Replacement property

If you sell an eligible capital property and replace it with another one for the same or similar use, you can choose to postpone all or part of any gain on the sale.

This happens if you acquire a replacement eligible capital property within a certain period of time.

To do this, you have to replace the property no later than one year after the end of the tax year in which you sell the original property.

Forms and publications

• Guide T4002, Business and Professional Income
• Guide T4037, Capital Gains
• Schedule 3, Capital Gains (or Losses)
• Interpretation Bulletin IT-143, Meaning of Eligible Capital Expenditure
• Interpretation Bulletin IT-259, Exchange of Property

Related topics

• Terms you should know

Date modified:

2016-01-05