,CANADA ,CU/OMS                       #A
& ,REV5UE ,AG5CY

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,NUMB] ,,IT-#CHA;,R#C
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,DATE3 ,FEBRU>Y #AD1 #AIIG
,REF];E3 ,SUBSEC;NS #AJD7#BA71 7#BA.B7 &
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  7#E.C71 7#F71 7#G.A71 7#AB71 7#AC71
  7#AC.A71 7#AC.B71 7#AD71 7#AH7 & 7#BD7
  & #AJG7#D72 ! DEF9I;NS ( 8A3UMULAT+
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  8PRE-#AIGB SP\SAL TRU/10 8PREF]R$
  B5EFICI>Y0 & 8TE/A;T>Y TRU/0 9
  SUBSEC;N #AJH7#A7 &! DEF9I;N (
  8P]SONAL TRU/0 9 SUBSEC;N #BDH7#A72 &
  P>AGRAPHS #EC7#B77H7 & #ABB7#B77D77
                                      #A
             ,,IT-#CHA;,R#C          A#A
  ,9T]PRET,N BULLET9S 7,,IT'S7 PROVIDE
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9COME TAX LAW4 ,DUE 6_! TE*NICAL NATURE1
,,IT'S >E US$ PRIM>ILY 0DE"P;TAL /AFF1
TAX SPECIALI/S1 & O!R 9DIVIDUALS :O H AN
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A LESS TE*NICAL EXPLAN,N (! LAW1 !
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GUIDES & PAMPHLETS4
  ,:ILE ! ,,IT'S D N H ! =CE ( LAW1 !Y C
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,,IT HAS N YET BE5 REVIS$ 6REFLECT
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9 A PREVI\S 9T]PRET,N &! *ANGE IS
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             ,,IT-#CHA;,R#C          B#A
E6ECTIVE = ALL FUTURE ASSESS;TS &
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,NEWS4
  ,IF Y H ANY -;TS REG>D+ MATT]S 4CUSS$
9 ? ,,IT1 PL1SE S5D !M TO3

  ,DIRECTOR1 ,BUSI;S & ,PUBLIC,NS
    ,DIVI.N
  ,9COME ,TAX ,RUL+S ,DIRECTORATE
  ,POLICY & ,LEGISL,N ,BRAN*
  ,REV5UE ,CANADA
  ,OTTAWA ,,ON
  ,K#A;,A #J;,L#E

  ,9T]PRET,N BULLET9S C 2 F.D ON !
,REV5UE ,CANADA ,9T]NET SITE AT3
_+WWW.RC.GC.CA_:

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                 ,3T5TS              C#A
    
,APPLIC,N
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                                      #D
               ,APPLIC,N             D#A
    
  ,? BULLET9 C.ELS & REPLACES ,9T]PRET,N
,BULLET9 ,,IT-#CHA;,R#B DAT$ ,NOVEMB]
#BI1 #AIIA4

                ,SUMM>Y
    
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= XS 9COME 4TRIBU;NS & ALLOC,NS
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Z ! BACKGR.D =! MA9 TOPICS (! BULLET91 :
>E
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             ,,IT-#CHA;,R#C           #B
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             ,,IT-#CHA;,R#C          A#B
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? BULLET94

          ,4CUS.N & ,9T]PRET,N
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             ,,IT-#CHA;,R#C          B#B
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                                      #H
             ,,IT-#CHA;,R#C          C#B
  7,S* O!R B5EFITS >E 9CLUD$ 9 !
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  A B5EFICI>Y'S 9COME "U A SUBSEC;N
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    &
                                      #I
             ,,IT-#CHA;,R#C          D#B
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  9 SUBSEC;N #AJD7#F7 DOES N APPLY 6X
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  P>AGRAPHS #AA "? #AF 2L4 ,AL1 IF A
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             ,,IT-#CHA;,R#C          E#B
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        ,CAPITAL ,GA9S (A ,TRU/
    
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                                     #AA
             ,,IT-#CHA;,R#C          F#B
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  SUBSEC;N #AJD7#AC7 7SEE P>AGRAPH #A7A7
  ABV74 ,? CD O3UR1 = EXAMPLE1 ": ! T]MS
  (
--------------------------------------#C
  ! TRU/ ALL[ = AN 5CROA*;T ON ! CAPITAL
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  "P ( TRU/ 9COME "U TRU/ LAW1 X DOES
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  7Z DEF9$ 9 SUBSEC;N #AJH7#A7 (! ,9COME
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  PREF]R$ B5EFICI>Y 0M1NS (A SUBSEC;N
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                                     #AB
             ,,IT-#CHA;,R#C          A#C
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       ,FL[-"? ( ,TAXA# ,CAPITAL
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  B5EFICI>IES RESID5T 9 ,CANADA &1 IF !
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             ,,IT-#CHA;,R#C          B#C
  NET TAXA# CAPITAL GA9S APPLIES =
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  LOSSES F O!R YE>S : ! B5EFICI>Y MAY
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  N = PURPOSES (A CAPITAL GA9S DEDUC;N 9
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             ,,IT-#CHA;,R#C          C#C
  PURPOSE1 SUBSEC;N #AJD7#BA.C7 PROVIDES
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  ! TOTAL (
  7A7 XS ALL[A# CAPITAL LOSSES =! YE>1 &
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  ,Z 9DICAT$ 9 P>AGRAPH #AH 2L1 ! AM.T (
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  SUBSEC;N #AJD7#BA7 IS REDUC$ 0ANY AM.T
  DESIGNAT$ 6! B5EFICI>Y =! YE> "U
  SUBSEC;N #AJD7#AC.B74







                                     #AE
        ,CAPITAL ,GA9S ,DEDUC;N      D#C
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  P>AGRAPH #H 2L47 ,A SUBSEC;N
  #AJD7#BA.B7 DESIGN,N C O3UR ONLY IF !
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             ,,IT-#CHA;,R#C          E#C
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    .GA9S =! YE>
  
    .M9US
  
    ALL ! TRU/'S SUBSEC;N #AJD7#AC.B7
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             ,,IT-#CHA;,R#C          F#C
  CAPITAL GA9 (! B5EFICI>Y F A 4POSI;N
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  APPLI$74 ,! B5EFICI>Y'S DEEM$ TAXA#
  CAPITAL GA9 O3URS 9 ! B5EFICI>Y'S
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  #AJD7#BA.B7 =MULAS APPLIES ONLY =
  PURPOSES (! B5EFICI>Y'S CLAIM+ A SEC;N
  #AAJ.F CAPITAL GA9S DEDUC;N4 ,X IS
  IMPORTANT 6NOTE T ! B5EFICI>Y M/ /
  MEET ALL (! REQUIRE;TS ( SEC;N #AAJ.F
  9 ORD] 6CLAIM A CAPITAL GA9S DEDUC;N4
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  EXEMP;N 9 PRIOR YE>S WD N 2 A# 6USE A
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  ANY FUR!R CAPITAL GA9S DEDUC;N4
--------------------------------------#D
#H4 ,! AM.T (A P]SONAL TRU/'S 8ELIGI#
  TAXA# CAPITAL GA9S0 =A "PICUL> TAX,N
                                     #AH
             ,,IT-#CHA;,R#C          A#D
  YE> IS DEF9$ 9 SUBSEC;N #AJH7#A7 Z !
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  7A7 ! TRU/'S 8ANNUAL GA9S LIMIT0 =!
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    6B5EFICI>IES "U SUBSEC;N #AJD7#BA.B7
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   ,TAX,N ( ,TRU/ ON ,TAXA# ,CAPITAL
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  POR;N (! TAXA# CAPITAL GA91 NET AF
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                                     #AI
             ,,IT-#CHA;,R#C          B#D
  4TRIBU;N Z S* 9 A3ORD.E )! T]MS (!
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            ,CAPITAL ,LOSSES
    
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  #AJD7#BA74 ,H["E1 IF ! TRU/'S ALL[A#
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  --MAY N 2 DESIGNAT$ 6B5EFICI>IES =!
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  ,9/1D1 S* NET ALL[A# CAPITAL LOSS IS
  9CLUD$ 9 ! TRU/'S 8NET CAPITAL LOSS0
  =! YE>4 ,A TRU/'S NET CAPITAL LOSS =A
  "PICUL> YE>                        #BJ
             ,,IT-#CHA;,R#C          C#D
  --MAY 2 APPLI$ AG/ XS TAXA# CAPITAL
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  ,IF A TRU/'S NET CAPITAL LOSS IS C>RI$
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             ,,IT-#CHA;,R#C          D#D
    DESIGNAT$ 6! B5EFICI>IES "U SUBSEC;N
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  --,FUR!RMORE1 IF ! TRU/ IS A P]SONAL
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             ,,IT-#CHA;,R#C          E#D
  DEDUCT "U P>AGRAPH #AJD7#F77B7 ! AM.T
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  P>AGRAPH #AJD7#D77A7 MAY N DEDUCT "U
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                                     #BC
             ,,IT-#CHA;,R#C          F#D
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  T RESULT F DEEM$ 4POSI;NS ( TRU/
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  8A3UMULAT+ 9COME0 =! YE>4 ,Z A RESULT1
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             ,,IT-#CHA;,R#C          G#D
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  ,JULY #AI1 #AIIE3
--------------------------------------#E
  --,! TRU/ W N 2 ALL[$ 6DEDUCT =! YE>
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             ,,IT-#CHA;,R#C          A#E
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             ,,IT-#CHA;,R#C          B#E
  ! SP\SE DIES1 SUBJECT 6C]TA9 LIMIT,NS1
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          ,ANTI-AVOID.E ,RULE
    
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             ,,IT-#CHA;,R#C          C#E
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             ,,IT-#CHA;,R#C          D#E
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             ,,IT-#CHA;,R#C          E#E
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             ,,IT-#CHA;,R#C          F#E
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  9COME W N 2 SUBJECT 6TAX 9
--------------------------------------#F
  ! H&S (A B5EFICI>Y :5 T AM.T1 NET AF
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             ,,IT-#CHA;,R#C          A#F
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--------------------------------------#G
          ,EXPLAN,N ( ,*ANGES
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9T]PRET,NS4

                                     #CB
           ,R1SONS =! ,REVI.N        A#G
    
  ,? BULLET9 HAS BE5 REVIS$ 2C ( AM5D;TS
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      ,LEGISLATIVE & ,O!R ,*ANGES
    
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             ,,IT-#CHA;,R#C          B#G
*ANGES 7 MADE Z A 3SEQU;E (! ELIM9,N (!
4#AJJ1JJJ CAPITAL GA9S EXEMP;N 7IN SEC;N
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,2C ! 4#EJJ1JJJ CAPITAL GA9S EXEMP;N 9
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    --WAS N ELIM9AT$ 9 SEC;N #AAJ.F1 &
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      : IS N A P]SONAL TRU/1
! AM5D;T 6SUBSEC;N #AJD7#BA.B7 AL N>R[$
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             ,,IT-#CHA;,R#C          C#G
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