Schedule N: Adjustment of Investment Expenses

Schedule N: Adjustment of Investment Expenses is used to calculate your deductions for partnership losses and other expenses you had to earn property income in 2016.

Note: You’ll notice that there are fewer fields to fill out on your Schedule N in H&R Block’s Tax Software than there are on the form found on Revenu Québec’s website. That’s because our software automatically pulls information from other pages you’ve already finished. With that being said, you’re still required to enter the following information in order to calculate the deductions related to adjustment of your investment expenses: 

  • The total expenses you paid to earn property income: These are the total of expenses you paid to earn property income, including:
      • Repayment of interest received
      • Foreign income tax paid on income from property other than rental property
      • Life insurance premiums related to property income that isn’t rental income
      • Other expenses relating films
      • Repayment of an advance on a life insurance policy
  •  Other property income allocated by a trust and property income allocated to shareholders
  • Your unused adjustment of investment expenses amounts from previous years: This is the total of the amounts entered since 2004 for your adjustment of investment expenses and adjustment of other investment expenses, minus the amount already used to reduce your investment income for a previous year.  If this is the first time you’re completing Schedule N, leave this field blank.

Note: Don’t take into account any bad debts deducted in the calculation of property income.


Where do I claim this?

Follow these steps in H&R Block’s tax software to file your 2016 taxes:

Before you begin, make sure you tell us that you lived in QUÉBEC on December 31, 2016.

  1. On the PREPARE tab, click the LET'S TALK ABOUT 2016 icon.

  2. Select the checkbox labelled I had investments and/or investment income.

  3. Click the PENSION PLANS AND INVESTMENTS icon. You'll find yourself here:

  4. Under the INVESTMENT INCOME section, click the checkbox labelled Adjustment of investment expenses (Schedule N), then click Continue.

  5. When you arrive at the page for Adjustment of investment expenses, enter your information into the tax software.