BU357 Lecture Notes - Tax Deferral, Capital Asset, Tax Preparation In The United States
Document Summary
1chapter 7 and 8 - capital gains: an introduction (div b, subdiv c , s38- Prior to 1972 capital gains were not taxed in canada and capital losses could not be claimed. The portion (inclusion rate) of a capital gain or loss which is taxable/deductible has changed since then. [calendar 1972 to 1987 => 50%; calendar 1988 to 1989 => 66. 67%; calendar 1990 to feb. 27, 2000 => 75%; feb 28 to oct 17, 2000 => 66. 67%; oct 18, 2000 to present => 50%] Since 1972, each disposition of capital property requires a separate calculation of taxable capital gain or allowable capital loss. Section 3(b) requires that allowable capital losses be offset against taxable capital gains, except as discussed below for pup (including lpp) and abils. If the net result of all current year capital dispositions is a taxable capital gain, this amount is included in. Division c to be discussed in chapter 10. )
