COMMERCE 4SB3 Chapter Notes - Chapter 7: Put Option, Call Option, Savings Account
6 Dec 2017
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Exemption or reserve: pertaining to principal residence (permanent exemption from tax) and reserve for amounts due in the year (tax deferral) There is a difference between inventory and capital asset. Inventory is not subject to capital gain rules. Capital losses can never be offset against any capital gains or any other sources of revenue. Losses may be claimed but only against gainson lpp. Gains on disposition must be included in income. Dispositions: any transaction entitling taxpayer to proceeds of disposition. By way of gift during the lifetime of a taxpayer. When taxpayer ceases to be a resident of canada. Allowable capital loss only deductible against taxable capital gain, and taxable tax gains from lpp, to the extent needed to bring those gains to zero. Depreciable capital property (cca eligible property) can generate capital gain but not capital loss. Carryover of excess losses : carried back 3 years & carried forward indefinitely.
