Partnership losses

A partnership can have a loss. However, apply the loss carry-over rules to each partner, and not to the partnership.

For example, when you complete your own income tax return, combine your share of the partnership non-capital losses with any other non-capital losses you have in the year. Apply this amount against your income.

The loss carry-forward period is 20 years for:

• non-capital losses, farm losses, restricted farm losses and life insurer's Canadian life investment losses incurred; and
• investment tax credits earned for Scientific Research and Experimental Development (SR&ED).

For information about the loss carry-forward period for non-capital losses, see line 252. 

Forms and publications

• Guide T4002, Business and Professional Income