Capital Expenditures and Non-Capital Loss

fixed assets: That loss cannot be the result of capital expenditures to buy or maintain fixed assets such as land, buildings and equipment, according to Globe and Mail. Then, the business can decide on the best time to use the loss. That is, expenses exceed income. Non-capital losses can be used to offset income over a broad swath of time – they can be carried back as long as three years, or carried forward up to 20 years. Mr. The entrepreneur can carry the non-capital loss back to recover income tax already paid, or carry it forward to offset an anticipated tax bill in the future. (www.immigrantscanada.com). As reported in the news.