[Verse 1] When you buy and sell for profit gain Is it income or capital's domain? Happy Valley Farms shows us the way Trading frequency matters every day If it's your business, income it will be But investment gains are taxed differently [Chorus] Thirty-eight to fifty-five, that's where the rules reside Half the gain is what you claim, capital gains applied LCGE saves the day, principal residence hooray Stop-loss rules will block your moves, superficial loss won't pay [Verse 2] Section thirty-eight begins the dance Half inclusion rate gives you a chance But in twenty twenty-four things changed around Higher earners pay more on gains they've found Two-thirds inclusion when you cross the line Quarter million threshold, pay the fine [Chorus] Thirty-eight to fifty-five, that's where the rules reside Half the gain is what you claim, capital gains applied LCGE saves the day, principal residence hooray Stop-loss rules will block your moves, superficial loss won't pay [Bridge] Lifetime capital gains exemption waits Small business shares and farming real estate Million dollar shelter from the tax Principal residence, no gains to track Superficial loss within thirty days Stops your tax planning clever ways [Verse 3] Compute your gain, subtract your cost Add improvements that you haven't lost Capital losses offset capital gains Carry forward when the red remains Three years back or forward without end Till capital gains help losses blend [Chorus] Thirty-eight to fifty-five, that's where the rules reside Half the gain is what you claim, capital gains applied LCGE saves the day, principal residence hooray Stop-loss rules will block your moves, superficial loss won't pay [Outro] Income or capital, make the call Subdivision C covers it all From Happy Valley to your home so sweet Capital gains make tax complete
← 2 Computing Income — The Structural Framework | 6 Other Income and Deductions →