Summary of Loss Applications.

Summary of Loss Applications    
Type of Loss Application rules Limit to annual deduction
Allowable business investment loss (ABIL) Any unapplied portion of an ABIL incurred in 2006 or future years becomes a non-capital loss that can be carried back three years and forward ten years.

 

Also, the unapplied portion of this non-capital loss becomes a net capital loss that can be used to reduce taxable capital gains in the tenth year or any year after.

No limit

 

 

 

 

 

 

Limited to taxable capital gains in the year

Net capital loss Carry back 3 years

Carry forward indefinitely

Limited to taxable capital gains in the year
Non-capital loss Carry back 3 years

Carry forward 20 years

No limit
Listed personal property (LPP) loss Carry back 3 years

Carry forward 7 years

Limited to net gains from LPP in the year
Personal-use property (PUP) loss No loss allowed Not applicable
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