AFM363 Lecture Notes - Lecture 5: Capital Loss, Weighted Arithmetic Mean

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM363
• Professor: Dan Rogozynski

Document Summary

Can not claim capital loss on depreciable capital property. Proceeds of disposition (pod) - adjusted cost base (acb) - costs of disposition = capital gain or capital loss. Personal use property: gains are taxable, can not deduct a capital loss, proceeds and acb are always at least ,000, also applies for listed personal property. Lpp has a special investment feature: collection or acquiring for a chance of profit, losses can only offset a capital gain on llp, carryback 3 years or carry forward 7 years, deducted under division b. Superficial loss: capital loss is realized and affiliated persons purchases identical within 30 days of disposal (forward or back) Superficial loss is added to acb of the property to the person who acquired the property: taxpayer and spouse treated as one unit, can not claim a loss when nothing change economically. Individual in the year of death: must calculate final tax owing.