Capital Gains and Losses

Budget 2024 introduced the following rules for capital gains:

• 50% inclusion rate for individuals and 2/3 inclusion rate for businesses

• 2/3 inclusion rate for all Canadians

• 2/3 inclusion rate for the first $150,000 gain and 50% after that

• 50% inclusion rate for individuals on the first $250,000 snd 2/3 after that

Exceptions to the new capital gains rules apply to:

• Non-residents

• Bare trusts

• Qualified Disability Trusts

• Co-owners of jointly held property

What is the term for the acquisition amount of a capital property?

What provision deals with allowable capital losses?

• 38(b)

• 3(a)

• 40(1)(b)

• 40(1)(a)

What provision deals with timing of capital losses?

Which provision is the basic charging provision for capital gains?

• 3(b)

• 18(1)(b)

• 38

• 40

Proceeds of

What term is defined as:

(a) any depreciable property of the taxpayer and

(b) any property… any gain or loss from disposition of which would, if the property were disposed of, be a capital gain or a capital loss of the taxpayer?

Can expenses of disposition be deducted from a capital gain?

• Yes

• No

Proceeds from a venture in the nature of trade are:

• Business income

• Capital losses

• Capital gains

• Proceeds of disposition