Which losses can be carried back three years or forward for 20 years to offset other income?

Business investment losses are distinct in that they can be carried back to offset other types of income for the previous three years or carried forward for up to 20 years. This provision allows taxpayers to utilize these losses more flexibly, which makes them a valuable tool for managing tax liability.

Non-capital losses, while they can be carried back for three years and forward for 20 years, pertain specifically to losses derived from business activities or employment income. Capital losses, on the other hand, can generally only be applied against capital gains, making them less versatile in terms of offsetting other income. Thus, while capital and non-capital losses have their own specific treatments, the unique nature of business investment losses allows them to have the longest functional carryover period for the purpose of offsetting a variety of income types.

This makes business investment losses the correct answer for the question about which losses can be utilized in that manner over such defined periods.