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
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
− 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
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.
| 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 |
(E) Remaining adjustment net capital losses (column C minus column D) |
(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
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
− 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
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.
| 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 |
(E) Remaining adjustment net capital losses (column C minus column D) |
(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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