Only one-half of a terminal loss can be deducted in the determination of a taxpayer's Net Income For Tax Purposes.

Question

Quizplus · Accepted Answer

In Canada, the full amount of a terminal loss can be deducted in the determination of a taxpayer's Net Income For Tax Purposes, not just one-half. Terminal losses occur when the undepreciated capital cost of a class of depreciable property exceeds the proceeds of disposition of property in that class at the end of the tax year.

Only One-Half of a Terminal Loss Can Be Deducted in the Determination