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, go to Line 252 – Non-capital losses of other years.
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