How do you apply your 2023 net capital loss to previous years?
You can carry your 2023 net capital loss back to 2020, 2021, and 2022 and use it to reduce your taxable capital gains in any of these years. When you carry back your net capital loss, you can choose the year(s) to which you apply the loss.
Note
When you apply a net capital loss back to a previous year's taxable capital gain, it will reduce your taxable income for that previous year. However, your net income, which is used to calculate certain credits and benefits, will not change.
If you carry your 2023 net capital loss back to 2020, 2021 or 2022, you do not have to adjust the amount of the 2023 net capital loss since the inclusion rate is the same for these years.
To apply a 2023 net capital loss to 2020, 2021, or 2022, complete "Section III – Net capital loss for carryback" on Form T1A, Request for Loss Carryback. This form will also help you determine the amount you have left to carry forward to future years. Do not file an amended income tax and benefit return for the year to which you want to apply the loss.
Note
If you apply a 2023 net capital loss to a previous year, any capital gains deduction that you claimed in that year, or a following year, may be reduced.
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