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 3 previous years or in any future year.

You can apply your net capital losses of other years to your taxable capital gains in 2024. Your available losses are shown on your notice of assessment or reassessment for 2023. Your notice will show your prior-year losses and your current year loss after adjustment. You may have to adjust prior year losses to reflect the inclusion rate for 2024.

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 2021, 2022, or 2023, complete Form T1A, Request for Loss Carryback, and attach it with your 2024 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 will depend 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 2024. See "Completing your tax return" 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 2024, 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 2023 notice of assessment or notife of reassessment shows that you have unapplied net capital losses of other years, a 2023 net capital loss, or both, you can use Chart 4 – Applying net capital losses of other years to 2024 to determine your net capital losses that can be applied to 2024.

Situation B – If you have a balance of unapplied net capital losses you incurred before May 23, 1985 or you want to keep a breakdown of your unapplied net capital losses by year, use Chart 5 – Applying net capital losses of other years to 2024 if you have a pre-1986 capital loss balance 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 on line 25300 of your income tax and benefit return.

Forms and publications

• Federal income tax and benefit information
• Guide T4037, Capital Gains
• Archived Interpretation Bulletin IT-232R3, Losses – Their Deductibility in the Loss Year or in Other Years

Related topics

• Line 12700 – Taxable capital gains
• Capital losses and deductions
• Doing taxes for someone who died