BoK Statement

Define values associated with capital losses, such as:
- Capital loss¹
- Allowable capital loss²
- Non-capital loss
- Net capital loss³
- Terminal loss⁴
Define a recapture of capital cost (for depreciable property).⁵
Calculate the capital loss and allowable capital loss resulting from the disposition of capital property.
- Non-depreciable capital property
  - Personal use property⁶
    - Listed personal property⁷
    - Other property⁸
Identify how a capital loss for depreciable capital property is handled.
Explain the carryforward and carryback provisions for net capital losses.^9,10
- For listed personal property
- For other capital property
Define an affiliated person.¹¹
Define a superficial loss.¹²
Identify when a loss may not be considered a superficial loss.¹³
Explain the income tax treatment of a superficial loss.¹²
- For the transferor
- For the transferee
- Explain how the adjusted cost base of property is affected by a superficial loss.
- Estimate a superficial loss.
- Define a business investment loss.¹⁴
- Define an allowable business investment loss (ABIL).¹⁵
- Explain the carryforward and carryback options available for an allowable business investment loss.¹⁵
- Define a cumulative net investment loss (CNIL).
- Explain the significance of a cumulative net investment loss.

Glossary of Verbs (mouse over to see definition)

Define

To state exactly the meaning of

Identify

To be aware of / to recognize and correctly name / to locate an appropriate resource

Explain

To make clear the meaning of / to describe something in more detail or reveal relevant facts or ideas related to it

Compare

To note the similarities and differences between two or more things

Estimate

To determine an approximate value for

Calculate

To find the value using mathematics

Convert

To change from one form or purpose to another

Evaluate

To reach a conclusion or make a judgement through careful study

Interpret

To give the meaning of / to construe or understand / to translate orally

Read more about the Taxonomy used in the FP-BoK

Financial Planning Body of Knowledge