10 Tax Tips

Accountant Mississauga

Tax Tip #9 Offset capital losses

9. Failure to offset capital gains with capital losses. Remember that some of the capital gains made toward the tail end of the boom market in the late 1990s and in 2000 can be offset by subsequent capital losses resulting from the market swoon. “Those capital losses can be applied against any capital gains. Assuming the losses exceed the gains, the loss could actually carry back up to three years or forward indefinitely,” Mr. McCormack says.
10. Failure to recognize allowable business investment losses (ABIL). Under special circumstances, taxpayers who’ve invested in a small business corporation that has become insolvent or otherwise gone bad may be eligible for tax relief in the form of an ABIL.

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April 7, 2009 - Posted by | Accountant Mississauga |

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