Partnership losses

Although the partnership can have a loss, the loss carry-over rules apply to each partner and not to the partnership.

For example, when you complete your own income tax return, combine your share of the partnership non-capital losses with any other non-capital losses you have in the year. Apply this amount against your income.

The losses can be carried back 3 years and carried forward for 20 years for non-capital losses, farming or fishing losses, restricted farming or fishing losses, and life insurer's Canadian life investment losses incurred.

For information about the loss carry-forward period for non-capital losses, go to Line 25200 – Non-capital losses of other years. 

Forms and publications

• Guide T4002, Self-employed Business, Professional, Commission, Farming, and Fishing Income 2020