Line 25200 – Non-capital losses of other years
Note: Line 25200 was line 252 before tax year 2019.
Generally, a non-capital loss for a particular year includes any loss incurred from employment, property or 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.
You could have carried a non-capital loss arising in a tax year ending prior to March 23, 2004, back 3 years and forward 7 years. You can carry a non-capital loss arising in a tax year ending after March 22, 2004, through December 31, 2005, back 3 years and forward 10 years.
You can generally carry a non-capital loss arising in tax years ending after 2005, back 3 years and forward 20 years. However, this extension does not apply to a non-capital loss resulting from an ABIL. Instead, a non-capital loss resulting from an ABIL arising in tax years ending after March 22, 2004, that has not been used within 10 tax years will continue to become a net capital loss in the eleventh year. Also, a non-capital loss resulting from an ABIL arising in tax years ending prior to March 23, 2004, that was not used within 7 tax years became a net capital loss in the eighth year.
To carry a non-capital loss back to 2019, 2020, or 2021, complete Form T1A, Request for Loss Carryback, and include it with your 2022 Income Tax and Benefit Return (or send it separately). Do not file an amended return for the year to which you want to apply the loss.
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.
You can reduce your taxable income by deducting any unapplied non-capital losses you reported on your returns for the last 7 years or 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.
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.
Completing your tax return
Claim on line 25200 the amount of allowable non-capital losses of other years.
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 IT232R3, Losses – Their Deductibility in the Loss Year or in Other Years
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