[Verse 1] When your company shows a loss this year Don't let those red numbers disappear Non-capital losses can travel through time Twenty years forward, that's the timeline Three years backward if you need relief Carry those losses to find tax relief [Chorus] Twenty forward, three back, that's the rule to know Non-capital losses, watch them flow Seven years for capital, but only ahead Restricted business losses, different rules instead Carry forward, carry back Keep your losses on the right track [Verse 2] Capital losses have their own special way Seven years forward, no backward play Against capital gains they must align Can't offset business income, that's by design When corporations change their control Loss restrictions take their toll [Chorus] Twenty forward, three back, that's the rule to know Non-capital losses, watch them flow Seven years for capital, but only ahead Restricted business losses, different rules instead Carry forward, carry back Keep your losses on the right track [Bridge] Farm losses get ten years to grow Restricted business losses, same way they go Acquisition of control can stop the ride Continuity tests must be applied Same business or similar line To keep those loss carryovers in time [Verse 3] Year of loss plus twenty more That's how long non-capital can soar Use them first before they expire FIFO method, that's what tax laws require Document well and track each year Loss utilization must be clear [Chorus] Twenty forward, three back, that's the rule to know Non-capital losses, watch them flow Seven years for capital, but only ahead Restricted business losses, different rules instead Carry forward, carry back Keep your losses on the right track [Outro] Time limits matter, don't let them fade Use your losses before they're delayed Corporate changes can restrict your claim But proper planning keeps you in the game
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