and 146.1 of the Taxation Act)
    • life insurance premiums deducted from property income
    • a deduction for the repayment of a policy loan made under a life insurance policy (paragraph (i) of section 336 of the Act)
    • an amount deducted further to the disposition of a debt obligation (section 157.6 of the Act)

Don’t include expenses you paid to earn business income or interest paid on money borrowed to contribute to your registered retirement savings plan (RRSP), registered pension plan (RPP), pooled registered pension plan/voluntary retirement savings plan (PRPP/VRSP), registered education savings plan (RESP), registered disability savings plan (RDSP), or a tax-free savings account (TFSA) on this form.

Your investment income includes:

  • Investment income (taxable amount of eligible and other than eligible dividends from taxable Canadian corporations or income shown in box E of the RL-3 slip, which might include income from the disposition of an interest in a life insurance policy (including a policy loan made under a life insurance policy)
  • Recovery of resource deductions
  • Rental property income
  • Other property income, such as:
    • income under a life insurance policy (box J of the RL-3 slip)
    • the portion of an ordinary annuity that is income (box B of the RL-2 slip)
    • insurance proceeds with respect to depreciable property on which capital cost allowance is being recaptured (except amounts already included on line 14)
    • inducements and reimbursements received as home insulation or energy conservation grants

Don’t include amounts on this form that relate to your business income, payments received from an income-averaging annuity contract or an annuity contract bought under a deferred profit-sharing plan (DPSP), or a shareholder’s loans that were included in the calculation of his or her income.

Follow these steps in H&R Block’s 2023 tax software:

Before you begin, make sure you told us that you lived in Québec on December 31, 2023.

  1. On the left navigation menu, under the Credits & deductions tab, click Tax Topics.

  2. Select the Investment income & expenses checkbox.

  3. At the bottom of the page, click Add selected topics to my return.

  1. Under the INVESTMENT INCOME heading, select the checkbox labelled Cumulative net investment loss (TP-726.6-V), then click Continue.

  2. When you arrive at the page for your Cumulative net investment loss, enter your information into the tax software.