An election allows you to choose a specific tax treatment for certain situations. Here's how to file an election using Wealthsimple Tax:

When to file an election

Common scenarios include:

• Claiming a capital loss on a defunct asset (subsection 50(1) of the Income Tax Act)
• Changing the use of a property
• Electing to pay tax in installments

Steps to file an election

1. Add the File an election section to your profile
2. Check the box indicating you're filing an election
3. Select the specific election you're filing (e.g., subsection 50(1) for defunct assets)
4. Enter the required information in your tax return related to the election

Additional requirements

Most elections require additional documentation:

1. Prepare a letter detailing:
   • The specific election you're making
   • Why you qualify for the election
   • Relevant details (e.g., for defunct assets: share details, reason for applying 50(1))
2. Gather supporting documents
3. Submit your letter and documents:
   • Upload to your CRA My Account, or
   • Mail to your tax center

Example: Subsection 50(1) election for defunct assets

1. Check the election box in Wealthsimple Tax
2. Prepare a letter with:
   • Share details
   • Explanation of why 50(1) applies
   • Supporting documents proving the asset is defunct
3. Upload the letter and documents to CRA My Account

Important notes

• Filing an election in Wealthsimple Tax doesn't automatically send documentation to the CRA
• You're responsible for submitting the required letter and documents
• Some elections may affect future tax years, so keep records of your election

For help indicating an election in Wealthsimple Tax please contact our support team. For advice on specific elections or their tax implications please consider consulting a tax expert.