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Jet has a LPP loss carryforward from Year 1 of $2,000. In Year 2, he realized an LPP gain of $1,000 and a taxable capital
Jet has a LPP loss carryforward from Year 1 of $2,000. In Year 2, he realized an LPP gain of $1,000 and a taxable capital gain on other capital property of $3,500. Which of the following statements are true? Question 11 options: a) Jet can deduct $1,000 of the LPP loss carryforward against LPP gains realized in the year in determining his Division B income (net income). b) The $1,000 of Jet's LPP loss that is not used in Year 2 will expire in Year 3. c) Jet may deduct $1,000 of his LPP loss carryforward against the LPP gain realized in the year and deduct the remaining $500 ($1,000 ) against the taxable capital gain realized in the year. d) Jet may claim the full $2,000 of LPP loss carryforwards in Year 2
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