AFM202 Chapter Notes - Chapter 4: Net Income, Foula, Capital Loss
Document Summary
Income from business or property is considered together with other sources of income (such as employment income) when computing ta(cid:454)pa(cid:455)e(cid:396)"s (cid:374)et i(cid:374)(cid:272)o(cid:373)e. Losses from business and property will be netted against income from other sources. Can be carried forward 20 years: can also be carried back, which will result taxpayer receiving refund from government (if there is taxable income in past) Generally better to carry back as far as possible so you receive money now: thus, best to claim maximum cca and all deductions to get most non-capital loss possible. Taxable income is after additional deductions (such as loss carryovers) which are subtracted from net income to obtain taxable income. When taxpayer disposes capital property, capital gain/loss will likely result. Any property that if disposed of for a gain or loss would result in capital gain or loss (ex. If taxpayer sells capital asset for more than its adjusted cost base (acb), capital gain will result.