Capital gains and losses

► Income tax can represent a substantial cost on your investments. Consider your after-tax return swhen evaluating investment options.

►If you’re selling capital property and a portion of the proceeds isn’t due until a later year, plan to have enough cash on hand to pay the taxes due each year during the reserve period.

► If the proceeds are received as a demand promissory note, a reserve will not be available, since the note is considered to be due immediately rather than in a later year.