Lines 217 and 228 - What happens when you have an ABIL?
You can deduct your ABIL from your other sources of income for the year. If your ABIL is more than your other sources of income for the year, include the difference as part of your non-capital loss for 2018.
You could have carried a non-capital loss arising in 2003 or prior years, back 3 years and forward 7 years. You could have carried a non-capital loss arising in a tax year ending after March 22, 2004 through December 31, 2005, back 3 years and forward 10 years.
Although you can generally carry a non-capital loss arising in tax years ending after 2005, back 3 years and forward 20 years, this extension does not apply to a non-capital loss resulting from an ABIL. Instead, a non-capital loss resulting from an ABIL that has not been used within 10 tax years will become a net capital loss in the eleventh year.
To carry a non-capital loss back to 2015, 2016, or 2017, complete Form T1A, Request for Loss Carryback, and include it with your 2018 Income Tax and Benefit Return (or send it to the CRA separately). Do not file an amended return for the year to which you want to apply the loss.
If you did not deduct your ABIL arising in 2003 as a non-capital loss by the end of the seventh year (2010), the unapplied part became a net capital loss in 2011. You can use this loss to reduce your taxable capital gains in 2011 or any future year.
The unapplied part of your non-capital loss resulting from an ABIL arising in 2004 or future years, will become a net capital loss in the eleventh year.
Any ABIL that you claim for 2018 will reduce the capital gains deduction you can claim in 2018 and in future years.
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