I'd like some clarification on how to claim capital loss.

1. If I have a loss of $5000 for year 2012 and a capital gain of $0 in 2012, am I correct in understanding I cannot take the loss for tax year 2012, but save it for later years and hopefully offset against any capital gains?

2. For example, in the above scenario, if I have a gain of $3000 in 2013 and $2000 gain in 2014, I can offset the gain by taking $3k of the $5k loss in 2013 and the remaining $2k of the $5k loss in 2014, thereby rendering any gains in those 2 years to zero. Is that correct?

If the above is true, how do I report the $5k loss for 2012? Or do I even have to report it somewhere so CRA has a record and knows that I will potentially offset gains in the future using this loss?

Thanks a bunch.

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Dimple2001

1. Yes

2. Yes

You do not have to report the loss this year (if you don't have a loss). CRA does have a record and it should appear in your Notice of Assessment.

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SS
Reiki Grand Master

Thanks sudesingh and ashedfc.

Ashedfc - The event of capital loss has already occurred through sale of rental property. I will be entering them for 2012 returns sometime in 2013. I am assuming rental property qualifies for capital loss/gain calculation.

I guess at that time, I can evaluate any offsets that are possible for 3 years prior and also use the loss for future years as applicable.

Thanks again.

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Dimple2001