As per CRA;
Generally, if you had an allowable capital loss in a year, you have to apply it against your taxable capital gains for that year. If you still have a loss, it becomes part of the computation of your current year net capital loss. You can use a current year net capital loss to reduce your taxable capital gains in any of the 3 preceding years or in any future year.
The net capital losses of other years generally may be applied against taxable capital gains in the current year. Your available losses are shown on your notice of assessment or reassessment for 2018. Your notice will show your prior-year losses and your current year loss after adjustment. You only have to add those 2 amounts to calculate your total net capital loss available for 2019.
Carrying Losses Forward
Capital losses can be carried forward indefinitely and so are never lost.
- To do this, enter the amount you are claiming as a deduction on line 25300 of your income tax return ( T1).
- To claim the correct amount, you will need to be aware of the inclusion rate for the year of your loss.
The inclusion rate means the percentage of the capital gain that is included in your income. In previous years, it fluctuated greatly, so the Canada Revenue Agency publishes a list of inclusion rates for previous years. If your inclusion rate is 50 percent and you have a gross loss of $100,000, then your amount eligible to be carried forward is $50,000.