RSM324H1 Chapter Notes - Chapter 8: Investment, Ordinary Income, Weighted Arithmetic Mean
Document Summary
Chapter 8 gains and losses on the. A capital gain (or capital loss) is the gain (or loss) realized on the disposition of capital property. For a property to be classified as capital property, it must have been acquired and used for the purpose of providing the owner with a long-term or enduring benefit. Benefit refers to both direct and indirect benefits achieved from the use of the property. Property acquired for the purpose of resale at a profit is classified as inventory. Its disposition results in business income or a business loss. Property acquired for the purpose of providing the owner with a long-term or enduring benefit is classified as capital property. Its disposition results in a capital gain or loss. The profit on capital property arises from the mere enhancement of the capital value of an asset that was acquired for some other purpose.
