Business Administration - Financial Planning RFC122 Chapter Notes - Chapter 6: Capital Loss, Passive Income, Crystallization
11 Dec 2016
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Capital gains - is property that will be sold for gains or loss. *** if you keep buying and selling such as property then it is considered business income *** You can offset capital gain with capital loss. Capital loss - you cannot offset loss with employment income. Buy stocks ,000 plus commission expense at = ,010 = acb adjusted cost base. Sell it for 2,000 = proceed and commission expense = ,990 = net proceed. 1,990 - 1,010 = +980 which is a capital gain and only 50% of taxable. *** capital gain is not on any t4/t3, you must keep track of it yourself *** Settlement = t + 3 (trade plus 3 days on the end of the 3rd day) Capital loss = abc is greater than net proceed. Allowable capital loss - one half of a capital loss = net capital loss.
