Line 25200 – Non-capital losses of other years
- Return type: Personal income tax and benefit return
- Tax year: 2024
If you have non-capital losses from previous years, you may be able to claim an amount and reduce your taxable income. Use line 25200 to claim the amount of allowable non-capital losses from other years on your tax return.
What is a non-capital loss
Generally, a non-capital loss for a particular year includes any loss incurred from:
- employment
- property
- a business
If your allowable business investment loss (ABIL) realized in the particular year is more than your other sources of income for the year, include the difference as part of your non-capital loss.
Tax tip
Your available losses are usually shown on your notice of assessment or notice of reassessment for the previous years. You can also contact the Canada Revenue Agency to find out if you have any available losses.
How long you can carry a non-capital loss
For non-capital losses arising in tax years ending after 2005, you can generally carry them back 3 years and forward 20 years.
Non-capital loss resulting from an ABIL
The extension for non-capital losses arising in a tax year ending after 2005 does not apply to a non-capital loss resulting from an ABIL.
Instead, non-capital losses are treated as shown in the table below:
| Tax year ending | If the loss is not used within | Then the loss |
|---|---|---|
| After March 22, 2004 | 10 tax years | Continue to become a net capital loss in the 11th year |
| Before March 23, 2004 | 7 tax years | Become a net capital loss in the 8th year |
For more information on ABIL, see Lines 21698, 21699, and 21700 – Business investment loss.
When and how to apply your non-capital losses
You can apply your non-capital losses by carrying them forward to a future year or back to a previous year, depending on your situation.
Claim a non-capital loss (carryforward)
You can reduce your taxable income by deducting any unapplied non-capital losses from previous years on line 25200 of your 2024 income tax and benefit return.
Carryforward limit
You can carry a non-capital loss forward for up to 20 years (unless it’s from an ABIL)
Using past non-capital or farming and fishing losses
You can reduce your taxable income by deducting:
- any unapplied non-capital losses you reported on your returns for the last 7 years
- any unapplied farming or fishing losses for the last 10 years
There are restrictions on the amount of certain farm and fishing losses that you can deduct each year. If you have a farming or fishing business, see Guide T4002, Self-employed Business, Professional, Commission, Farming, and Fishing Income.
Carry back a non-capital loss
To carry a non-capital loss back to 2023, 2022, or 2021, complete Form T1A, Request for Loss Carryback, and include it with your 2024 income tax and benefit return (or send it separately). Do not file an amended return for the year you want to apply the loss to.
Carryback limit
You can carry a non-capital loss back 3 years
Note
If you could not deduct your ABIL as a non-capital loss within the allowed time frame, the unapplied part becomes a net capital loss that can be used to reduce your taxable capital gains in any future year.
Forms and publications
- Form T1A, Request for Loss Carryback
- Guide T4002, Self-employed Business, Professional, Commission, Farming, and Fishing Income
- Guide RC4060, Farming Income and the AgriStability and AgriInvest Programs Guide
- Guide RC4408, Farming Income and the AgriStability and AgriInvest Programs Harmonized Guide
- Archived Interpretation Bulletin IT-232R3, Losses – Their Deductibility in the Loss Year or in Other Years