The T936 form is used to calculate your cumulative net investment loss (CNIL) for the investment income or investment expenses you had this year. Your CNIL is how much more your investment expenses were when compared to your investment income and is used in the calculation of the capital gains deduction that you can claim on the sale of qualified capital property.
Your CNIL reduces your cumulative gain limit and it might affect the amount of capital gains deduction you’ll be allowed for the year. Even if you’re not claiming a capital gains deduction, you’ll need to complete this form if you had investment income or investment expenses.
Remember: Since the CNIL is a cumulative total, make sure keep a record of your completed T936 in case you need to reference it in the future.
What is investment income?
Your investment income includes:
- All income from capital property including rental income, interest income, and dividends
- Insurance proceeds for the recapture of capital cost allowance
- Home insulation or energy conversion grants
- Payments given as an inducement or reimbursement
- CPP or QPP death benefit payments reported on your T1
- Allowable capital losses included in partnership losses of other years after 1985
- Farming and fishing income reported by a non-active or a limited partner
- 50% of income from the recovery of exploration and development expenses
- Other income from a trust
- Income from the appropriation of property to a shareholder
- Amounts withdrawn from AgriInvest Fund 2
Note: Don’t include amounts that relate to your business income on this form. See the T936 form for more information on the investment income that can't be included on this form.
What are investment expenses?
Your investment expenses include:
- Carrying charges and interest expenses
- Foreign non-business tax under subsections 20(11) and 20(12)
- Losses from rental, limited or non-active partnership other than allowable capital losses, farming or fishing losses claimed by a non-active partner or a limited partner, and limited partnership losses of other years after 1985
- 50% of exploration and development expenses
- Repayments of inducements or refund interest
- The uncollectible part of proceeds from sale of depreciable property (except passenger vehicles that cost more than $30,000)
- Life insurance premiums deducted from property income
- Capital cost allowance claimed on certified films and videotapes
- Sale of agreement for sale or mortgage included in proceeds of disposition in a previous year under subsection 20(5)
Note: Don’t include expenses you paid to earn business income on this form. See the T936 form for more information on the investment expenses that can't be included on this form.
Where do I claim this?
- Under the PREPARE tab, click the LET'S TALK ABOUT 2016 icon.
- Select the option labelled the I had investments and/or investment income, or I bought and/or sold property.
- Click the PENSION PLANS AND INVESTMENTS icon. You'll find yourself here:
- Under the INVESTMENT INCOME heading, select the checkbox labelled Calculation of cumulative net investment loss to December 31, 2016 (T936).
- When you arrive at the T936 page, enter your information in the tax software.
Where can I learn more?
- T4037: Capital Gains (CRA website)