ARCHIVED - Line 127 - Taxable capital gains

Archived

This page has been archived on the Web.

A capital gain or a capital loss usually occurs when you sell or dispose of property, such as real estate or shares. The taxable part of a capital gain is 75% of the net amount of your capital gains minus your capital losses for the year.

Under proposed legislation, if after 1991, you realized a capital gain as a result of a mortgage foreclosure or conditional sales repossession, the capital gain is excluded when calculating your claim for the GST credit, Child Tax Benefit payments, age amount, and child tax credit.

In addition, such a gain is not included in the calculation of a social benefits repayment at line 235. If this applies to you, contact us for more details.

How to report

Use Schedule 3 to calculate your taxable capital gains or allowable capital losses and attach the completed schedule to your return. If you receive a T5008 slip, an account statement showing your securities transactions, or a financial statement from a partnership, use the information on these statements to help you complete Schedule 3. If you need more information on capital gains or capital losses, get the income tax guide called Capital Gains.

If you have a taxable capital gain, transfer the amount from line 044 on the back of Schedule 3 onto line 127 of your return. If you have a net capital loss, do not claim it on line 127. You can only use it to reduce your taxable capital gains of other years. See the "Note" at line 253 for details on how to carry back your loss.

Tax Tip

You may be able to claim a deduction for the taxable capital gain you report. See line 254 for details.

Date modified:

2002-02-04