Canadian Tax and
Financial Information
Non-Capital Loss

Ads keep this website free for you. does not research or endorse any product or service appearing in ads on this site.  Before making a major financial decision you  should consult a qualified professional.

Looking for US tax information?

Need an accounting, tax or financial advisor? Look in our Directory.  Use above search box to easily find your topic!   Stay Connected with!

What's New
Personal Tax
Sales Taxes
Free in 30!
Financial Planning
Real Estate
Stocks Bonds etc.
British Columbia
Atlantic Provinces
Federal Budget
Provincial Budgets
Statistics etc.
Site Map
Advertise With Us
Contact Us/About Us
Links & Resources

Glossary  -> 
Personal Income Tax ->
Small Business -> Non-Capital Loss

Non-Capital Loss

Income Tax Act s. 111(1), s. 111(8)

A non-capital loss includes unused losses from office, employment, business or property, and unused allowable business investment losses (ABIL).  

Non-capital losses can be carried back 3 years, or carried forward 7, 10 or 20 years.

The carry-forward periods are:

bullet for taxation years ending March 22, 2004 or earlier, 7 years.
bullet for taxation years ending after March 22, 2004, 10 years.
bullet for taxation years ending after 2005, 20 years (except ABIL).

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:  
     Businesses:  You could reduce or eliminate your capital cost allowance (CCA) claimed in the current year or prior years.
     Individuals:  If you have RRSPs or RRIFs, a withdrawal can create income to offset the non-capital loss.

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



Copyright © 2002 Boat Harbour Investments Ltd. All Rights Reserved.  See Reproduction of information from

Facebook  | Twitter  |  Google + |  Monthly Newsletter Sign-up  What’s New E-mail Notification RSS News Feed
The information on this site is not intended to be a substitute for professional advice.  Each person's situation differs, and a professional advisor can assist you in using the information on this web site to your best advantage. 
Please see our legal disclaimer regarding the use of information on our site, and our Privacy Policy regarding information that may be collected from visitors to our site.