Allowable Business Investment Loss ABIL

Use this chart to determine your allowable business investment lost (ABIL) and, if applicable, your business investment loss reduction. Claim the deduction for the ABIL on line 21700 of your income tax and benefit return. Enter the gross business investment loss on line 21698 of your return for Period 1 and line 21699 for Period 2.

Keep this document for your records. Do not attach it to your return.


Line 21700 – Allowable business investment loss
                   
Step 1 – Calculate your business investment loss for 2024
Business investment loss in Period 1 (enter this amount on line 21698 of your return)  A 
Business investment loss in Period 2 (enter this amount on line 21699 of your return) +  B 
Line A plus line B Business investment loss for the year =  C 
 
Step 2 – Reduce your business investment loss, if applicable
If you claimed a capital gains deduction in a previous year, you have to reduce your business investment loss. To determine the reduction, complete the calculation on the next page. If you did not claim a capital gains deduction in prior years, enter the amount from line C on line G and continue at line H.
 
Enter your business investment loss reduction for period 1 from line 15 of next page -  D 
Line C minus line D =  E 
Enter your business investment loss reduction for period 2 from line 17 of next page -  F 
Line E minus line F =  G 
 
Step 3 – Calculate your allowable business investment loss
Inclusion rate for 2024 x  H 
Line G multiplied by the percentage on line H
Enter this amount on line 21700 of your return.		 =  I 
 
Step 4 – Attach documentation
Attach a note to your income tax and benefit return that states:
  • the name of the small business corporation
  • the number and class of shares, or the type of debt you disposed of
  • the insolvency, bankruptcy, or wind-up date
  • the date you bought the shares, or the date you acquired the debt
  • the amount of the proceeds of disposition
  • the adjusted cost base of the shares or debt
  • the outlays and expenses on the disposition
  • the amount of the loss
 
 
2

Calculating your business investment loss reduction
                         
The reduction calculated below is considered to be a capital loss for the year.
 

Capital gains deductions claimed from 1985 to 2023
For 1985 to 1987, total of the amounts from line 254 of your returns for these years x 2  1 
For 1988 and 1989 (other than for eligible capital property gains), total of the amounts from line 254 of your returns minus any amounts reported on line 543 and 544 on Schedule 3; if negative enter "0" (a) x 3/2 +  2 
For 1988 and 1989 for eligible capital property gains, total of the amounts from line 254 of your returns minus the amount calculated at line (a) above; not the exceed lines 543 and 544 on Schedule3 x 4/3 +  3 
For 1990 to 1999, total of the amounts from line 254 of your returns for these years x 4/3 +  4 
For 2000, IR
Amounts from line 254 of your return x 1/IR* +  5 
For 2001 to 2018, total of the amounts from line 254 of your returns for these years x 2 +  6a
For 2019 to 2023, total of the amounts from line 25400 of your returns for these years x 2 +  6b
Total of lines 1 to 6 Total of all capital gains deductions claimed from 1985 to 2023 =  7 
 
* This inclusion rate (IR) is from line 16 in Part 4 of Schedule 3 for 2000, or from your notice of assessment or latest notice of reassessment for 2000.
 

Other business investment loss reductions from 1986 to 2023
Total of the amounts reported on line 535 of Schedule 3 of your 1986 to 1994 returns  8 
Total of the amounts reported on line 034 of Schedule 3 of your 1994 to 1996 returns +  9 
Total of the amounts reported on line 178 of Schedule 3 of your 1997 to 1999 returns +  10 
Total of the amounts reported on lines 293, 178 and 5668 of Schedule 3 of your 2000 return +  11 
Total of the amounts reported on line 178 of Schedule 3 of your 2001 to 2018 returns +  12a
Total of the amounts reported on line 17800 of Schedule 3 of your 2019 to 2023 returns +  12b
Total of lines 8 to 12 = -  13 
Line 7 minus line 13 Total of all other business investment loss reductions from 1986 to 2023 =  14 
 

Business investment loss reduction
Enter whichever is less: amount from line 14 or line A in Step 1.
Enter this amount on line D in Step 2 and on line 17799 of Schedule 3.		 Business investment loss reduction for period 1 -  15 
Line 14 minus line 15 =  16 
Enter whichever is less: amount from line 16 or line B in Step 1.
Enter this amount on line F in Step 2 and on line 17800 of Schedule 3.		 Business investment loss reduction for period 2  17