Capital Gains and Losses
Capital Property
In brief, a capital property is defined as any property other than: 1) real property used in a business, 2) inventory or 3) personal-use property. Note that, the term "property" includes eligible capital property, any other property (except exempt property), and any rights under a contract that relates to it, such as an option.
Sale of Capital Property
When you sell or are considered to have sold a capital property for less than its ACB plus the outlays and expenses incurred to earn the income it produces, you have a capital loss. In general, a capital loss is applied against any capital gains you realized in the current year or in any of the three previous years.
Comments