Can I use capital loss carryover to previous years?

Forum|Forum|1 year ago
March 6, 2025
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Hi! I lived in USA on H1b visa for long time. I'm carrying capital losses from year 2022 and used some of it in 2023. However, I still have substantial amount (about $15000) left. I was not present in USA in 2024 but had capital investment (basically stocks). So for USA, I'll file taxes as non resident alien for year 2024. In August 2024 I moved to Canada and became Canadian permanent Resident. So, I'll be filing my taxes as Candian resident for part of 2024. I learnt that Candian govenment don't allow carryover of capital loss from USA. From now I'll be paying taxes on all capital gains (except dividends) to Canadian government. Here are my questions- A. Can I carryback capital losses to previous years in USA? If I can't carryback capital losses of USA, What do I do with it? B. I'm still maintaining US address with investment firms in USA. Should I change my address to foreign address (Canadian Address)?

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Best answer by AmyC

1. No. Losses must be carried forward, indefinitely. See Topic no. 409, Capital gains and losses. This is a use it or lose it situation for you. If you decide to move everything to Canada, you will not have future gains to offset the loss.

2. If you want to use your US address and claim future gains against the loss, you can. Your investment address is up to you.