Note that the extension of the carry-forward period to 20 years does not apply to unused allowable business investment losses (ABIL), which can only be carried forward 10 years.
Non-capital losses unused after the carry-forward period expire, and are simply lost. Any unused ABIL after the carry-forward period becomes a net capital loss, which can be carried forward indefinitely to be offset against capital gains.
Tax Tips - If you
have non-capital losses that are going to expire:
Businesses: You could reduce or eliminate your capital cost allowance (CCA) claimed in the current year or prior years.
Individuals: If you have RRSPs or RRIFs, a withdrawal can create income to offset the non-capital loss.
For further information see the CRA web page Non-capital losses of other years.
See also capital gain or loss, which includes net capital losses.
Revised: February 23, 2016
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