Offset Capital Gains With Capital Losses

By QuickBooks Canada Team

0 min read

Capital losses can be used to offset capital gains, lowering your overall tax bill. As a rule, the losses must offset the gains made in the year when they are incurred. However, for many people, the gains and losses do not occur in the same year.

If that is the case, you may use capital losses to offset gains from the three previous years and indefinitely for future years. For example, if you sell a commercial building at a loss in 2016, you will be able to use the loss to offset capital gains going as far back as 2013 and indefinitely in the future. To apply losses to past years, use Form T1A (Request for Loss Carryback).

References & Resources

Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

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