While the reason on the basis of fairness and equity are valid in relation to indexing
these terms have absolutley no relevance to tax law
Simple fact is the same reason for indexing of carried forward tax losses on rental properties could equally be as valid for all carried forward tax losses.
However reality has it that there are no provisions to increase any carried foraward tax loss through indexation.
It is not uncommon for some companies to carry forward tax losses for 10+ years, which means by the time they get to utilise the loss the dollar value of the loss has been greatly reduced. This is also exactly what currently applies under non-commercial loss provisions of the tax act.
Therefore I would hold very little hope that somehow they would allow indexing of losses they made investors carried forward on rental properties
