Investco Inc. has the following information for its year ended December 31, 2017

Question

Investco Inc. has the following information for its year ended December 31, 2017. Capital gains on sale of capital assets $222,000 Capital losses on sale of public shares $168,000 Allowable business investment loss (ABIL) $10,500 Dividends from taxable Canadian corporations $96,000 Canadian-source interest income $54,400 Business loss $546,000 The company has a net capital loss of $38,000 from 2015 available for carryforward and would like to deduct this loss to the extent possible in 2017. What is the non-capital loss carryover balance at the end of 2017?.

Explanation / Answer

Capital loss an be set off against Capital gain.

Capital gain = $222000

Set off = $168000+$38000 = $206000

Balance = $16000

Income from other sources = $96000 + $ 54400 = $150400

Non capital loss carry forward = $546000 - $150400-$5500 = $390100

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