Can a capital loss be carried forward to another year?

This capital loss can be carried forward to future years, see step 11, and will be recorded at V Net capital losses carried forward to later income years item 18 on your tax return (supplementary section). If you have no current year capital losses or unapplied net capital losses from earlier years, go to step 8. Otherwise, read on.

What is my net capital losses amount to be carried forward?

Your net capital losses amount to be carried forward is the total of any: capital losses from collectables to be applied in future income years from step 4. You will need to keep a separate record of unapplied net capital losses from collectables because you can only use these to reduce capital gains from collectables in later income years.

Can a capital loss carryover be used to offset capital gains?

Yes, you can use capital loss carryovers to offset capital gains in the same tax year. This is one of the primary purposes of carrying forward capital losses—to reduce or eliminate the tax liability on capital gains in the current year. What are the advantages of using capital loss carryovers in tax planning?