ACTG 4710 Chapter Notes - Chapter 7: Dispositio, Treasury Stock, Capital Loss

• School: York University
• Department: Accounting
• Course: ACTG 4710
• Professor: Beppino Pasquali

Document Summary

Under current rules, 50% of capital gains are included in income as taxable capital gains. Can be offset by allowable capital losses. Subdivision c of division b deals with capital gains: applicable sections 38-55. Terminology can be looked at in terms of full 100% value vs. taxable 50% value after inclusion rate applied: Taxable capital gain (tcg) or allowable capital loss (acl) Capital gain: amount by which proceeds of disposition exceed adjusted cost base (acb) and any disposition costs on sale of capital property. Capital property: any depreciable property that must be acquired and used to provide long-term benefit or enduring benefits and upon disposition, would result in a capital gain or loss. P(cid:396)ope(cid:396)t(cid:455) (cid:455)ou pu(cid:396)(cid:272)hase (cid:271)ut do(cid:374)"t pla(cid:374) to sell, (cid:271)ut i(cid:374)stead, pla(cid:374) to use. Defi(cid:374)itio(cid:374) does(cid:374)"t (cid:396)e(cid:395)ui(cid:396)e that it (cid:271)e held fo(cid:396) lo(cid:374)g-term or that it must provide benefit.