Glossary -> Allowable business investment loss
Allowable Business Investment Loss (ABIL)
An allowable business investment loss (ABIL):
 | is 50% of a business investment loss |
| is treated differently from allowable capital losses in that it can be used to reduce all sources of income |
| can be carried back or carried forward as a non-capital loss. See the glossary item non-capital loss for carry-back and carry-forward periods. |
| if unused after 10 years can then be treated as a net capital loss and carried forward indefinitely to be deducted against taxable capital gains |
For further information see Business investment loss on the Small Business page.
Revised: May 19, 2025