Income tax: capital gains: how is a net capital loss treated if it is unrecouped by a taxpayer at the date of his or her death?

A capital loss of a deceased taxpayer may be offset against any capital gain of the taxpayer in his or her final individual income tax return. Any unrecouped net capital loss lapses on the death of the taxpayer.

This (unrecouped) net capital loss cannot be: (a) offset against other income in the final income tax return of the deceased; or (b) carried forward into the first income tax return of the trust estate to be offset against future capital gains made by the trust estate; or (c) used by the beneficiaries of the deceased estate to be offset against their own capital gains.