Which capital gains are eligible for the capital gains deduction?

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https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-25400-capital-gains-deduction/which-gains-eligible.html

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Which capital gains are eligible for the capital gains deduction?

The capital gains deduction can be applied against taxable capital gains included in 2023 income that arose from:

  • dispositions of qualified small business corporation shares (QSBCS)
  • dispositions of qualified farm or fishing property (QFFP)
  • reserves brought into income in 2023, from either of the above
  • the allocation and designation by a trust of taxable capital gains reported in the trust’s tax year on the disposition of QSBCS or QFFP
  • the allocation and designation by a trust of taxable capital gains resulting from a reserve brought into income in the trust’s tax year relating to a disposition of QSBCS or QFFP in a prior tax year of the trust

Note


Any capital gains from the disposition of these properties while you were a non-resident of Canada are not eligible for the capital gains deduction unless you meet the requirements explained in the section Who is eligible to claim the capital gains deduction?.

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Date modified:
2024-01-23