Applying your net capital losses of other years to 2024

You can apply your net capital losses of other years to your taxable capital gains in 2024. To do this, claim a deduction on line 25300 of your 2024 income tax and benefit return. However, the amount you claim depends on when you incurred the loss. This is because the inclusion rate used to determine taxable capital gains and allowable capital losses has changed over the years. 

You have to apply net capital losses of earlier years before you apply net capital losses of later years. For example, if you have net capital losses in 1994 and 1996 and want to apply them against your taxable capital gains in 2024, you have to follow a certain order. First, apply your 1994 net capital loss against your taxable capital gain. Then apply your 1996 net capital loss against it. Keep separate balances of unapplied net capital losses for each year. This will help you keep track of your capital losses.

You can use a net capital loss of a previous year to reduce a taxable capital gain in 2024. If the inclusion rates for the two years are different, you must adjust the amount of the net capital loss to match the inclusion rate for 2024. To do so, you can use the Chart 4 or Chart 5 depending on your situation.

Completing your return

To apply your net capital losses of other years against your taxable income, enter the amount you are claiming as a deduction on line 25300 of your 2024 income tax and benefit return.

Special rules apply if you have a balance of unapplied net capital losses from before May 23, 1985. Before claiming your deduction, see Losses incurred before May 23, 1985.

If you do not have a balance of unapplied net capital losses from before May 23, 1985, and your 2023 notice of assessment or notice of reassessment shows that you have unapplied net capital losses of other years, a 2023 net capital loss, or both, you can use Chart 4 – Determining your net capital losses of other years you can apply to 2024 to determine your net capital losses of other years that you can apply to 2024.

If you have a balance of unapplied net capital losses from before May 23, 1985, or you want to keep a breakdown of your unapplied net capital losses by year, use Chart 5 – Applying net capital losses of other years to 2024, to calculate your available losses. You will have to adjust certain losses you incurred after 1987 and before 2001.

For more information on determining your net capital losses of other years that you can apply to 2024 and your unapplied balance that you can carry forward to future years, see Determining your net capital losses of other years you can apply against 2024.

Forms and publications

• Guide T4037, Capital Gains
• Archived Interpretation Bulletin IT-232, Losses - Their Deductibility in the Loss Year or in Other Years

Related Topics

• Line 25300 – Net capital losses of other years
• Summary of loss application rules