Dividend stripping rules restrict loss deduction where exempt dividend on securities or units is received around the record date. Section 94(7) denies loss relief where a person buys securities or units within three months before the record date and disposes of them within the specified post-record-date periods while receiving exempt dividend or income; losses are ignored to the extent they do not exceed the exempt dividend or income. Defined terms include record date, securities (stocks and shares), and unit (business trust units, specified fund units, and beneficial interests in alternative investment funds). Certain taxed-in-recipient scenarios and tax-election outcomes affect applicability.