Line 252 - Non-capital losses of other years

Generally, a non-capital loss for a particular year includes any loss incurred from employment, property or a business. If your allowable business investment loss (ABIL) realized in the particular year is more than your other sources of income for the year, include the difference as part of your non-capital loss.

You can carry a non-capital loss arising in 2003 or prior years back three years and forward seven years. You can carry a non-capital loss arising in taxation years ending after March 22, 2004, back 3 years and forward 10 years.

You can generally carry a non capital loss arising in taxation years ending after 2005, back three years and forward 20 years. However, this extension does not apply to a non-capital loss resulting from an ABIL. Instead, an ABIL that has not been used within ten tax years will continue to become a net capital loss in the eleventh year.

If you cannot deduct your ABIL arising in 2003 or prior years as a non-capital loss by the end of the seventh year, the unapplied part becomes a net capital loss. You can use this loss to reduce your taxable capital gains in the eighth year or any year after.

The unapplied part of your non-capital loss resulting from an ABIL arising in 2004 or future years will become a net capital loss in the eleventh year.

You can reduce your taxable income by deducting any unapplied non-capital losses you reported on your returns for the last 7 years or any unapplied farming or fishing losses for the last 10 years.

There are restrictions on the amount of certain farm losses that you can deduct each year. If you have a farming or fishing business, get the Farming Income guide or the Fishing Income guide.

Your available losses are usually shown on your Notice of Assessment or Notice of Reassessment for the previous years.

You can also contact us to find out if you have any available losses.

Completing your tax return

On line 252, claim the amount of allowable non-capital losses of other years.

Forms and publications

• General Income Tax and Benefit Guide
• Farming Income and CAISP (RC4060)
• Farming Income and the CAIS Program Harmonized Guide (RC4408)
• Farming Income guide (T4003)
• Fishing Income guide (T4004)
• IT232R3 Losses - Their Deductibility in the Loss Year or in Other Years

Related topics

• Capital losses
• Line 135 to 143 - Self-employment income
• Lines 217 and 228 - Business investment loss