Can I claim Capital loss from previous year in "T1A - Request for current year loss carryback"

[Liana]

I have capital loss from Year 2023 (eg. $1000), plus some unused capital loss from year 2022(eg. $2000), wondering if I can combine the loss from both year and claim the total($3000) in T1A From "Net Capital loss for carryback"?

Also the net capital loss for carry back should be the original loss ($3000) or  inclusion rate($1500), many thanks!

[Geo123]

Hello Liana,

If you incurred net capital losses in the current year, you can carry back these losses and apply them to the capital gains of the past THREE years.

1. In the "Left-side menu on the interview  tab", select "Interview setup".

2. On the right-hand side of the screen, go to the "Investment income and expenses" group, check the Box "Capital gains (or losses) and capital gain history", then go to the "Carryforward amounts and prior year information" group, check the Box for "Losses of prior years, carrybacks" and click on "Next" at the bottom of the screen.

3. Return to the "Left-side menu on the Interview tab" and select "Capital Gains (or losses) & ABIL" on the right-hand page, choose the option that suits you and enter your capital gains or capital losses.
4. Return once again to the "Left-side menu on the Interview tab" and select "Losses of prior years and carrybacks".

5. On the screen to the right, scroll down to "Loss carryback" group, and click on the plus "+" icon to the right of the line "T1A - Request for loss carryback (loss which occurred in 2023)".

1.    In the page that appears entitled "T1A - Request for current year loss carryback" choose the section that corresponds to your situation and select the year or years for which you want to apply your losses, starting with the loss from the earliest year to carry-back years.
2.    NOTE : For Stock / Share loss must include the inclusion rate of 50%

The program will generate Federal form T1A as well as Quebec form TP- 1012.A.

Quebec residents will have to print form TP- 1012.A, sign it and mail SEPARATELY from other documents, because it cannot be netfiled, whereas the Federal T1A can be sent via NETFILE.

The T1A does not affect the current year's tax return. The CRA and Revenu Québec will reassess the corresponding year's tax returns based on the information in the T1A or TP-1012. They will issue you a report later.

For more information on this topic, please see the following links

https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/personal-income/line-127-capital-gains/capital-losses-deductions.html
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-253-net-capital-losses-other-years.html

To carry back different types of losses, click  at the right.ie all types of losses

 
>>Have current year losses that can be applied (carried back) 
 
Eg. NOTE : For Stock / Share loss must include the inclusion rate of 50%

Shares loss -10,000 / 2 (due to 50% inclusion rate) = 5,000

 

 
>>Shares loss $5,000 CB

 

[Liana]

Thanks Geo! But for my loss is from last year , can I also carry back?

[clw]

Liana,

You can carry back a loss for up to three years, or carry forward indefinitely. So if you combine the losses, they would have to be applied to 2020 or 2021. Note that this has no effect on your 2023 return. The CRA will adjust your income for the year you carried back to and deposit your credit.

[Liana]

Hi Clw,

Thanks very much for your information! 
great community and helpful people:)

Liana