Capital losses occur when a taxpayer disposes of a capital property (such as stocks, bonds, or real estate, excluding a principal residence) for less than its adjusted cost base (ACB) plus any expenses incurred to sell it. These losses can be used to offset capital gains, reducing the amount of taxable capital gains for the year.
Example :
In 2022, Sophie, a Quebec resident, sold shares and realized a net capital loss of $50,000. With no capital gains in 2022 to offset, she carried forward the full loss. In 2024, Sophie sold TD Bank shares and realized a capital gain of $30,000.
Answer:
Capital gains of $15,000 are reported on line 12700 of the T1 tax return and on line 139 of the TP1 tax return. A capital loss of $15,000 from a prior year is reported on line 253 of the T1 tax return and on line 290 of the TP1 tax return. The remaining net capital loss continues to be carried forward indefinitely to offset future capital gains.
Posted on 15 January, 2026