Business investment loss – Personal income tax
- Federal: Lines 21698, 21699 and 21700
- Tax year: 2024| Prior tax years: 2023 and earlier
On this page
Who can claim
The amount of the loss you can deduct from your income is called your allowable business investment loss (ABIL).
If you had a business investment loss in 2024, you may be able to deduct a portion of this loss from income.
- Business investment loss for the year
- multiplied byCapital gains inclusion rate for the year
- equalsAllowable business investment loss (ABIL)
How to claim
Use Chart 6 – Claiming an allowable business investment loss to determine your ABIL and, if applicable, your business investment loss reduction.
Chart 6 – Claiming an allowable business investment loss
The CRA offers a printer-friendly version of this chart that is identical to the one in the PDF version of the Capital Gains guide.
Use this chart to determine your allowable business investment loss (ABIL) and, if applicable, your business investment loss reduction. Claim the deduction for the ABIL on line 21700 of your income tax and benefit return. Enter the gross business investment loss on line 21698 of your return for Period 1 and line 21699 for Period 2.
Keep this document for your records. Do not attach it to your return.
Line 21700 – Allowable business investment loss
Step 1 – Calculate your business investment loss for 2024
Business investment loss in Period 1 (enter this amount on line 21698 of your return)
Blank space to input proceeds of disposition
Blank space to input amount
Line A
Business investment loss in Period 2 (enter this amount on line 21699 of your return)
+ Plus
Line B
Line A plus line B
Business investment loss for the year
=
Line C
Step 2 – Reduce your business investment loss, if applicable
If you claimed a capital gains deduction in a previous year, you have to reduce your business investment loss.
To determine the reduction, complete the calculation below:
Calculating your business investment loss reduction
The reduction calculated below is considered to be a capital loss for the year.
Capital gains deductions claimed from 1985 to 2023
For 1985 to 1987:
Total amounts from line 254 of your income tax and benefit returns for these years
Blank space to input amount
× Multiply by 2 = Equals
Blank space to input amount
Line 1
For 1988 and 1989 (other than for eligible capital property gains): Total amounts from line 254 of your returns minus any amounts reported on lines 543 and 544 of Schedule 3 (if negative, enter "0")
Blank space to input amount
(a) × Multiply by 1.5 = Equals
+ Plus
Line 2
For 1988 and 1989 (for eligible capital property gains): Total amounts from line 254 of your returns minus amount (a) above (cannot be more than the amounts from lines 543 and 544 of Schedule 3)
Blank space to input amount
× Multiply by 1.3333 = Equals
+ Plus
Line 3
For 1990 to 1999:
Total amounts from line 254 of your returns for these years
Blank space to input amount
× Multiply by 1.3333 = Equals
+ Plus
Line 4
For 2000:
Amount from line 254 of your return
Blank space to input amount
× Multiply by 1/IRNote de bas de page 1 = Equals
+ Plus
Line 5
For 2001 to 2023:
Total amounts from line 254 of your returns for 2001 to 2018 and line 25400 of your returns for 2019 to 2023
Blank space to input amount
× Multiply by 2 = Equals
+ Plus
Line 6
Add lines 1 to 6.
Total of all capital gains deductions claimed from 1985 to 2023
= Equals
Line 7
Other business investment loss reductions for 1986 to 2023
Total amounts from line 535 of Schedule 3 of your 1986 to 1994 returns.
Blank space to input proceeds of disposition
Blank space to input amount
Line 8
Total amounts from line 034 of Schedule 3 of your 1994 to 1996 returns.
+ Plus
Line 9
Total amounts from line 178 of Schedule 3 of your 1997 to 1999 returns.
+ Plus
Line 10
Total amounts from lines 293, 178 and 5668 of Schedule 3 of your 2000 income tax and benefit return.
+ Plus
Line 11
Total amounts from line 178 of Schedule 3 of your 2001 to 2018 returns and line 17800 of Schedule 3 of your 2019 to 2023 returns.
+ Plus
Line 12
Add lines 8 to 12
= Equals
− Minus
Line 13
Line 7 minus line 13
Total of all other business investment loss reductions for 1986 to 2023
= Equals
Line 14
Business investment loss reduction
Enter whichever is less: amount from line 14 or line A in Step 1. Enter this amount on line D in Step 2 and on line 17799 of Schedule 3.
Business investment loss reduction for period 1
− Minus
Line 15
Line 14 minus line 15
= Equals
Line 16
Enter whichever is less: amount from line 16 or line B in Step 1. Enter this amount on line F in Step 2 and on line 17800 of Schedule 3.
Business investment loss reduction for period 2
Blank space to input amount
Line 17
If you did not claim a capital gains deduction in prior years, enter the amount from line C on line G and continue at line H.
Enter your business investment loss reduction for period 1 from line 15.
− Minus
Line D
Line C minus line D
= Equals
Line E
Enter your business investment loss reduction for period 2 from line 17.
− Minus
Line F
Line E minus line F
= Equals
Line G
Step 3 – Calculate your allowable business investment loss
Inclusion rate for 2024
× Multiply by 50 %
Line H
Line G multiplied by the percentage on line H
Enter this amount on line 21700 of your return.
= Equals
Line I
Step 4 – Attach documentation
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
If applicable, report your business loss reduction on Schedule 3, Capital Gains or Losses and, claim the deduction for the ABIL on line 21700 of your income tax and benefit return.
For 2024, enter the gross business investment loss on line 21698 for losses in Period 1 and on line 21699 for losses in Period 2.