Line 25300 – Net capital losses of other years
- Return type: Personal income tax and benefit return
- Tax year: 2024
You can claim, within certain limits, your net capital losses from previous years that you have not already claimed on line 25300. For more information, on how to use a loss, see Capital losses.
If you have a net capital loss in 2024 and want to apply it to a previous year 2023, 2022, or 2021, see Applying your 2024 net capital loss to previous years.
What is a net capital loss
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.
How much you can claim
The amount you claim depends on when you incurred the loss. This is because the inclusion rate used to determine taxable capital gains and allowable capital losses has changed over the years.
Also, the way you apply these losses may differ if you incurred them before May 23, 1985.
Special rules for losses incurred before May 23, 1985
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 about those special rules, see Special rules for losses incurred before May 23, 1985.
When and how to apply your net capital losses
Applying your net capital losses of other years to 2024
You can use a net capital loss from a previous year to reduce a taxable capital gain in 2024.
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1. Determine if you have any unapplied net capital losses
Your available losses are usually shown on your notice of assessment or reassessment.
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2. Apply net capital losses of earlier years before you apply net capital losses of later years
For example, if you have net capital losses in 1994 and 1996 and want to apply them against your taxable capital gains in 2024, you have to follow a certain order:
- Apply your 1994 net capital loss against your taxable capital gain.
- Apply your 1996 net capital loss against it.
Keep separate balances of unapplied net capital losses for each year. This will help you keep track of your capital losses.
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3. Adjust the amount if the inclusion rates for earlier years are different from 2024
If the inclusion rates for the two years are different, you must adjust the amount of the net capital loss to match the inclusion rate for 2024. To determine your net capital losses of other years that you can apply to 2024, you can use one of the following charts, depending on your situation:
- Chart 4 – Determining your net capital losses of other years you can apply to 2024 if both of the following apply:
- You do not have a balance of unapplied net capital losses from before May 23, 1985
- Your 2023 notice of assessment or notice of reassessment shows that you have unapplied net capital losses of other years, a 2023 net capital loss, or both
- Chart 5 – Applying net capital losses of other years to 2024 if any of the following applies:
- You have a balance of unapplied net capital losses from before May 23, 1985
- You want to keep a breakdown of your unapplied net capital losses by year
- Chart 4 – Determining your net capital losses of other years you can apply to 2024 if both of the following apply:
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4. Claim the allowable amount on line 25300 of your 2024 return.
The deduction is limited to the taxable capital gains in the year.
Note
For net capital losses incurred before May 23, 1985, you may deduct an additional amount (up to $2,000) from other income. For more information, see Special rules for losses incurred before May 23, 1985.