Andrew invested $5,000 in shares of Balance Corporation Ltd. The corporation is now bankrupt and the shares have a fair market value of nil.

REQUIRED
(1) If Andrew has not claimed a capital gains deduction in previous years, what is Andrew’s allowable business investment loss and what can it be deducted against in the year?
(2) If Andrew had claimed a capital gains deduction of $1,000 (inclusion rate already applied) five years ago, what is Andrew’s tax position with respect to the loss on the shares this year?