knowledge topics
Capital Losses for Investors
KNOWLEDGE EXPECTED OF: Both CFP® Professionals and QAFPTM Professionals
- 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
- Personal use property6
- Non-depreciable capital property
- 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)
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Define
To state exactly the meaning of
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Identify
To be aware of / to recognize and correctly name / to locate an appropriate resource
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Explain
To make clear the meaning of / to describe something in more detail or reveal relevant facts or ideas related to it
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Compare
To note the similarities and differences between two or more things
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Estimate
To determine an approximate value for
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Calculate
To find the value using mathematics
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Convert
To change from one form or purpose to another
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Evaluate
To reach a conclusion or make a judgement through careful study
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Interpret
To give the meaning of / to construe or understand / to translate orally

REFERENCES
- http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/rprtng-ncm/lns101-170/127/glssry-eng.html#capitalloss
- http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/rprtng-ncm/lns101-170/127/glssry-eng.html#allowablecapitalloss
- http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/rprtng-ncm/lns101-170/127/glssry-eng.html#netcapitalloss
- http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/rprtng-ncm/lns101-170/127/glssry-eng.html#terminalloss
- http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/rprtng-ncm/lns101-170/127/glssry-eng.html#recapture
- http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/rprtng-ncm/lns101-170/127/cmpltng/prsnls/menu-eng.html
- http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/rprtng-ncm/lns101-170/127/lss-ddct/lpp-bmd/menu-eng.html
- http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/rprtng-ncm/lns101-170/127/cmpltng/mtlfnds/menu-eng.html
- http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/rprtng-ncm/lns101-170/127/lss-ddct/gnrl/menu-eng.html
- http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/rprtng-ncm/lns101-170/127/lss-ddct/gnrl/smmry-pf-eng.html
- http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/rprtng-ncm/lns101-170/127/lss-ddct/sprfcl/ffltd-eng.html
- http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/rprtng-ncm/lns101-170/127/lss-ddct/sprfcl/menu-eng.html
- http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/rprtng-ncm/lns101-170/127/lss-ddct/sprfcl/nt-eng.html
- http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns206-236/217-228/whtsnbl-eng.html
- http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns206-236/217-228/whthppns-eng.html