[Verse 1]
When your business bleeds red ink this year
Non-capital losses disappear in time
Twenty back, three forward, crystal clear
Before they vanish from your bottom line
Calculate the net, then watch the clock
Three years behind, twenty years ahead
File those forms before the deadline locks
Your precious losses buried with the dead
[Chorus]
Twenty back and three ahead for regular loss
Capital losses forward only, never cross
ABIL gets the special treatment, half the pain
Control shifts and losses vanish down the drain
Stream them carefully or watch them fade away
Loss utilization rules the tax game we play
[Verse 2]
Capital losses trapped in their own cage
Can't offset your regular income stream
Only capital gains will turn the page
While ABIL breaks free from this rigid scheme
Allowable business investment loss will bend
Half becomes a non-capital friend
The other half stays capital to the end
Two buckets where your ABIL losses blend
[Chorus]
Twenty back and three ahead for regular loss
Capital losses forward only, never cross
ABIL gets the special treatment, half the pain
Control shifts and losses vanish down the drain
Stream them carefully or watch them fade away
Loss utilization rules the tax game we play
[Bridge]
Section one-eleven-five takes the stage
When control acquisition seals your fate
Losses trapped behind the ownership cage
Same business test might liberate
But streaming rules will hunt you down
Shell companies wearing losses like a crown
Revenue watchers patrol the ground
Where artificial losses can be found
[Verse 3]
Similar properties and related biz
The streaming rules cut through your clever plans
When losses dance where they were never his
The tax code strikes with iron-fisted hands
Arm's length dealing keeps the pathway clean
But related parties face the guillotine
Loss utilization's tougher than it seems
When Revenue dissects your loss regime
[Chorus]
Twenty back and three ahead for regular loss
Capital losses forward only, never cross
ABIL gets the special treatment, half the pain
Control shifts and losses vanish down the drain
Stream them carefully or watch them fade away
Loss utilization rules the tax game we play
[Outro]
Carryback and carryforward, know your dates
Before the tax collector seals your fates