,canada ,cu/oms                       #a
& ,rev5ue ,ag5cy

          ,9t]pret,n ,bullet9
    
,subject3 ,9come ,tax ,act
  ,=eign ,tax ,cr$it--,=eign-,s\rce
  ,capital ,ga9s & ,losses
,numb]3 ,,it-#cie;,r#b
,date3 ,augu/ #ba1 #bjjb
,ref];e3 ,subsec;n #abf7#a7 7al sec;ns
  #c & #ci1 subsec;n #abf7#b.ba71 !
  def9i;ns ( 8non-busi;s-9come tax0 &
  8tax-exempt 9come0 9 subsec;n
  #abf7#g71 & p>agraphs #aaa7#a77b7 &
  #abh.a7#d77b77

  ,at ! ,canada ,cu/oms & ,rev5ue ,ag5cy
7,,ccra71 we issue 9come tax 9t]pret,n
bullet9s 7,,it's7 9 ord] 6provide
te*nical 9t]pret,ns & posi;ns reg>d+
c]ta9 provi.ns 3ta9$ 9 9come tax law4
,due 6_! te*nical nature1 ,,it's >e us$
prim>ily 0\r /aff1 tax speciali/s1 & o!r
9dividuals :o h an 9t]e/ 9 tax        #a
             ,,it-#cie;,r#b          a#a
matt]s4 ,= ^? r1d]s :o pref] a less
te*nical explan,n (! law1 we (f] o!r
public,ns1 s* z tax guides & pamphlets4
  ,:ile ! -;ts 9 a "picul> p>agraph 9 an
,,it may relate 6provi.ns (! law 9 =ce
at ! "t !y 7 made1 s* -;ts >e n a
sub/itute =! law4 ,! r1d] %d1 "!=e1
3sid] s* -;ts 9 li<t (! relevant
provi.ns (! law 9 =ce =! "picul> tax,n
ye> 2+ 3sid]$1 tak+ 96a3.t ! e6ect ( any
relevant am5d;ts 6^? provi.ns or
relevant c\rt deci.ns o3urr+ af ! date
on : ! -;ts 7 made4
  ,subject 6! abv1 an 9t]pret,n or
posi;n 3ta9$ 9 an ,,it g5],y applies z
(! date on : x 0 publi%$1 un.s o!rwise
specifi$4 ,if "! is a subsequ5t *ange 9
t 9t]pret,n or posi;n &! *ange is
b5eficial 6taxpay]s1 x is usu,y e6ective
= future assess;ts & reassess;ts4 ,if1
on ! o!r h&1 ! *ange is n fav\ra#
6taxpay]s1 x w norm,y 2 e6ective =!
curr5t & subsequ5t tax,n ye>s or =
                                      #b
             ,,it-#cie;,r#b          b#a
transac;ns 5t]$ 96af ! date on : ! *ange
is publi%$4
  ,if y h any -;ts reg>d+ matt]s 4cuss$
9 an ,,it1 pl1se s5d !m to3

  ,manag]1 ,te*nical ,public,ns &
    ,projects ,sec;n
  ,9come ,tax ,rul+s ,directorate
  ,policy & ,legisl,n ,bran*
  ,canada ,cu/oms & ,rev5ue ,ag5cy
  ,ottawa ,,on ,k#a;,a #j;,l#e
  
  ,mo/ ( \r public,ns >e availa# on \r
,web site at3 _+www.ccra.gc.ca_:

  ,? v].n is only availa# electronic,y4

    





                                      #c
                 ,3t5ts              c#a
    
,applic,n
,summ>y
,4cus.n & ,9t]pret,n
  ,=eign ,tax ,cr$it ,=mula 7p>agraphs
    #a-b7
  ,loc,n (a ,capital ,ga9 or ,capital
    ,loss 7p>agraphs #c-d7
  ,basic ,tr1t;t ( ,=eign-,s\rce
    ,capital ,ga9s & ,losses 7p>agraphs
    #e-f7
  ,applic,n ( ,all[a# ,capital ,losses
    7p>agraphs #g-h7
  ,tax-,exempt ,9come 7p>agraph #i7
,explan,n ( ,*anges

               ,applic,n
    
  ,? bullet9 c.els & replaces ,9t]pret,n
,bullet9 ,,it-#cie;,r dat$ ,july #ca1
#aiia4


                                      #d
                ,summ>y              d#a
    
  ,sec;n #abf p]mits a taxpay] resid5t 9
,canada at any "t 9 a tax,n ye> 6claim1
ag/ ,canadian tax o!rwise paya# =! ye>1
a =eign tax cr$it 9 respect ( 9come or
pr(its taxes pd =! ye> 6a =eign c.try4
,! taxpay] m/ make sep>ate =eign tax
cr$it calcul,ns = =eign 8busi;s-9come
tax0 & 8non-busi;s-9come tax04
  ,subsec;n #abf7#a7 sets \ ! rules =
claim+ a 8non-busi;s-9come tax0 =eign
tax cr$it4 ,? cr$it is basic,y ! less]
(! actual non-busi;s-9come taxes pd 6!
=eign c.try &! por;n ( ,canadian tax
o!rwise paya# t relates 6! non-busi;s
9come f s\rces 9 t c.try4
  ,=eign-s\rce taxa# capital ga9s &
all[a# capital losses >e tak5 96a3.t 9
calculat+ a 8non-busi;s-9come tax0 =eign
tax cr$it4 ,": m ?an "o =eign c.try is
9volv$1 a sep>ate =eign tax cr$it m/ 2
calculat$ = ea* c.try4 ,"!=e1 ! taxpay]
m/ det]m9e ! "picul> c.try 6: ea*
                                      #e
             ,,it-#cie;,r#b          e#a
capital ga9 or capital loss %d 2
allocat$4
  ,al1 ! alloc,n ( all[a# capital losses
am;g c.tries is limit$ 0! am.t ( s*
losses t >e deducti# 9 calculat+ sec;n
#c 9come4
--------------------------------------#b
          ,4cus.n & ,9t]pret,n
    
       ,=eign ,tax ,cr$it ,=mula
            7p>agraphs #a-b7
    
#a4 ,": a resid5t ( ,canada has non-
  busi;s 9come f a s\rce or s\rces 9 a
  =eign c.try & pays 9come tax on t
  9come 6t c.try =a "picul> tax,n ye>1
  subsec;n #abf7#a7 p]mits ! taxpay]
  6claim1 ag/ ,canadian tax o!rwise
  paya# = t ye>1 a =eign tax cr$it 9
  respect (! non-busi;s-9come tax s pd
  6! =eign c.try4 ,subsec;n #abf7#a7
  requires t a sep>ate =eign tax cr$it 2
  calculat$ = ea* =eign c.try 6: non-
  busi;s-9come tax is pd &1 9 g5]al   #f
             ,,it-#cie;,r#b          a#b
  t]ms1 limits ! am.t ( ea* cr$it =a
  "picul> tax,n ye> 6! less] (
  7a7 ! am.t ( actual non-busi;s-9come
    tax pd =! ye> 6! "picul> =eign
    c.try1 &
  7b7 ! por;n ( ,canadian tax o!rwise
    paya# =! ye> t relates 6! non-busi;s
    9come =! ye> f s\rces 9 t c.try1 :
    is det]m9$ z foll[s3
  
    ,,fnbi divis$ 0,,wi multipli$
      0,,ctop
    
    ,! v>ia#s 9 ! abv =mula >e z foll[s3
    
    ,,fnbi is ! .num]ator 9 ! abv
      frac;n4 ,,fnbi is ! total (!
      taxpay]'s =eign non-busi;s 9come
      =! ye> f s\rces 9 t c.try1 z
      calculat$ 9 a3ord.e ) subp>agraph
      #abf7#a77b77;i74
    ,,wi is ! .denom9ator 9 ! abv
      frac;n4 ,x ess5ti,y repres5ts !
      taxpay]'s _wwide 9come =!       #g
             ,,it-#cie;,r#b          b#b
      ye>1 subject 6! adju/;ts 3ta9$ 9
      subp>agraph #abf7#a77b77;ii74
    ,,ctop is ! ,canadian tax o!rwise
      paya# =! ye> z calculat$ "u
      p>agraph 7a7 (! subsec;n #abf7#g7
      def9i;n (! t]m 8tax =! ye> o!rwise
      paya# "u ? ,"p04
    
,example
  ,a resid5t ( ,canada has _w 9come =!
  ye> ( 4#ej1jjj4 ,( t total1 4#cj1jjj
  is ! =eign non-busi;s 9come =a "picul>
  =eign c.try &! taxpay] pays 4#f1ejj
  non-busi;s-9come tax 6t c.try4 ,!
  taxpay]'s ,canadian tax o!rwise paya#
  ( 4#aj1jjj 7in ! calcul,n ( : ! full
  4#ej1jjj ( _w 9come is tak5 96a3.t7 is
  reduc$ 64#d1jjj 0a =eign tax cr$it (
  4#f1jjj1 2+ ! less] (
    --! 4#f1ejj non-busi;s-9come tax pd
      6! =eign c.try1 &
    --! am.t det]m9$ 0! =mula
      ,,fnbi divid$ 0,,wi multipli$
      0,,ctop equals 4#cj1jjj         #h
             ,,it-#cie;,r#b          c#b
      divid$ 04#ej1jjj multipli$
      04#aj1jjj equals 4#f1jjj
    
#b4 ,=a m -plete 4cus.n (! subsec;n
  #abf7#a7 =eign tax cr$it &! v>ia#s :
  >e us$ 9 xs calcul,n1 ref];e %d 2 made
  6! curr5t v].n ( ,,it-#bgj1 ,=eign
  ,tax ,cr$it4 ,x %d 2 not$ f t bullet9
  t ! subsec;n #abf7#a7 =eign tax cr$it
  9 respect ( non-busi;s-9come tax pd 6a
  =eign c.try is 5tirely sep>ate f !
  subsec;n #abf7#b7 =eign tax cr$it 9
  respect ( busi;s-9come tax pd 6a =eign
  c.try4 ,s9ce taxa# capital ga9s >e n
  3sid]$ 6be busi;s 9come = ,canadian
  tax,n purposes1 =eign-s\rce taxa#
  capital ga9s & all[a# capital losses w
  a6ect ! calcul,n (! subsec;n #abf7#a7
  7non-busi;s-9come tax7 =eign tax
  cr$it1 z 4cuss$ 9 ! foll[+ p>agraphs4



                                      #i
       ,loc,n (a ,capital ,ga9 or    d#b
       ,capital ,loss 7p>agraphs
                 #c-d7
    
#c4 ,9 det]m9+ ! c.try 6: a taxpay]'s
  capital ga9 or capital loss on a
  4posi;n ( r1l prop]ty 7l& & build+s7
  %d 2 allocat$1 ! major factor 6be
  3sid]$ is ! geographic loc,n (!
  prop]ty4 ,9 ! case ( capital prop]ty
  o!r ?an r1l prop]ty1 ! c.try 6: !
  capital ga9 or capital loss %d 2
  allocat$ is usu,y bas$ on ! geographic
  loc,n at : ! sale or 4posi;n took
  place 7see p>agraph #d1 = example1 9 !
  case ( /ocks & bonds74

  ,if "! has be5 a deem$ 4posi;n (
  prop]ty1 any result+ capital ga9 or
  capital loss is allocat$ 6,canada r
  ?an 6a =eign c.try1 reg>d.s (!
  geographic loc,n (! prop]ty at ! "t (!
  deem$ 4posi;n4 ,= example1 ": a
  taxpay] has c1s$ 6be resid5t 9
  ,canada1 a taxa# capital ga9       #aj
             ,,it-#cie;,r#b          e#b
  result+ f a deem$ 4posi;n ( prop]ty "u
  p>agraph #abh.a7#d77b7 is 3sid]$ 6be
  ,canadian-s\rce 9come1 : "!=e _c 2
  9clud$ 9 ! num]ator ,,fnbi 9 p>agraph
  7b7 = purposes (a =eign tax cr$it "u
  subsec;n #abf7#a74 7,! result+ 8pre-
  de"pure0 ,canadian taxes may1 h["e1 2
  reduc$ 0a =eign tax cr$it1 "u subsec;n
  #abf7#b.ba71 =a por;n ( any 8po/-
  de"pure0 =eign taxes result+ f a
  subsequ5t actual 4posi;n (! prop]ty47

  ,a di6]5t result =a deem$ 4posi;n c
  "s"ts o3ur1 h["e1 0m1ns (a tax tr1ty3

,example
  ,ms4 ;,x emigrat$ on ,janu>y #ca1
  #bjja f ,canada 6! ,unit$ ,/ates4 ,2c
  (! op],n ( p>agraph #abh.a7#d77b7 (
  ,canada's ,9come ,tax ,act 7! 8,act071
  ,ms4 ;,x _h a capital ga9 f a deem$
  4posi;n1 at fair m>ket value on
  ,janu>y #ca1 #bjja1 ( l& %e [n$ 9 !
  ,unit$ ,/ates4 ,us+ p>agraph #g    #aa
             ,,it-#cie;,r#b          f#b
  7in 3junc;n ) p>agraph #a7 ( ,>ticle
  ,,xiii (! ,canada-,unit$ ,/ates ,9come
  ,tax ,3v5;n 7#aihj7 7! 8tr1ty071 ,ms4
  ;,x elect$ 6be tax$ 9 #bjja 0! ,unit$
  ,/ates 7in a3ord.e )! ,u4,s4 ,9t]nal
  ,rev5ue ,code7 on ! capital ga9 a3ru+
  on ! l& up 6,janu>y #ca1 #bjja4 ,"u
  p>agraph #c7a7 ( ,>ticle ,,xxiv (!
  tr1ty1 ! capital ga9 s tax$ 0! ,unit$
  ,/ates 2came a ,u4,s4-s\rce capital
  ga9 = purposes (
--------------------------------------#c
  subp>agraph #b7a77;i7 ( ,>ticle
  ,,xxiv4 ,z a result1 ,ms4 ;,x 9clud$ !
  taxa# capital ga9 t o3urr$ "u !
  ,canadian ,act 9 ! num]ator ,,fnbi =
  #bjja4 ,? all[$ ,ms4 ;,x 6claim a
  subsec;n #abf7#a7 =eign tax cr$it ag/
  h] ,canadian tax o!rwise paya# =!
  #bjja tax,n ye>4 7,on ,decemb] #ae1
  #bjjb1 ,ms4 ;,x1 at t "t a non-resid5t
  ( ,canada1 sold ! l& & pd tax 6!
  ,unit$ ,/ates z a result (! capital
  ga9 a3ru+ f ,febru>y #a1 #bjja     #ab
             ,,it-#cie;,r#b          a#c
  6,decemb] #ae1 #bjjb4 ,? 8po/-de"pure0
  =eign tax did n qualify =a =eign tax
  cr$it "u subsec;n #abf7#b.ba7 (!
  ,canadian ,act z no "p (! ga9 a3ru$
  :ile %e 0 resid5t 9 ,canada47

#d4 ,g5],y1 ! place ": a /ock or bond is
  sold is ! securities or /ock ex*ange 9
  : x is sold1 reg>d.s (! loc,n (!
  issu]'s transf] (fice4 ,": a sale is n
  made "? a securities or /ock ex*ange1
  o!r factors1 s* z ! loc,n or place (
  busi;s (! issu]1 ! issu]'s transf]
  (fice1 ! [n] (! secur;y or ! [n]'s
  sell+ ag5t1 %d 2 3sid]$ 9 e/abli%+ ":
  ! sale is made4

     ,basic ,tr1t;t ( ,=eign-,s\rce
        ,capital ,ga9s & ,losses
            7p>agraphs #e-f7
    
#e4 ,! taxpay] %d 9clude all =eign-s\rce
  taxa# capital ga9s 9 ! calcul,n ( bo?
  ! num]ator1 ,,fnbi1 &!             #ac
             ,,it-#cie;,r#b          b#c
  denom9ator1 ,,wi1 9 p>agraph #a7b74 ,!
  taxpay] %d al subtract1 = purposes (
  calculat+ ^! v>ia#s1 all =eign-s\rce
  all[a# capital losses 6! ext5t t s*
  losses >e deducti# 9 calculat+ !
  taxpay]'s 9come "u sec;n #c (! ,act
  7see p>agraphs #g & #h = specific
  applic,ns ( ? rule74 ,? ,canadian tax
  tr1t;t wd n 2 a6ect$ 0a di6]5t tr1t;t
  "u ! tax law (! "picul> =eign
  jurisdic;n 6: ! capital ga9 or loss is
  allocat$ 0! taxpay]1 e4g41 ": !
  capital ga9 or loss s allocat$1 :e!r
  or n f ! 4posi;n (a capital prop]ty
  us$ 9 ! busi;s (! taxpay] at ! "t ( xs
  4posi;n1 is 3sid]$ 0! =eign jurisdic;n
  6be a ga9 or loss (a busi;s nature4

  ,! abv -;ts >e subject 6! -;ts 9
  p>agraph #i4

  ,al1 any tax 9 ! nature ( an 9come1
  ga9s or pr(its tax t is pd =! ye> 6a
  =eign jurisdic;n 9 respect (a      #ad
             ,,it-#cie;,r#b          c#c
  capital ga9 %d 2 9clud$ 9 ! non-
  busi;s-9come tax pd 6t jurisdic;n 7see
  p>agraph #a7a774
#f4 ,net capital losses claim$ "u
  p>agraph #aaa7#a77b7 9 -put+ !
  taxpay]'s taxa# 9come d n reduce !
  num]ator1 ,,fnbi1 9 p>agraph #a7b71 b
  >e deduct$ 9 calculat+ ! denom9ator1
  ,,wi1 9 p>agraph #a77b774

      ,applic,n ( ,all[a# ,capital
        ,losses 7p>agraphs #g-h7
    
#g4 ,z 9dicat$ 9 p>agraph #a1 a sep>ate
  =eign tax cr$it calcul,n "u subsec;n
  #abf7#a7 m/ 2 made = ea* c.try 6: non-
  busi;s-9come tax is pd4 ,acly1 9 a
  situ,n ": a taxpay] has a taxa#
  capital ga9 allocat$ 6"o =eign c.try &
  an all[a# capital loss allocat$ 6ano!r
  =eign c.try1 ! taxa# capital ga9 is
  9clud$ 9 -put+ ,,fnbi 7! num]ator 9
  p>agraphs #a7b77 =! f/ c.try &! all[a#
  capital loss is subtract$ 9        #ae
             ,,it-#cie;,r#b          d#c
  -put+ ,,fnbi =! second c.try 6! ext5t
  t s* all[a# capital loss is deducti# 9
  -put+ ! taxpay]'s 9come =! ye> "u
  sec;n #c4

,example
  ,assume ! foll[+ 9come details =
  ,corpor,n ;,a3

,transcrib]'s note3
  7,! foll[+ is set-up 9 f\r columns3
  ,column #a3 ,=eign ,c.try ;,b
  ,column #b3 ,=eign ,c.try ;,c
  ,column #c3 ,canada
  ,column #d3 ,total
  
,=eign ,c.try ;,b
  ,taxa# capital ga9s 4#aj1jjj
  ,all[a# capital losses ,,nil
  ,o!r non-busi;s 9come 4#bh1jjj
  ,busi;s 9come 4#ba1jjj
  

                                     #af
             ,,it-#cie;,r#b          e#c
,=eign ,c.try ;,c
  ,taxa# capital ga9s ,,nil
  ,all[a# capital losses 74#ae1jjj7
  ,o!r non-busi;s 9come 4#ba1ejj
  ,busi;s 9come 4#bb1jjj
  
,canada
  ,taxa# capital ga9s 4#b1jjj
  ,all[a# capital losses ,,nil
  ,o!r non-busi;s 9come ,,nil
  ,busi;s 9come 4#bc1jjj
  
,total
  ,taxa# capital ga9s 74#aj1jjj plus
    4#b1jjj7 equals 4#ab1jjj
  ,all[a# capital losses 74#ae1jjj7
  ,o!r non-busi;s 9come 74#bh1jjj plus
    4#ba1ejj7 4#di1ejj
  ,busi;s 9come 74#ba1jjj plus 4#bb1jjj
    plus 4#bc1jjj7 4#ff1jjj
  
  ,! calcul,n ( ,corpor,n ;,a's ,,fnbi =
  ea* =eign c.try is z foll[s3
                                     #ag
             ,,it-#cie;,r#b          f#c
 """"""""""""""" ,=eign """"" ,=eign
 """"""""""""""" ,c.try ;,b   ,c.try ;,c
,taxa# capital
  ga9s """"""""" 4#aj1jjj """""""" ,,nil
,all[a# capital
  losses """"""" ,n/,a """ 74#ab1jjj7 99
,o!r non-busi;s
  9come """""""" 4#bh1jjj """"" 4#ba1ejj
,,fnbi """"""""" 4#ch1jjj """""" 4#i1ejj

  ,! calcul,n ( ,corpor,n ;,a's ,,wi 7:
  is us$ 9 xs =eign tax cr$it calcul,ns
  = bo? =eign c.tries7 is z foll[s3

,taxa# capital ga9s """"""""""" 4#ab1jjj
,all[a# capital losses """ 74#ab1jjj7 99
,o!r non-busi;s 9come """"""""" 4#di1ejj
,busi;s 9come """"""""""""""""" 4#ff1jjj
,,wi """"""""""""""""""""""""" 4#aae1ejj

99 ,! am.t ( all[a# capital losses t is
  subtract$ 9 calculat+ ! abv v>ia#s "u
  subsec;n #abf7#a7 is limit$ 64#ab1jjj4
  ,? is 2c only 4#ab1jjj (!          #ah
             ,,it-#cie;,r#b          g#c
  4#ae1jjj all[a# capital losses 9curr$
  9 ! ye> 0,corpor,n ;,a is deducti# 9
  -put+ xs 9come =! ye> "u sec;n #c (!
  ,act4 ,t is1 ! am.t (! taxpay]'s
  all[a# capital losses =! ye> deducti#
  "u subp>agraph #c7b77;ii7 _c exce$ !
  taxpay]'s 4#ab1jjj taxa# capital ga9s
  =! ye> 9clud$ "u subp>agraph
  #c7b77;i71 2c ! net am.t calculat$ "u
  p>agraph #c7b7 _c 2 less ?an nil4

  ,! abv -;ts >e subject 6! -;ts 9
  p>agraph #i4

#h4 ,! taxpay] may h all[a# capital
  losses = m ?an "o =eign c.try4 ,9 s* a
  situ,n1 ": ! total all[a# capital
  losses = all c.tries 79clud+ ,canada7
  exce$s ! am.t ( s* losses t is
  deducti# 9 -put+ ! taxpay]'s 9come "u
  sec;n #c1 ! taxpay] may allocate !
  =eign-s\rce por;n (!

                                     #ai
             ,,it-#cie;,r#b           #d
  deducti# losses am;g ! =eign c.tries1
  = purposes ( calculat+ ,,fnbi = ea*
  respective c.try1 9 s* a way t3
  7a7 ! am.t ( all[a# capital losses
    allocat$ 6any "picul> =eign c.try
    does n exce$ ! all[a# capital losses
    actu,y 9curr$ 9 t c.try1 &
  7b7 ! a7regate (! ,canadian por;n 7if
    any7 (! all[a# capital losses &!
    v>i\s am.ts allocat$ 6! =eign
    c.tries is equal 6! total am.t (
    all[a# capital losses t is deducti#
    9 calculat+ ! taxpay]'s 9come "u
    sec;n #c (! ,act4
  
,example
  ,assume ! foll[+ 9come details =
  ,corpor,n ;,d3





                                     #bj
             ,,it-#cie;,r#b          a#d
,transcrib]'s note3
  7,! foll[+ is set-up 9 six columns3
  ,column #a3 ,=eign ,c.try ;,e
  ,column #b3 ,=eign ,c.try ;,f
  ,column #c3 ,=eign ,c.try ;,g
  ,column #d3 ,=eign ,total
  ,column #e3 ,canada
  ,column #f3 ,total
  
,=eign ,c.try ;,e
  ,taxa# capital ga9s 4#c1jjj
  ,all[a# capital losses 74#e1jjj7
  ,o!r non-busi;s 9come 4#c1ejj
  ,busi;s 9come 4#a1bjj
  
,=eign ,c.try ;,f
  ,taxa# capital ga9s 4#a1jjj
  ,all[a# capital losses 74#a1ejj7
  ,o!r non-busi;s 9come ,,nil
  ,busi;s 9come 4#b1djj
  


                                     #ba
             ,,it-#cie;,r#b          b#d
,=eign ,c.try ;,g
  ,taxa# capital ga9s 4#b1jjj
  ,all[a# capital losses 74#a1jjj7
  ,o!r non-busi;s 9come 4#d1bjj
  ,busi;s 9come 4#a1fjj
  
,=eign ,total
  ,taxa# capital ga9s 74#c1jjj plus
    4#a1jjj plus 4#b1jjj7 equals 4#f1jjj
  ,all[a# capital losses 774#e1jjj7 plus
    74#a1ejj7 plus 74#a1jjj77 equals
    7#g1ejj7
  ,o!r non-busi;s 9come 74#c1ejj plus
    ,,nil plus 4#d1bjj7 equals 4#g1gjj
  ,busi;s 9come 74#a1bjj plus 4#b1djj
    plus 4#a1fjj7 equals 4#e1bjj
  
,canada
  ,taxa# capital ga9s 4#c1ejj
  ,all[a# capital losses 74#g1jjj7
  ,o!r non-busi;s 9come ,,nil
  ,busi;s 9come 4#a1hjj
  
                                     #bb
             ,,it-#cie;,r#b          c#d
,total
  ,taxa# capital ga9s 74#f1jjj plus
    4#c1ejj7 equals 4#i1ejj
  ,all[a# capital losses 774#g1ejj7 plus
    74#g1jjj7 equals 74#ad1ejj7
  ,o!r non-busi;s 9come 74#g1gjj plus
    ,,nil7 equals 4#g1gjj
  ,busi;s 9come 74#e1bjj plus 4#a1hjj7
    equals 4#g1jjj
  
  ,corpor,n ;,d calculates ,,fnbi = ea*
  =eign c.try z foll[s3

,transcrib]'s note3
  7,! foll[+ is set-up 9 ?ree columns3
  ,column #a3 ,=eign ,c.try ;,e
  ,column #b3 ,=eign ,c.try ;,f
  ,column #c3 ,=eign ,c.try ;,g7
  




                                     #bc
             ,,it-#cie;,r#b          d#d
,=eign ,c.try ;,e
  ,taxa# capital ga9s 4#c1jjj
  ,all[a# capital losses1 z allocat$
    0taxpay] 74#d1jjj7 99
  ,o!r non-busi;s 9come 4#c1ejj
  ,,fnbi 74#c1jjj m9us 74#d1jjj7 m9us
    4#c1ejj7 equals 4#b1ejj
  
,=eign ,c.try ;,f
  ,taxa# capital ga9s 4#a1jjj
  ,all[a# capital losses1 z allocat$
    0taxpay] 74#a1jjj7 99
  ,o!r non-busi;s 9come ,,nil
  ,,fnbi 774#a1jjj7 m9us ,,nil7 equals
    ,,nil
  
,=eign ,c.try ;,g
  ,taxa# capital ga9s 4#b1jjj
  ,all[a# capital losses1 z allocat$
    0taxpaye 99 74#a1jjj7
  ,o!r non-busi;s 9come 4#d1bjj
  ,,fnbi 74#b1jjj m9us 74#a1jjj7 plus
    4#d1bjj7 equals 4#e1bjj
                                     #bd
             ,,it-#cie;,r#b          e#d
  ,! calcul,n ( ,corpor,n ;,d's ,,wi 7:
  is us$ 9 xs =eign tax cr$it calcul,ns
  = all =eign c.tries7 is z foll[s3

,taxa# capital ga9s """""""""""" 4#i1ejj
,all[a# capital losses """" 74#i1ejj7 99
,o!r non-busi;s 9come """""""""" 4#g1gjj
,busi;s 9come """""""""""""""""" 4#g1jjj
,,wi """""""""""""""""""""""""" 4#ad1gjj

99 ,(! 4#ad1ejj all[a# capital losses
  9curr$ 0,corpor,n ;,d =! ye>1 only
  4#i1ejj is deducti# "u subp>agraph
  #c7b77;ii7 = purposes ( -put+ 9come =!
  ye> "u sec;n #c (! ,act1 2c taxa#
  capital ga9s 9clud$ "u subp>agraph
  #c7b77;i7 >e only 4#i1ejj4 ,= purposes
  ( subsec;n #abf7#a71 ! 4#i1ejj
  deducti# all[a# capital losses >e
  deduct$ 9 calculat+ ,corpor,n ;,d's
  ,,wi4 ,! ,canadian-s\rce por;n (!
  4#i1ejj deducti# losses is 4#c1ejj
  7ev5 ?\< ! actual ,canadian-s\rce
  all[a# capital losses >e           #be
             ,,it-#cie;,r#b          f#d
  4#g1jjj71 2c ! ,canadian-s\rce taxa#
  capital ga9s 9clud$ "u subp>agraph
  #c7b77;i7 >e only 4#c1ejj4 ,"!=e1 !
  =eign-s\rce por;n (! 4#i1ejj deducti#
  all[a# capital losses is 4#f1jjj1 : is
  allocat$ am;g ! ?ree =eign c.tries4 ,!
  am.t allocat$ 6ea* c.try is subtract$
  9 calculat+ ,corpor,n ;,d's ,,fnbi = t
  c.try4 ,corpor,n ;,d c allocate !
  4#f1jjj am;g ! ?ree =eign c.tries 9 !
  mann] x *ooses1 z l;g z ! rules giv5 9
  7a7 & 7b7 abv >e met4

  ,! abv -;ts >e subject 6! -;ts 9
  p>agraph #i4

     ,tax-,exempt ,9come 7p>agraph
                  #i7
    
#i4 ,if a =eign-s\rce taxa# capital ga9
  is tax-exempt 9come1 x is n 9clud$ 9 !
  num]ator1 ,,fnbi4 ,simil>ly1 if a
  4posi;n result+ 9 a =eign-s\rce all[a#
  capital loss _h 9/1d result$ 9 a   #bf
             ,,it-#cie;,r#b          g#d
  =eign-s\rce taxa# capital ga9 t 0 tax-
  exempt 9come1 ! all[a# capital loss is
  n subtract$ :5 calculat+ ,,fnbi4

  ,= ? purpose1 8tax-exempt 9come0 is
  def9$ 9 subsec;n #abf7#g74 ,x is 9come
  f a s\rce 9 a c.try if two 3di;ns >e
  fulfill$ 9 respect ( t 9come3
  7a7 ! taxpay] is 5titl$ 6an exemp;n1
    2c (a tax tr1ty 96: t c.try has
    5t]$1 f all 9come or pr(its taxes1
    impos$ 9 t c.try1 6: ! tr1ty
    applies2 &
  7b7 no 9come or pr(its tax 6: ! tr1ty
    does n apply is impos$ 9 any c.try
    o!r ?an ,canada4
  
,example
  ,mr4 ;,a1 :o is a resid5t ( ,canada1
  has a taxa# capital ga9 f ! sale (
  %>es4 ,! sale o3urr$ on a /ock ex*ange
  9 a =eign c.try &! taxa# capital ga9
  is 3sid]$ 6h xs s\rce 9 t c.try4
  ,h["e1 "u ! t]ms (! tax tr1ty 2t   #bg
             ,,it-#cie;,r#b          h#d
  t c.try & ,canada1 ! ga9 is exempt f
  9come or pr(its taxes 0t c.try4
  ,fur!rmore1 ! ga9 is n subject 6an
  9come or pr(its tax 0a political
  subdivi.n ( t c.try or 0any o!r =eign
  jurisdic;n4 ,"!=e1 ,mr4 ;,a's taxa#
  capital ga9 is tax-exempt 9come & he
  _c 9clude x 9 ! num]ator1 ,,fnbi1 = t
  c.try = purposes (a =eign tax cr$it4














                                     #bh
          ,explan,n ( ,*anges         #e
    
               ,9troduc;n
    
  ,! purpose (! ,explan,n ( ,*anges is
6give ! r1sons =! revi.ns 6an 9t]pret,n
bullet94 ,x \tl9es revi.ns t we h made z
a result ( *anges 6! law1 z well z
*anges reflect+ new or revis$ 9t]pret,ns
(! ,,ccra4

           ,r1sons =! ,revi.n
    
  ,we h revis$ ? bullet9 6reflect !
relevant provi.ns (! ,9come ,tax ,act z
!y r1d at ! "t ( public,n (! revis$
bullet94

      ,legislative & ,o!r ,*anges
    
  ,9 p>agraph #c1 ! previ\s bullet9's
ref];e 6subsec;n #dh7#a7 has be5 replac$
0a ref];e 6p>agraph #abh.a7#d77b74 ,?

                                     #bi
             ,,it-#cie;,r#b          a#e
reflects ! rep1l ( sec;n #dh & replace;t
( rules "!9 0! rules 9 sec;n #abh.a4
  ,al 9 p>agraph #c1 a ref];e is n[ made
6! =eign tax cr$it all[$ "u subsec;n
#abf7#b.ba71 : 0 a4$ 6! ,act s9ce !
issu.e (! previ\s bullet94 ,! previ\s
bullet9's ref];e 6! =eign tax cr$it
all[$ "u subsec;n #abf7#b.b7 has be5
4cont9u$1 2c t subsec;n 0 am5d$ 6phase \
xs applic,n4
  ,p>agraph #e no l;g] 9dicates t !
,canadian tax tr1t;t giv5 9 t p>agraph
wd apply ev5 ": ! capital ga9 or loss 0
exempt f 9come or pr(its tax 9 !
applica# =eign jurisdic;n 0virtue (a
tr1ty 2t ,canada & t jurisdic;n4 ,?
*ange is 3sequ5tial on ! rules 4cuss$ 9
new p>agraph #i 7see explan,n 2l74
  ,! re^w+ ( p>agraph #f is = cl>ific,n
purposes only4
  ,p>agraphs #i & #aj (! previ\s bullet9
expla9$ ! e6ect ( claim+ a sec;n #aaj.f
capital ga9s deduc;n on a =eign-s\rce
taxa# capital ga94 ,^! p>agraphs     #cj
             ,,it-#cie;,r#b          b#e
7&! ref];e 6!m at ! 5d ( p>agraph #e7 9
! previ\s bullet9 h n be5 3t9u$ 9 ! new
bullet9 2c a capital ga9s deduc;n c n[ 2
claim$ only on a taxa# capital ga9
result+ f ! 4posi;n (a 8qualifi$ small
busi;s corpor,n %>e0 or ( 8qualifi$ f>m
prop]ty04 ,a taxa# capital ga9 on !
4posi;n ( ei ( ^! types ( prop]ty
ess5ti,y repres5ts ,canadian-s\rce 9come
t _c 2 9clud$ 9 subp>agraph
#abf7#a77b77;i7 7! num]ator1 ,,fnbi1 9
p>agraph #a74
  ,p>agraph #i is n[ a new p>agraph4 ,x
4cusses ! e6ect (! rules = 8tax-exempt
9come0 on =eign-s\rce taxa# capital ga9s
& all[a# capital losses4 ,^! rules 7 a4$
6! ,act s9ce ! issu.e (! previ\s
bullet94
  ,any o!r *anges "?\t ! bullet9 7 made
only = purposes ( cl>ific,n or
r1dabil;y4


                                     #ca