RSM324H1 Chapter 10: CHAPTER 10-2
22 Feb 2017
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Chapter 10 individuals: determination of taxable income and taxes payable. A non-capital loss that was created by an abil can be carried forward for only 10 years. If unused after the 10-year carry-forward period, that unused loss is reclassified as a net capital loss and can be carried forward indefinitely to be used against future capital gains. Farm losses and restricted farm losses: farm losses concern taxpayers whose chief sources of income is farming or fishing. Created in the same way as the non-capital losses. Can be carried back 3 years and forward 20 years: restricted farm losses are losses from farming where farming is not the primary source of income of the taxpayer. Annual deductible loss can be no more than ,500 plus of the next ,000 (i. e. , ,500 annually) Unused losses can be carried back 3 years and forward 20 years but can only be deducted to the extent that farming income was earned in those years.
