Problem
Dr. Lam is 36 years old and is in the process of getting a divorce. As part of the divorce proceedings, Dr. Lam must sell a number of his assets and holdings in order to divide the assets of the marriage and pay a large settlement to his former spouse, Jana. Dr. Lam has provided you with the following list of assets that he sold in the current year, including the asset cost and the proceeds of disposition:
• Calculate the capital gain (or loss) for each of the dispositions in the current taxation year.
• Calculate the net taxable capital gain for Dr. Lam for the current year.
• Dr. Lam has a capital loss carry-forward from a prior year. He asks you the following question:
What are the rules in regard to the carry-back and carry-forward rules for capital losses? Do these rules differ from the rules that apply to non-capital losses?