When an individual has allowable capital losses for a tax year that exceed his or her taxable capital gains for the year, _______.

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Part 1

Choose the correct answer.

A.

the excess is deductible against any other type of taxable income

B.

the excess becomes a capital loss carryover which can be applied to a previous or subsequent taxation year

This is the correct answer.

C.

the excess can be deducted against business income, but not against employment or property income

D.

the excess becomes a non-deductible loss