---
title: "Canada Capital Loss Planner — Carryforward & Carryback Calculator"
description: "Calculate how to apply Canadian capital losses to offset gains. Handle carryforwards from prior years and carrybacks to 2022–2024 to recover past taxes. Based on CRA T4037."
canonical_url: "https://www.themoneypocket.com/tools/canada-capital-loss-planner"
last_updated: "2026-05-01T16:53:15.995Z"
---

**Make every loss count.** Enter your 2025 gains and losses, apply carryforward losses from prior years, or carry a 2025 net loss back to 2022–2024 to recover taxes already paid.

<canada-capital-loss-planner>



</canada-capital-loss-planner>

## How capital loss offsetting works in Canada

Capital losses can only be used to offset capital gains — they cannot be applied against employment income, business income, or other sources. Here is how the sequence works:

1. **Current year:** Apply 2025 capital losses against 2025 capital gains first
2. **Carryforward:** Apply net capital losses from prior years to remaining 2025 gains (claim on line 25300)
3. **Carryback:** If you still have a net capital loss in 2025, carry it back to reduce taxable capital gains in 2022, 2023, or 2024 — and get a refund

## Carryforward — no time limit

Net capital losses can be carried forward **indefinitely**. There is no expiry. A loss from 2012 is just as usable in 2025 as a loss from last year.

The only complication is when the losses were incurred at a different inclusion rate. For example, losses from 2000 (when the rate was 2/3) need to be adjusted if you're applying them against 2025 gains at 50%. The CRA provides Form T1436 (Capital Gains Worksheet) to handle this math.

## Carryback — 3 years back

You can apply a 2025 net capital loss to taxable capital gains from 2022, 2023, or 2024, in any order. To do so, file **Form T1A**, Request for Loss Carryback, with your 2025 return. The CRA will reassess the prior year and issue a refund.

The carryback amount is applied to the *taxable* capital gain (i.e., the gain after the inclusion rate was already applied). The refund is calculated at the marginal rate you were in during the prior year.

## Line references

<table>
<thead>
  <tr>
    <th>
      Amount
    </th>
    
    <th>
      Line on T1
    </th>
  </tr>
</thead>

<tbody>
  <tr>
    <td>
      Taxable capital gains
    </td>
    
    <td>
      Line 12700
    </td>
  </tr>
  
  <tr>
    <td>
      Capital gains deduction
    </td>
    
    <td>
      Line 25400
    </td>
  </tr>
  
  <tr>
    <td>
      Net capital losses of other years
    </td>
    
    <td>
      Line 25300
    </td>
  </tr>
  
  <tr>
    <td>
      Net capital loss for the year
    </td>
    
    <td>
      Used on Form T1A for carryback
    </td>
  </tr>
</tbody>
</table>

## Related tools and guides

- [Canadian Capital Gains Tax Calculator](/tools/canada-capital-gains-tax-calculator)
- [ACB Calculator for Stocks](/tools/acb-calculator)
- [Capital Losses in Canada: Carryback & Carryforward Guide](/articles/capital-losses-canada-carryback-carryforward)
- [How Capital Gains Tax Works in Canada (2025)](/articles/how-capital-gains-tax-works-canada-2025)
- [Capital Gains Inclusion Rate — History & 2025](/articles/capital-gains-inclusion-rate-canada)

---

*Disclaimer: Losses from years with different inclusion rates require adjustment using Form T1436. This calculator assumes 50% inclusion rate for all losses. Consult a qualified Canadian tax professional.*