Capital gains and losses history

Keeping track of your capital gains and losses history is important because in many cases, the losses you experienced in one year can be used to reduce or offset the capital gains you realized in another. Completing this page will allow H&R Block’s tax software to apply your oldest losses first.

Important: Before you begin, be sure you have your most recent notice of assessment (NOA) on hand – you’ll need it to complete this page.

  • Tax year loss was incurred – Enter the capital gains or losses from each year. Your NOA shows the total capital gains or losses you’ve incurred to date. You can get a year-by-year breakdown of your capital gains or losses by signing into your CRA My Account (registration required).

  • Inclusion rate – The inclusion rate is used to determine the allowable capital loss that you can claim on your return. To determine the allowable amount, simply multiply your capital loss by the applicable inclusion rate. Since the inclusion rate for 2019 is 50%, you’d have to multiply your capital loss for the year by 50%. This means, you can apply half of your capital losses against any taxable capital gain in the year. Thankfully, H&R Block’s tax software will perform this calculation for you, based on the information you enter.

Note: You can find the applicable inclusion rate on your most recent NOA.

  • Taxable capital gain amount – Enter the capital gain amount you realized in a previous year; this amount can be found on your most recent NOA.

  • Unapplied net loss amount – Enter the amount of net capital losses incurred in a previous year that has been carried forward. This amount can be found on your most recent NOA.

  • Net loss applied from a prior year – This amount represents a net capital loss that has been carried forward from a previous year that you’re applying against a capital gain you’ve earned this year. You can find this amount by signing into your CRA My Account (registration required) or when you download your tax information from the government using the Auto-fill my return feature.

  • Net loss applied from a subsequent year – This amount represents a net capital loss that you incurred in the years following a capital gain that you want to apply to a previous year return. You can find this amount by signing into your CRA My Account (registration required) or when you download your tax information from the government using the Auto-fill my return feature.

    Example:

    George realized and reported a capital gain of $5,000 on his 2016 tax return. In 2019, he incurred a loss of $3,000. George can enter his loss of $3,000 that he incurred this year and apply it against his capital gain from 2016.

    Note: For information on how to request an adjustment to a prior year return, click here.