What is a net capital loss?
Generally, when allowable capital losses are more than taxable capital gains, the difference is a net capital loss. The rate used to determine the taxable part of a capital gain and the allowable part of a capital loss is called an inclusion rate.

For 2022, the inclusion rate is one-half. Therefore, an allowable capital loss is one-half of a capital loss and a taxable capital gain is one-half of a capital gain.

Forms and publications

• Guide T4011, Preparing Returns for Deceased Persons
• Guide T4037, Capital gains