Chart 5 – Applying net capital losses of other years to 2024 (for taxpayers with a pre-1986 capital loss balance)

Note

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.

Complete this chart only 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. Otherwise, complete Chart 4.

Step 1 – Pre-1986 capital loss balance available for 2024

Complete this step only if you have a balance of unapplied net capital losses from before May 23, 1985.

Otherwise, enter "0" on line 3 and continue at Step 2.

Balance of unapplied net capital losses you had before May 23, 1985

Blank space to input proceeds of disposition

  Blank space to input amount

Line 1

Capital gains deductions you claimed:

Before 1988

  Blank space to input amount

In 1988 and 1989

  Blank space to input amount

× multiply by 0.75 = Equals

+ Plus

From 1990 to 1999

  Blank space to input amount

× multiply by 0.6667 = Equals

+ Plus

In 2000

  Blank space to input amount

× multiply by 1/(IR×2) = Equals

+ Plus

From 2001 to 2023

+ Plus

Total capital gains deductions after adjustment

= Equals

Transfer the result to the right

Minus

Line 2

Pre-1986 capital loss balance available for 2024: line 1 minus line 2

Blank space to input proceeds of disposition

  Blank space to input amount

Line 3

Step 2 – Applying net capital losses of other years to 2024

Before you begin, complete columns A to C of Chart A, Adjustment calculation for carry-forward losses.

Total unapplied adjusted net capital losses of other years:
Total of column C from Chart A

Blank space to input proceeds of disposition

  Blank space to input amount

Line 4

Taxable capital gains from line 12700 of your 2024 return

Blank space to input proceeds of disposition

  Blank space to input amount

Line 5

Enter whichever is less:
amount from line 4 or line 5.

Blank space to input proceeds of disposition

  Blank space to input amount

Line 6

Enter the amount of losses you want to claimFootnote 1 .

Minus

Transfer the result to the right

  Blank space to input amount

Line 7

If you did not complete Step 1, enter the amount from line 7 on line 25300 of your 2024 return. This is your 2024 deduction for net capital losses of other years. Do not complete lines 8 to 12, and enter the amount from line 7 on line 13 in Step 3. However, complete columns D to G of Chart A to calculate the balance of unapplied net capital losses available to carry forward to future years.

If you completed Step 1, complete lines 8 to 13 and columns D to G of Chart A to calculate the net balance of unapplied capital losses available to carry forward to future years.

Balance of unapplied adjusted net capital losses of other years not used to reduce taxable capital gains: line 4 minus line 7

Blank space to input proceeds of disposition

= Equals

Line 8

Enter whichever is less: amount from line 3, line 8, or $2,000.

Blank space to input proceeds of disposition

+ Plus

Line 9

Line 7 plus line 9

Deduction in 2024 for net capital losses of other years

Blank space to input proceeds of disposition

= Equals

Line 10

Enter the amount from line 10 on line 25300 of your 2024 return and complete Step 3 to calculate the balance of unapplied net capital losses available to carry forward to future years.

Step 3 – Calculating your balance of unapplied net capital losses of other years available to carry forward

Amount from line 7

Blank space to input proceeds of disposition

  Blank space to input amount

Line 11

Amount from line 9

Blank space to input proceeds of disposition

+ Plus

Line 12

Line 11 plus line 12

Total adjusted net capital losses of other years applied in 2024

Blank space to input proceeds of disposition

= Equals

Line 13

Chart A – Adjustment calculation for carry-forward losses

When you complete this table, replace “IR” with your inclusion rate for 2000. This rate 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.

Step 3 Table
Period net capital loss incurred

(A)

Amount of your unapplied net capital losses

(B)

Adjustment factor (for the inclusion rate)

(C)

Adjusted gross capital losses (column A multiplied by columns B)

(D)

Total adjusted net capital losses applied against taxable capital gains in 2024 

Footnote 2

(E)

Remaining adjustment net capital losses (column C minus column D)

Footnote 3

(F)

Adjustment factor (for carry-foward losses)

(G)

Net capital loss balance available to carry forward (column E multiplied by column F)

Before May 23, 1985   1       1  
After May 22, 1985, and before 1988   1       1  
In 1988 and 1989   0.75       1.33  
After 1989 and before 2000   0.6667       1.5  
In 2000   1/(IR × 2)       2 × IR  
After 2000 and before 2024   1       1  
Total              
Example

You have unapplied net capital losses of $6,000 you incurred before May 23, 1985. You claimed a capital gains deduction of $500 in 1986 and of $300 in 2000 (your inclusion rate in 2000 was 2/3 or 66.6666%). You also have the following unapplied net capital losses: $4,000 from 1988 and $6,000 from 1990. You reported a taxable capital gain of $10,000 (realized in Period 1) on line 12700 of your 2024 income tax and benefit return. You complete Chart 5 to calculate the maximum deduction you can claim for your unapplied net capital losses of other years in 2024 and to determine the loss balance that you can carry forward to a future year.

Step 1 – Pre-1986 capital loss balance available for 2024

Complete this step only if you have a balance of unapplied net capital losses from before May 23, 1985. Otherwise, enter "0" on line 3 and go to Step 2.

Balance of unapplied net capital losses you had before May 23, 1985

Blank space to input proceeds of disposition

6,000

Line 1

Capital gains deductions you claimed:

Before 1988

500

In 1988 and 1989

  Blank space to input amount

× multiply by 0.75 = Equals

+ Plus

From 1990 to 1999

  Blank space to input amount

× multiply by 0.6667 = Equals

+ Plus

In 2000

300

× multiply by 1/(IR×2) = Equals

+ Plus 225

From 2001 to 2023

+ Plus

Total capital gains deductions after adjustment

= Equals 725

Transfer the result to the right

Minus 725

Line 2

Pre-1986 capital loss balance available for 2024: line 1 minus line 2

Blank space to input proceeds of disposition

5,275

Line 3

Step 2 – Applying net capital losses of other years to 2024

Before you begin, complete columns A to C of Chart A, Adjustment calculation for carry-forward losses on the next page.

Total unapplied adjusted net capital losses of other years:
Total of column C from Chart A

Blank space to input proceeds of disposition

13,000

Line 4

Taxable capital gains from line 12700 of your 2024 return

Blank space to input proceeds of disposition

10,000

Line 5

Enter whichever is less:
amount from line 4 or line 5.

Blank space to input proceeds of disposition

10,000

Line 6

Enter the amount of losses you want to claimFootnote 4 .

Minus 10,000

Transfer the result to the right

10,000

Line 7

If you did not complete Step 1, enter the amount from line 7 on line 25300 of your 2024 return. This is your 2024 deduction for net capital losses of other years. Do not complete lines 8 to 12, and enter the amount from line 7 on line 13 in Step 3. However, complete columns D to G of Chart A to calculate the balance of unapplied net capital losses available to carry forward to future years.

If you completed Step 1, complete lines 8 to 13 and columns D to G of Chart A to calculate the net balance of unapplied capital losses available to carry forward to future years.

Balance of unapplied adjusted net capital losses of other years not used to reduce taxable capital gains: line 4 minus line 7

Blank space to input proceeds of disposition

= Equals 3,000

Line 8

Enter whichever is less: amount from line 3, line 8, or $2,000.

Blank space to input proceeds of disposition

+ Plus 2,000

Line 9

Line 7 plus line 9

Deduction in 2024 for net capital losses of other years

Blank space to input proceeds of disposition

= Equals 12,000

Line 10

Enter the amount from line 10 on line 25300 of your 2024 return and complete Step 3 to calculate the balance of unapplied net capital losses available to carry forward to future years.

Step 3 – Calculating your balance of unapplied net capital losses of other years available to carry forward

Amount from line 7

Blank space to input proceeds of disposition

10,000  Blank space to input amount

Line 11

Amount from line 9

Blank space to input proceeds of disposition

+ Plus 2,000

Line 12

Line 11 plus line 12

Total adjusted net capital losses of other years applied in 2024

Blank space to input proceeds of disposition

= Equals 12,000

Line 13

Chart A – Adjustment calculation for carry-forward losses

When you complete this table, replace “IR” with your inclusion rate for 2000. This rate 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.

Step 3 Table - Example
Period net capital loss incurred

(A)

Amount of your unapplied net capital losses

(B)

Adjustment factor (for the inclusion rate)

(C)

Adjusted gross capital losses(column A multiplied by columns B)

(D)

Total adjusted net capital losses applied against taxable capital gains in 2024 

Footnote 5

(E)

Remaining adjustment net capital losses (column C minus column D)

Footnote 6

(F)

Adjustment factor (for carry-foward losses)

(G)

Net capital loss balance available to carry forward (column E multiplied by column F)

Before May 23, 1985 6,000 1 6,000 6,000 0 1 0
After May 22, 1985, and before 1988 0 1 0 0 0 1 0
In 1988 and 1989 4,000 0.75 3,000 3,000 0 1.33 0
After 1989 and before 2000 5,000 0.667 4,000 3,000 1,000 1.5 1,500
In 2000 0 1/(IR × 2) 0 0 0 2 × IR 0
After 2000 and before 2024 0 1 0 0 0 1 0
Total     13,000 12,000 1,000    

You have to apply your older losses first. Because the total amount of adjusted losses that you used in 2024 was $12,000 (from line 13 above), you apply $6,000 of your adjusted net capital losses incurred before May 23, 1985, and $3,000 of your adjusted net capital loss incurred in 1988. You then uses $3,000 ($12,000 – $6,000 – $3,000) of your adjusted net capital loss incurred in 1990. You have unapplied net capital losses of $1,500 that you can carry forward to a future year.

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