Capital Loss against ordinary income

[Mubashar]

Is it allowed claim capital losses against ordinary income (T4 income) in order to lower your overall net income? Are there any guidelines from the CRA regarding this matter?

[Geo123]

Hello Mubashar,

Non-capital loss current year
When you apply non-capital losses against other sources of income, it lowers your taxable income for the year. This includes any loss incurred from employment, property or a business.  If you have leftover non-capital losses or unapplied losses from previous years (check your notice of assessment or reassessment), you can generally carry these amounts back up to 3 years by using form T1A: Request for loss carryback.

Line 25200 – Non-capital losses of other years 
Generally, a non-capital loss for a particular year includes any loss incurred from employment, property or a business. If your allowable business investment loss (ABIL) realized in the particular year is more than your other sources of income for the year, include the difference as part of your non-capital loss.
https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-25200-non-capital-losses-other-years.html