So it would be added to his taxable income in that year, one hundred cents on the dollar, though I know there is a provision with regard to spreading the cost over a number of years. Then I asked:
Yes, so basically, although you have mentioned some exceptions and I am prepared to determine those in a few moments, what the chartered accountant of one of the national firms said is true, that the distinction between capital gains and income will be virtually abolished because in many cases-I have given you two or three illustrations, but I am sure you could give me more than I have given you because you are far more knowledgeable in this field-it will merely be added to the taxable income and become taxable in the year. Is that correct?
Topic: INCOME TAX ACT
Subtopic: SUGGESTED DEDUCTION FOR TEXTBOOKS, EQUIPMENT, MEDICAL FEES, ETC., IN RESPECT OF STUDENTS, THEIR PARENTS OR SPOUSES