At the STEP Canada 2023 Round Table, in question 2, the CRA addressed a hypothetical question about the executors of an estate finding evidence of a capital loss realized years before that was not claimed. The CRA agreed that the loss could give rise to a net capital loss in the year (the net loss after subtracting gains reported in the year). If the year in question was more than 10 years past, then it would not be possible to re-open the year. The net capital loss, however, could be carried forward to a year that was not more than 10 years past and either claimed in a relief application under subsection 152(4.2) of the Income Tax Act (Canada) for a year outside the normal reassessment period or claimed in an amended return for a year within the normal reassessment period.
