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Everyone talks about capital gains. What happens with a loss?

Where losses go and how long they last.

Asked

Everyone discusses capital gains when making $ but what happens with a loss? How does a loss in purchasing a condo work? Lived in it for ~2 years and have been renting out since then? Bought condo in Edmonton in 2005/06. After the 2008 recession, value plummeted. Want to sell when value approaches my mortgage at least. How is does a loss work? Many thanks!

Clint’s answer

Hi there!

A capital loss can be applied against a capital gain for tax deduction purposes.

You can carry it back for 3 years upon the realized loss after selling your condo, or carry the loss forward indefinitely until you have a capital gain to offset it with

May 13, 2025

From Ask Clint: real questions from a Canadian public finance forum, answered by Clint Cole. Names are changed. This is general information, not advice for your situation, and rules and dollar figures may have changed since Clint answered. Terms

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