B7 - Sunday, March 27, 1983 - North Shore News

EE business

CAPITAL GAINS AND LOSSES

You win some, you lose some

You win some and you
lose some. If you invested
money in 1982 and made a
capital gain, you may have
benefited from the upturn in

the stock market last
summer. Many people who
invested in !982 will be

reporting capital losses when
they do their tax returns this
spring. Either way, you have
a tax calculation.

First, the winners. If you
were lucky enough to make
a gain last year, you'll be
reporting that gain on
Schedule 2 of your tax
return. The amounts you
report on Schedule 2 are the
full amounts, however, after
completing the = schedule
you'll find that only half of
your net gain is transferred
to page | of your return as
taxable income.

If you buy shares, bonds.
bills, debentures, mortgages
or similar obligabons and
sell them ata profit, that is a
capital gain) Similarly. you
may also have a capital gain
when you sell real estate and
other capital property

You are allowed to
receive up to $1000 per year
of ehgible interest, dividends
and taxable capital gains tax
{ree

Income chipible for this
deduction tneludes bank
interest interest from
Canada Savings Bonds os
annuities oof interest and

dividends

from other

Canadian sources which you
deal at arm's length.

If you have borrowed
money to buy stocks or other
eligible investments, you
must deduct your interest
expense from your. in-
vestment income.

If you lost more than you
won on your investments in
1982, you will calculate an
allowable capital loss on
Schedule 2. You can deduct
up to $2,000 of your
allowable capital loss against
other income in 1982. If your
aHowable losses in 1982.
exceed $2,000, you can carry
the excess amount back to
1981 and claim it against
1981 capital gains and up to
$2,000 against income in
1981. If you still have not
claimed all your eligible
losses, the remainder can be
cared forward to sub-
sequent lax years in
definitely and deducted
against future capital gains
or up to $2,000 of other
income per year

Business investment losses
are treated differently from
capital losses) A business
inyesiment loss mayinclude -
a debt owed to a taxpayer by
a Company, a payment of a
bank guarantee or a direct
investment

If your business in
vestment loss is greater than
your income for the year,
you can Carry it back and
deduct it) from) tncome in
1981 Tf you stl haven't used

ac
& Oo

COMMERCIAL - HOMEOWNERS

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INSURANCE

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it all, you can deduct the
excess from any income you
have during the next five
taxation years, 1983-87, until
your allowable loss is used
up. This is different from
capital losses which you can

income.

The calculation of capital
gains and losses can be
complicated. Lf you're not
sure of the rules, or if you
are uncertain about’ the
eligibility of an investment,

only deduct against capital
gains or %$2,000 of other

considér seeking
professional advice.

SIX MONTH
FIRST MORTGAGES

Q2°s

Subject to qualification & availability of funds.

Guara

Tmt ®

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1645 MARINE DRIVE
WEST VANCOUVER

922-0158

AX
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1452 LONSDALE AVE
NORTH VANCOUVER

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100": CANADIAN OWNED

CLARE CUNNINGHAM leads some students through
a few exercises in one of her evening ballet classes.
Danceworks teaches jazz and ballet in their Marine
Drive studio on the North Shore.

RECONDITIONED CLEARANCE

A.B. DICK 675 (2 only)

MINOLTA 1114 (5 only)

° FEATURE! °

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MAY 31/83

STEELHEAD
Business Products
~~ 1087 CHURCHILLN.Y. 950-7565 |