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Chart 5 - Applying net capital losses of other years to 2011
(for clients with a pre-1986 capital loss balance)
Note
We offer a printer-friendly version of this chart that is identical to the one in the printed Capital Gains guide.
Use this chart to apply your net capital losses of other years to 2011 and to calculate your balance of unapplied losses you can carry forward to a future year.
When you complete this chart, replace "IR" with your inclusion rate for 2000. This rate is from line 16 in Part 4 of Schedule 3 for 2000, or from your notice of assessment or latest notice of reassessment for 2000.
| 1. | Balance of unapplied net capital losses you had before May 23, 1985 | $ | 1 | |||||||||
| 2. | Capital gains deductions you claimed: | |||||||||||
| Before 1988 | $ | |||||||||||
| In 1988 and 1989 | $ | × 3/4 = | + | |||||||||
| From 1990 to 1999 | $ | × 2/3 = | + | |||||||||
| In 2000 | $ | × [1 ÷ (2 × IR)] = | + | |||||||||
| From 2001 to 2010 | + | |||||||||||
| Total capital gains deductions after adjustment | = | $ |  |
− | $ | 2 | ||||||
| 3. | Pre-1986 capital loss balance available for 2011 (line 1 minus line 2) | = | $ | 3 | ||||||||
| 4. | Total unapplied adjusted net capital losses of other years (total from line C in Step 3) | $ | 4 | ||||||
| 5. | Taxable capital gains from line 127 of your 2011 income tax and benefit return | $ | 5 | ||||||
| 6. | Enter the amount from line 4 or line 5, whichever is less | $ | 6 | ||||||
| 7. | You can apply all, or part, of the amount on line 6 against your taxable capital gains in 2011. Enter on line 7 the amount of losses you want to claim | − | $ | 7 | |||||
| If you did not complete Step 1, enter the amount from line 7 on line 253 of your 2011 income tax and benefit return. This is your deduction in 2011 for net capital losses of other years. Do not complete lines 8 to 15 and enter this same amount on line 16 in Step 3. However, complete lines D to G in Step 3 of this table to calculate the net capital losses available to carry forward to future years. If you completed Step 1, complete lines 8 to 16 and lines D to G in Step 3 of this table to calculate the net capital losses available to carry forward to future years. |
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| 8. | Balance of unapplied adjusted net capital losses of other years not used to reduce taxable capital gains (line 4 minus line 7) | = | $ | 8 | |||||
| 9. | Amount from line 8 | $ | 9 | ||||||
| 10. | Amount from line 3 | $ | 10 | ||||||
| 11. | Pre-1986 deductible amount | $ | 2,000 | 11 | |||||
| 12. | Line 9, 10, or 11, whichever is less | + | $ | 12 | |||||
| 13. | Deduction in 2011 for net capital losses of other years (line 7 plus line 12). Enter this amount on line 253 of your 2011 income tax and benefit return and complete the rest of the chart to determine your balance of unapplied net capital losses available to carry forward. | = | $ | 13 | |||||
| 14. | Amount from line 7 | $ | 14 | ||
| 15. | Amount from line 12 | + | $ | 15 | |
| 16. | Total adjusted net capital losses of other years applied in 2011 (line 14 plus line 15) | = | $ | 16 |
When you complete this table, replace "IR" with your inclusion rate for 2000. This rate is from line 16 in Part 4 of Schedule 3 for 2000, or from your notice of assessment or latest notice of reassessment for 2000.
| (Do not complete the shaded areas) | Before May 23, 1985 | After May 22, 1985, and before 1988 | In 1988 and 1989 | After 1989 and before 2000 | In 2000 | After 2000 and before 2011 | Total | |
|---|---|---|---|---|---|---|---|---|
| A | Amount of your unapplied net capital losses | |||||||
| B | Adjustment factor | 1 | 1 | 3/4 | 2/3 | 1 ÷ (2 × IR) | 1 | |
| C | (Line A × line B) | |||||||
| D | Total adjusted net capital losses applied against taxable capital gains in 2011 (the total must equal the amount on line 16) | |||||||
| E | (Line C − line D) | * | ||||||
| F | Adjustment factor | 1 | 1 | 4/3 | 3/2 | 2 × IR | 1 | |
| G | Net capital losses available to carry forward to future years (Line E ×line F) |
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* The total for line E should be equal to the amount shown on your notice of assessment or reassessment for net capital losses of other years available for 2012.
Example of a completed Chart 5 
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