Deduct net capital loss from a previous year against my current year capital gain?
Within certain limits, you can deduct your net capital losses of previous years that you have not already claimed. Your available losses are shown on your Notice of Assessment or Notice of Reassessment..
To apply your net capital losses of previous years against your net capital gains for the current tax year, do the following:
- If you are using EasyStep, select Go To Forms by pressing CTRL+R.
- From the View menu, select Find Form.
The Form Lookup window appears.
- In the Keyword to Search for field, type Loss.
- In the forms list, select Loss Worksheet and click OK.
The Loss Worksheet opens.
- In the Net Capital Losses section, enter the opening balance of your loss in the appropriate year.
(e.g., if you had a loss of $5000 in 2008, enter $5000 in the Opening Balance column of row 2009.)
- In the Claimed in (Year) column, enter the amount you want deduct to offset your gains in the current year..
(e.g., if your taxable capital gain in 2011 was $4000, enter $4000 in the Claimed in 2011 column (in the row for 2008.)
In this case you will still have $1000 of losses from 2008 to use in a future year.
You can check line 127 of your T1 General for your Taxable Capital Gains and also line 253 for the Net Capital Losses of other years. Line 253 will offset line 127.
To return to EasyStep (if applicable), from the View menu, select EasyStep Interview.