What happens if you have a capital loss?

If you have a capital loss in 2022, you can use it to reduce any capital gains you had in the year, to a balance of zero. If your capital losses are more than your capital gains, you may have a net capital loss for the year.

Generally, you can apply your net capital losses to taxable capital gains of the three preceding years and to taxable capital gains of any future years. For more information, see Capital losses and deductions.

Forms and publications

• Guide T4037, Capital Gains
• Form T1A, Request for Loss Carryback
• Schedule 3, Capital Gains (or Losses)
• Archived Interpretation Bulletin IT232R3, Losses – Their Deductibility in the Loss Year or in Other Years

Related topics

• Line 21699 and Line 21700 – Business investment loss
• Line 25200 – Non-capital losses of other years
• Line 25300 – Net capital losses of other years