Loss worksheet - applying losses of other years

Limited partnership losses

A limited partner is someone whose liability as a member of a partnership is limited against partnership creditors, unlike general partners, whose personal liability for the debts and obligations of the partnership is not limited. The Income Tax Act allows the following amounts to flow out (be passed on) to limited partners:

Investment tax credits - except those for research and development that can't flow out;
Business losses;
Property losses.

As a limited partner, you can claim losses only to the extent that your investment in the partnership is at-risk. This is your at-risk amount.

Entering this amount: See Line 25100 - enter using forms.

Non-Capital Losses, including farming and fishing losses

Non-capital losses include losses from businesses or certain types of investment losses. As a general rule, non-capital losses that are carried forward from previous years may be applied against other income of the current year. For further details, see Non-capital losses of other years - Line 25200.

Restricted Farming Losses: If farming was not your chief source of income for a particular year, you may be able to deduct only part of your net farm loss. For the years in which your farming losses were subject to these restrictions, complete the "Restricted Farming Losses" section of the Loss Worksheet. For years in which you were not subject to restrictions, complete the "Farming/Fishing" non-capital losses section.
Entering this amount: See Line 25100 - enter using forms.

Listed Personal Use Property Losses

You can deduct capital losses on listed personal property (LPP) against other listed personal property gains of the year. However, you cannot claim a capital loss on the disposal of personal use or listed personal use property against other income. If you dispose of LPP in 2023:

you can only deduct LPP losses from any gains you had from selling other LPP;
the total amount of LPP losses you deduct in the year cannot be more than the total LPP gains for that year; and
you cannot use this loss to reduce any capital gains you had from selling other types of property.

Net Capital Losses

You can carry your net capital loss forward indefinitely to a future year and apply it against your net taxable capital gains.

The taxable part of a capital gain and the allowable part of a capital loss are not the same for every year. The rate used to determine the amount of the gain that is taxable (or the amount of loss allowable) is called the inclusion rate.

You have to adjust your net capital loss when you apply it against a taxable capital gain in a year that has a different inclusion rate. TurboTax adjusts your net capital loss depending on the year it occurred. The amount that appears in the column, Adjusted Net Capital Losses is the amount that could be applied against your 2023 capital gains. The Closing Balance is the unapplied amount converted back to the inclusion rate of the year the loss occurred.

Entering this amount

What was the inclusion rate (IR) in previous years?

For details on the inclusion rate (IR) in previous years, see Inclusion rates for previous years on the CRA website.