Business investment loss includes capital losses arising from the disposition of shares and debts of a small business corporation (SBC). SBC is a Canadian controlled private company in which 90% of its fair market value of its assets is business asset and 50% of the business must be carried in Canada. One half of this loss would be available as allowable business investment loss (ABIL). This loss is considered non-capital so this loss can offset any taxable income. However, this can only be carry back 3 years and forward for 10 years. After the tenth year, the losses not yet offset are converted to capital loss. Therefore, after the tenth year, the remaining losses can only offset capital gains.
Note that non-capital loss can be carry back three years and carry forward twenty years. This loss may be use to deduct any types of gain.