[Verse 1] When you sell that stock or piece of land Capital gains come into play First we need the cost that's in your hand Adjusted cost base leads the way Purchase price plus improvements made Minus depreciation claimed Every dollar tracked and carefully weighed That's your starting point maintained [Chorus] ACB minus POD equals your gain or loss Adjusted cost base minus proceeds across Then take that gain and cut it right in half Fifty percent inclusion makes the tax math ACB minus POD, then slice it down the middle That's the capital gains tax riddle [Verse 2] Proceeds of disposition tell the tale What you received when assets sold Market value when the sale's not real Fair market value must be told Legal fees and selling costs Reduce the proceeds that you claim Every expense that the transaction costs Lowers the taxable gain [Chorus] ACB minus POD equals your gain or loss Adjusted cost base minus proceeds across Then take that gain and cut it right in half Fifty percent inclusion makes the tax math ACB minus POD, then slice it down the middle That's the capital gains tax riddle [Bridge] If the number comes out negative You've got a capital loss instead Carry it back three years selective Or forward indefinitely ahead Only against capital gains it fights Can't offset your regular income flow But it reduces those future tax bites When capital gains start to grow [Verse 3] Identical properties complicate Average out the cost base true When you buy the same stock at different dates Pool them all to see it through Superficial loss rules watch for trades Thirty days before and after sale If you repurchase in that time window's shade The loss claim will surely fail [Chorus] ACB minus POD equals your gain or loss Adjusted cost base minus proceeds across Then take that gain and cut it right in half Fifty percent inclusion makes the tax math ACB minus POD, then slice it down the middle That's the capital gains tax riddle [Outro] From stocks and bonds to real estate Capital gains are everywhere Master the formula don't be late ACB and POD with care Fifty percent inclusion rate Makes the tax bite not so deep Capital gains don't have to be your fate When you know the rules to keep
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