Line 25300 – Net capital losses of other years
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Line 25300 – Net capital losses of other years
- Return type: Personal income tax and benefit return
- Tax year: 2025
You can claim, within certain limits, your net capital losses from previous years that you have not already claimed on line 25300. For more information, on how to use a loss, see Capital losses.
If you have a net capital loss in 2025 and want to apply it to a previous year 2024, 2023, or 2022, see Applying your 2025 net capital loss to previous years.
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What is a net capital loss
Generally, if you had an allowable capital loss in a year, you have to apply it against your taxable capital gain for that year. If you still have a loss, it becomes part of the computation of your net capital loss for the year.
You can use a net capital loss to reduce your taxable capital gain in any of the 3 previous years or in any future year.
How much you can claim
The amount you claim depends on when you incurred the loss. This is because the inclusion rate used to determine taxable capital gains and allowable capital losses has changed over the years.
Also, the way you apply these losses may differ if you incurred them before May 23, 1985.
Special rules for losses incurred before May 23, 1985
Special rules apply to losses you incurred before May 23, 1985. This also includes losses you incurred after May 22, 1985, on any disposition of capital property made under an agreement of sale you entered into before May 23, 1985. For more information about those special rules, see Special rules for losses incurred before May 23, 1985.
When and how to apply your net capital losses
Applying your net capital losses of other years to 2025
You can use a net capital loss from a previous year to reduce a taxable capital gain in 2025.
- 1. Determine if you have any unapplied net capital losses
Your available losses are usually shown on your notice of assessment or reassessment.
- 2. Apply net capital losses of earlier years before you apply net capital losses of later years
For example, if you have net capital losses in 1994 and 1996 and want to apply them against your taxable capital gains in 2025, you have to follow a certain order:
- Apply your 1994 net capital loss against your taxable capital gain.
- Apply your 1996 net capital loss against it.
Keep separate balances of unapplied net capital losses for each year. This will help you keep track of your capital losses.
- 3. Adjust the amount if the inclusion rates for earlier years are different from 2025
If the inclusion rates for the two years are different, you must adjust the amount of the net capital loss to match the inclusion rate for 2025. To determine your net capital losses of other years that you can apply to 2025, you can complete one of the following calculations on Form 1436, Capital Gains Worksheet, depending on your situation:
- Line 25300 – Net capital loss of other years (if you do not have pre-1986 capital loss balance) if both of the following apply:
- You do not have a balance of unapplied net capital losses from before May 23, 1985
- Your 2024 notice of assessment or notice of reassessment shows that you have unapplied net capital losses of other years, a 2024 net capital loss, or both
- Line 25300 – Net capital loss of other years (if you have pre-1986 capital loss balance) if any of the following applies:
- You have a balance of unapplied net capital losses from before May 23, 1985
- You want to keep a breakdown of your unapplied net capital losses by year
- Line 25300 – Net capital loss of other years (if you do not have pre-1986 capital loss balance) if both of the following apply:
- 4. Claim the allowable amount on line 25300 of your 2025 return.
The deduction is limited to the taxable capital gains in the year.
For net capital losses incurred before May 23, 1985, you may deduct an additional amount (up to $2,000) from other income. For more information, see Special rules for losses incurred before May 23, 1985.
Forms and publications
Adjusted cost base (ACB)
Advantage
Allowable capital loss
Arm’s length transaction
Business investment loss
Canadian controlled private corporation
Canadian security
Capital cost allowance
Capital gain
Capital loss
Capital property
Children
Common law partner
Deemed acquisition
Deemed cost
Deemed disposition
Deemed proceeds of disposition
Depreciable property
Disposition dispose of
Eligible amount of the gift
Eligible active business corporation
Eligible capital property
Eligible small business corporation
Excepted gift
Fair market value (FMV)
Flipped property
Flow through
Inclusion rate (IR)
Listed personal property (LPP)
Net capital loss
Non arm’s length transaction1
Nonqualifyingrealproperty1
Nonqualifyingsecurities1
Outlaysandexpenses1
Personal use property
Prescribedsecurity1
Proceeds of disposition
Public corporation
Qualifying Business Transfer
Qualified donee
Qualified farm or fishing property (QFFP)
Qualified small business corporation shares
Real property
Recapture
Small business corporation
Spouse
Taxable capital gain
Terminal loss
Underpreciated capital cost (UCC)
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2026-02-05