Line 25300 – Net capital losses of other years
Generally, if you had an allowable capital loss in a year, you have to apply it against your taxable capital gain for that year. If you still have a loss, it becomes part of the computation of your net capital loss for the year. You can use a net capital loss to reduce your taxable capital gain in any of the three preceding years or in any future year.
You can apply your net capital losses of other years to your taxable capital gains in 2023. Your available losses are shown on your notice of assessment or reassessment for 2022. Your notice will show your prior-year losses and your current year loss after adjustment. You only have to add those two amounts to calculate your total net capital loss available for 2023.
To use net capital losses of prior years to reduce current year taxable capital gains, claim a deduction on line 25300 of your income tax and benefit return. To carry a current year net capital loss back to 2020, 2021, or 2022, complete Form T1A, Request for Loss Carryback, and include it with your 2023 income tax and benefit return. Do not file amended returns for any of the years to which you want to apply a portion of the loss.
The amount that you can claim depends on when you incurred the loss. This is because the inclusion rates used to determine the taxable capital gains and allowable capital losses have changed over the years.
There are two charts that can be used to determine your unapplied net capital losses available to apply to 2023. See "Completing your tax return" area below to determine which chart you should use.
Completing your tax return
Special rules apply to losses you incurred before May 23, 1985. This also includes losses you incurred after May 22, 1985, on any disposition of capital property made under an agreement of sale you entered into before May 23, 1985. For more information, see Losses incurred before May 23, 1985.
If you need to determine the amount of net capital losses available to apply to 2023, read the information under Situation A and Situation B, and then select the appropriate chart.
Situation A – If you do not have a balance of unapplied net capital losses from before May 23, 1985, and your 2022 notice of assessment or reassessment shows that you have unapplied net capital losses of other years or a 2022 net capital loss, you can use Chart 4 – Applying net capital losses of other years to 2023 to determine your net capital losses that can be applied to 2023.
Situation B – If you have a balance of unapplied losses you incurred before May 23, 1985 or you want to keep a breakdown of your unapplied net capital losses, use Chart 5 – Applying net capital losses of other years to 2023 to calculate your available losses. You will have to adjust certain losses you incurred after 1987 and before 2001.
Once you have determined the amount of net capital losses available for use, enter the amount calculated either from line 6 of Chart 4 or from line 13 of Chart 5, on line 25300 of your income tax and benefit return.
Forms and publications
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