Chart 6 – How to claim an allowable business investment loss
Note
The CRA offers a printer-friendly version of this chart that is identical to the one in the PDF version of the Capital Gains guide.
Step 1 – Business investment loss in 2023 (enter this amount on line 21699 of your income tax and benefit return)
$
Line A
Step 2 – If you claimed a capital gains deduction in a previous year, you have to reduce your business investment loss. To determine the reduction, complete the calculation below and enter the result from line 15 on line B. Otherwise, enter "0."
–
Line B
Line A minus Line B
= $
Line C
Step 3 – Allowable business investment loss
Amount from line C
$
x 1/2
= $
Line D
Enter the amount from line D on line 21700 of your income tax and benefit return.
Step 4 – Attach a note to your income tax and benefit return that states the:
- name of the small business corporation
- number and class of shares, or the type of debt you disposed of
- insolvency, bankruptcy, or wind-up date
- date you bought the shares, or the date you acquired the debt
- amount of the proceeds of disposition
- adjusted cost base of the shares or debt
- outlays and expenses on the disposition
- amount of the loss
Calculation of the business investment loss reduction
The reduction calculated below is considered to be a capital loss for the year.
Total of all capital gains deductions claimed from 1985 to 2022
1. For 1985 to 1987, total of the amounts from line 254 of your income tax and benefit returns for these years
$
x 2
$
Line 1
2. For 1988 and 1989 (other than for eligible capital property gains), total of the amounts from line 254 of your returns minus any amounts reported on lines 543 and 544 on Schedule 3 (if negative, enter "0")
$
(a) x 3/2
+
Line 2
3. For 1988 and 1989 for eligible capital property gains, total of the amounts from line 254 of your returns minus the amount calculated at line (a) above; not to exceed lines 543 and 544 on Schedule 3
$
x 4/3
+
Line 3
4. For 1990 to 1999, total of the amounts from line 254 of your returns for these years
$
x 4/3
+
Line 4
6. For 2001 to 2022, total of the amounts from line 254 of your returns for 2001 to 2018 and line 25400 of your returns for 2019 to 2022
$
x 2
+
Line 6
7. Total of lines 1 to 6
= $
Line 7
Total of all other business investment loss reductions for 1986 to 2022
8. Total of amounts reported on line 535 of Schedule 3 of your 1986 to 1994 returns
$
Line 8
9. Total of amounts reported on line 034 of Schedule 3 of your 1994 to 1996 returns
+
Line 9
10. Total of amounts reported on line 178 of Schedule 3 of your 1997 to 1999 returns
+
Line 10
11. Total of amounts reported on lines 293, 178, and 5668 of Schedule 3 of your 2000 income tax and benefit return
+
Line 11
12. Total of amounts reported on line 178 of Schedule 3 of your 2001 to 2018 returns, and line 17800 of Schedule 3 of your 2019 to 2022 returns
+
Line 12
13. Total of lines 8 to 12
= $
– $
Line 13
14. Line 7 minus line 13
= $
Line 14
Business investment loss reduction
15. Line 14 or line A from Step 1 above, whichever is less. Enter this amount on line B in Step 2 above and on line 17800 of Schedule 3.
$
Line 15
Page details
- Date modified: