In previous years, figuring out capital gains minus capital losses was straightforward. The inclusion rate was 75%, therefore 75% of any gain was taxable, and 75% of losses were deductible from gains.

This year, due to the federal government's two reductions in the capital gains tax, the calculation may be more complex. Here's how the reductions to the capital gains tax will affect the inclusion rate for 2000.

• From January 1 to February 27, investors will use an inclusion rate of 75%.
• From February 28 to October 17, the inclusion rate is two-thirds.
• From October 18 th onward, the inclusion rate is 50%.

Once you have survived this year's calculations, you can breathe a sigh of relief. It's likely that next year, the 50% inclusion rate will apply throughout the entire Year.