Small Business -> Non-Capital Loss
Income Tax Act s. 111(1), s. 111(8)
Non-capital losses can be carried back 3 years, or carried forward 7, 10 or 20 years.
The carry-forward periods are:
Note that the extension of the carry-forward period to 20 years does not apply to unused allowable business investment losses (ABIL), which can only be carried forward 10 years.
Non-capital losses unused after the carry-forward period expire, and are simply lost. Any unused ABIL after the carry-forward period becomes a net capital loss, which can be carried forward indefinitely to be offset against capital gains.
Tax Tips - If you
have non-capital losses that are going to expire:
For further information see the Canada Revenue Agency (CRA) web page Non-capital losses of other years.
See also capital gain or loss, which includes net capital losses.
Revised: May 27, 2018
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