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Another thread about capital losses brought a question to mind. Not wanting to hi-jack that thread, I am starting a new one. My 2009 notice of assessement came last week and it mentioned something about just over $2K in unused capital losses. What do I do with this if I don't anticipate any capital gains for the forseeable future? Can it be used as a tax deduction or credit off my income for 2010? What am I supposed to do with this if I don't own any capital and don't expect to own property in the near future?
 

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Read Chapter 5 of T4037. Capital losses can only be applied against capital gains, not other forms of income. If you had capital gains in 2006, 2007, or 2008 you can carry the 2009 losses back to those years by completing Section III of Form T1A, Request for Capital Loss Carryback. CRA will then re-asess the previous year's returns.

Or you can continue to carry it forward for use at a future date when you do have capital gains. Losses from previous years are entered as a deduction on Line 253.

You may receive taxable capital gains if you own mutual funds.
 

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My understanding is that capital losses can be carried forward indefinitely. If you sell a rental property for profit, or have capital gains from a non-reg portfolio, your cap loss can offset this.
 
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