Capital gains are becoming one of the cheaper forms of income. In 2000, the inclusion rate of capital gains dropped from 75%, to two-thirds, and then to 50%. This means that only half of any capital gain you have realized in 2001 will be taxable
Take advantage of the lower tax effect on capital gains, by investing more in capital growth investments rather than sources such as dividends or interest. If you are reporting capital gains for 2001, check for capital losses carried forward and eligibility for the capital gains exemption.
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