What happens if you have a capital loss?

If you have a capital loss in 2011, you can use it to reduce any capital gains you had in the year, to a balance of zero. If your capital losses are more than your capital gains, you may have a net capital loss for the year.

Generally, you can apply your net capital losses to taxable capital gains of the three preceding years and to taxable capital gains of any future years. For more information, see Capital losses and deductions.

Forms and publications

• T4037, Capital Gains
• Form T1A, Request for loss carryback
• Schedule 3, Capital gains (or losses)
• IT232, Losses - Their Deductibility in the Loss Year or in Other Years

Related topics

• Line 217 and Line 228- Business investment loss
• Line 252 - Non-capital losses of other years
• Line 253 - Net capital losses of other years