BC 4 Net income and net loss
Income more than deductions

(1)

If, for a tax year, a person’s annual gross income is more than their annual total deduction, the difference is their net income for the year.

Income equal to deductions

(2)

If, for a tax year, a person’s annual gross income equals their annual total deduction, their net income for the year is zero.

Deductions more than income

(3)

If, for a tax year, a person’s annual total deduction is more than their annual gross income, the difference is their net loss for the year, and their net income for the year is zero.

Treatment of net loss

(4)

A person’s net loss for a tax year is included under Part I (Treatment of tax losses) in their tax loss for the tax year that may, under Part I, be—

(a)

subtracted from their net income for a future tax year:

(b)

made available to another person to subtract from that other person’s net income for that or a future tax year:

(c)

used in certain other ways.

Defined in this Act: annual gross income, annual total deduction, net income, net loss, tax loss, tax year

Compare: 2004 No 35 s BC 4