Personal Finance

Can one offset interest income against capital losses from current or previous years?

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  • Dec 12th, 2019 1:57 am
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Dec 11th, 2019 9:36 pm
jaguaar [OP]
Banned
Jan 20, 2017
584 posts
145 upvotes

Dec 11th, 2019 9:36 pm

Can one offset interest income against capital losses from current or previous years?

I have over $5K capital losses incurred few years ago. Since then every year I end up paying tax on small interest I earn from banks like Tangerine.
Is it possible to offset the earned interest amount against capital losses? If yes, How?
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Dec 11th, 2019 10:36 pm
TrevorK
Deal Expert
Aug 2, 2001
16645 posts
6899 upvotes

Dec 11th, 2019 10:36 pm

No.

Generally, if you had an allowable capital loss in a year, you have to apply it against your taxable capital gain for that year. If you still have a loss, it becomes part of the computation of your net capital loss for the year. You can use a net capital loss to reduce your taxable capital gain in any of the 3 preceding years or in any future year.

https://www.canada.ca/en/revenue-agency ... -loss.html

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