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Applying Capital Losses Against Capital Gains

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.