Did you report capital losses in previous tax years? If so, you may be able to use those losses in the current or prior three income tax years (if you have not been able to claim these losses in the past).
How Capital Loss Carryover Works
When you sell an investment or property during a tax year for less than you paid for it, you may have a capital loss. Any losses must be first applied to capital gains in the tax year and any excess losses cab be carried back three years or forward indefinitely.
Take Advantage of Past Capital Losses
As the tax year draws to a close, take this opportunity to review your Notice of Assessment or Notice of Reassessment sent to you from the CRA. On the from page, the CRA will tell you if you have claimed capital losses in prior years and are carrying them forward.
If you have stocks or mutual funds that are currently trading at a gain, you might want to take this time to sell your investments and offset the capital gains you your capital losses. If you have had capital gains in the prior three years and would like to use your net capital losses, you can file an amendment to your prior years tax return or claim it on all on your current tax return.
Related Articles
- Applying Capital Losses Against Capital Gains
- Stock Options & Non-Related Capital Losses
- Inheritance Of Capital Losses
- Net Capital Losses
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{ 1 comment… read it below or add one }
My spouse passed away on 8Nov 2008. He had accrued up to $25000
capital losses over the last 10 yrs.This tax yr , i.e 2008 there was no capital gain. I was told that in his final return, I could apply his INCOME against his capital losses.
His income in 2008 was only $5220.
After putting his fiqures in Quiktax, his refund came to $345.
His net income came to $4770.
Does it make sense that I apply $4770 to reduce his capital losses..what line does that go on, in the tax program, or am I not reading this correctly? Please help as this is confusing me?
Thanks