COMM 353 Lecture Notes - Lecture 75: Hectare, Saltspring Island, Tax Avoidance
Document Summary
8 capital gains and capital losses (pages 373--383, 386--390, 573-574, 576-577) Capital gains and losses arise on the disposition of assets. Gain/loss on disposition of property is calculated as: (a) proceeds of disposition. Proceeds of disposition [ita 54] value of consideration received. Essentially historical cost including invoice cost, delivery and setup charges, non- refundable provincial and federal taxes. Ita 53 specifies some adjustment to the cost base. Recall: capital losses on depreciable property are deemed to be nil. Taxable portion of capital gains and allowable portion of capital losses has changed over the years: Prior to 1972 capital gains were not taxed in canada. Oct. 18, 2000 to present (listed in the notes to ita 38) Impact on net income for tax purposes (nitp) Recall: subdivision c income = taxable capital gains - allowable capital losses. Non-capital losses back 3 years, forward 20 years. Capital losses back 3 years, forward indefinitely.
