• Last Updated:
  • Jun 22nd, 2005 2:35 pm
Sr. Member
Jan 11, 2005
503 posts
1 upvote
Yes.. you are correct I think people should realize the order of preferential tax treatment of gains and income for personal taxes for things.

Capital gains... The best... part of gain is tax free... the rest is taxed with your income.

Dividends... second best... as there is a rebate on part of the dividend amount.

Personal income & interest income.... worst of all as everything is taxable.

For all of the amounts that are taxable from above.. you only get a break on amounts up to the personal exemption amount.

15-20_God wrote:interest is taxed at 100% of your marginal tax rate. After taxes and inflation, you're no better off. The best way to build wealth is through capital gains as it has a more favorable tax policy compared to other sources of income.
Deal Addict
Jan 1, 2005
1697 posts
if the loss were incurred pre 2000, the carried forward amount would be complicated due to the change of capital gain inclusion rate.

T1A would work for loss carried back. I.e. if you have loss in 2004 and gain in 2001, 2002, 2003, T1A should do the trick.

If you have loss from previous years (pre 2000), what I always do is to call CRA and obtain the details gross capital loss info for each year. Then you can calculate the net capital loss to applied on current year tax return.