Business investment loss – Personal income tax

• Federal: Lines 21699 and 21700
• Tax year: 2025| Prior tax years: 2024 and earlier

On this page

• Who can claim
• How much you can claim
• How to claim

Who can claim

If you had a business investment loss in 2025, you may be able to deduct a portion of this loss from income. The amount of the loss you can deduct from your income is called your allowable business investment loss (ABIL).

How much you can claim

The amount that you can deduct is equal to: 

• Business investment loss for the year
• multiplied byCapital gains inclusion rate for the year
• equalsAllowable business investment loss (ABIL)

How to claim

Use chart for line 21700 of your Capital Gains Worksheet to determine your ABIL and, if applicable, report your business loss reduction on Schedule 3, Capital Gains or Losses. Claim the deduction for the ABIL on line 21700 of your income tax and benefit return. 

Attach a note to your income tax and benefit return that states:

• the name of the small business corporation
• the number and class of shares, or the type of debt you disposed of
• the insolvency, bankruptcy, or wind-up date
• the date you bought the shares, or the date you acquired the debt
• the amount of the proceeds of disposition
• the adjusted cost base of the shares or debt
• the outlays and expenses on the disposition
• the amount of the loss

Forms and publications

• Guide T4037, Capital Gains
• Schedule 3, Capital Gains or Losses
• Income Tax Folio S1-F5-C1, Related Persons and Dealing at Arm's Length
• Archived Interpretation Bulletin IT-232R3, Losses – Their deductibility in the Loss Year or in Other Years
• Income Tax Folio S4-F8-C1, Business Investment Losses

Related topics

• Line 25200 – Non-capital losses of other years
• Line 25300 – Net capital losses of other years
• Line 25400 – Capital gains deduction
• Capital losses