What do you do when you have a capital loss?

When you redeem your units or shares, if the proceeds of disposition are less than the total of the adjusted cost base and any outlays and expenses, you will have a capital loss.

If you have a capital loss, you can use it to reduce any capital gains you had in the year.

If your allowable capital loss is more than your taxable capital gain, you may have a net capital loss.

You can use a net capital loss to reduce taxable capital gains in any of the three previous years, or in any future year. You cannot, however, use this loss to reduce any other income. For information on capital losses, see Capital losses and deductions.

Forms and publications

• Guide T4037, Capital Gains
• Archived Interpretation Bulletin IT232R3, Losses – Their Deductibility in the Loss Year or in Other Years