Applying Capital Losses Against Capital Gains

by Tax Guy - Burlington Accountant on February 17, 2009 Print This Post Print This Post

This question came in yesterday via out contact form.  We responded via e-mail but unfortunately, the e-mail was retuned undelivered.  We hope the sender receives this answer.

Question: I am filing my income tax return for 2007. I made a profit selling shares in 2007. However, in previous years I made a loss on shares. How do I show this in my returns for 2007? What forms would I use and where would I display the previous years losses.

If you had capital losses in prior years you may apply these losses to capital gains in subsequent years.  The capital losses from prior years should have been reported on your prior income tax returns on Schedule 3.  These capital losses would be recorded by the Canada Revenue Agency (CRA) and reported on your Notice of Assessment.

To use capital losses can be used by reported them on line 253 of your income tax return.

As a side note, we do try to respond to e-mails as soon as possible.  However, due to volume right now we may not respond as timely as we would like.

About The Tax Guy...

Dean Paley CGA CFP is a Burlington accountant and financial planner who services individuals and business owners locally, nationally and internationally. Dean has appeared in the National Post, Toronto Star and Metro News.

To find out more, visit Dean's website Dean Paley CGA CFP or connect via Twitter @DeanPaleyCGACFP.

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Richard June 8, 2009 at 3:08 pm

Read the article on cap gains
would a net gain say of $25k be offset by carried forward loss of $25k
Would the $25k still be considered income when filing

Tax Guy June 8, 2009 at 6:20 pm

@ Richard:
Capital losses carried forward can only be used to offset capital gains.

You would report both the gross capital gains, gross capital losses, and capital losses carried forward. Ultimately, these would net out.

lisa March 8, 2010 at 3:43 pm

is there asoftware program that I can use to track my losses and gains for my portfolio

Tax Guy March 10, 2010 at 1:27 pm

@Lisa: I’ve not come across any. I use a spreadhseet and the trade confirmations from my broker.

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