Chart 6 - How to claim an allowable business investment loss

Note

The CRA offer a printer-friendly version of this chart that is identical to the one in the .pdf version of the Capital Gains guide.

Chart 6 - How to claim an allowable business investment loss

Step 1 Business investment loss in 2018 (enter this amount on line 228 of your income tax and benefit return)

$ Blank space for dollar value

Line A

Step 2 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 and enter the result from line 15. Otherwise, enter "0."

$ Blank space for dollar value

Line B

 

Line A minus line B

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Line C

 

Step 3 Allowable business investment loss

Amount from line C

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× 1/2

$ Blank space for dollar value

Line D

Enter the amount from line D on line 217 of your income tax and benefit return.

Step 4 Attach a note to your income tax and benefit return that states the:

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

Calculation of the business investment loss reduction

The reduction calculated below is considered to be a capital loss for the year.

Total of all capital gains deductions claimed from 1985 to 2017

1. For 1985 to 1987, total of the amounts from line 254 of your income tax and benefit returns for these years

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× 2 =

$ Blank space for dollar value

Line 1

 

2. For 1988 and 1989 (other than for eligible capital property gains), total of the amounts from line 254 of your income tax and benefit returns minus any amounts reported on lines 543 and 544 on Schedule 3; if negative enter "0"

$ Blank space for dollar value

(a) × 3/2 =

$ Blank space for dollar value

Line 2

 

3. For 1988 and 1989 for eligible capital property gains, total of the amounts from line 254 of your income tax and benefit returns minus the amount calculated at line (a) above; not to exceed lines 543 and 544 on Schedule 3

$ Blank space for dollar value

× 4/3 =

$ Blank space for dollar value

Line 3

 

4. For 1990 to 1999, total of the amounts from line 254 of your income tax and benefit returns for these years

$ Blank space for dollar value

× 4/3 =

$ Blank space for dollar value

Line 4

 

5. For 2000, amount from line 254 of your income tax and benefit return

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× 1/IR* =

$ Blank space for dollar value

Line 5

6. For 2001 to 2017, total of the amounts from line 254 of your income tax and benefit returns for these years

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× 2 =

$ Blank space for dollar value

Line 6

 

7. Total of lines 1 to 6

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Line 7

Total of all other business investment loss reductions for 1986 to 2017

8. Total of amounts reported on line 535 of Schedule 3 of your 1986 to 1994 income tax and benefit returns

$ Blank space for dollar value

Line 8

 

9. Total of amounts reported on line 034 of Schedule 3 of your 1994 to 1996 income tax and benefit returns

$ Blank space for dollar value

Line 9

 

10. Total of amounts reported on line 178 of Schedule 3 of your 1997 to 1999 income tax and benefit returns

$ Blank space for dollar value

Line 10

 

11. Total of amounts reported on lines 293, 178, and 5668 of Schedule 3 of your 2000 income tax and benefit return

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Line 11

 

12. Total of amounts reported on line 178 of Schedule 3 of your 2001 to 2017 income tax and benefit returns

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Line 12

 

13. Total of lines 8 to 12

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=

$ Blank space for dollar value

Line 13

 

14. Line 7 minus line 13

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Line 14

Business investment loss reduction

15. Line 14 or line A from Step 1 above, whichever is less. Enter this amount on line B in Step 2 above and on line 178 of Schedule 3

$ Blank space for dollar value

Line 15

* This rate (IR) is from line 16 in Part 4 of Schedule 3 for 2000, or from your notice of assessment or latest notice of reassessment for 2000.

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