Do you have a gain or loss?

Usually, you have a capital gain or loss when you sell or are considered to have sold capital property. The following are examples of cases where you are considered to have sold capital property:

• You exchange one property for another.
• You give property (other than cash) as a gift.
• Shares or other securities in your name are converted.
• You settle or cancel a debt owed to you.
• You transfer certain property to a trust.
• Your property is expropriated.
• Your property is stolen.
• Your property is destroyed.
• An option that you hold to buy or sell property expires.
• A corporation redeems or cancels shares or other securities that you hold (you will usually be considered to have received a dividend, the amount of which will be shown on a T5 slip).
• You change all or part of the property's use.
• You leave Canada [see Leaving Canada (emigrants)].
• The owner dies (see What to do when someone has died).

Also, depending on your own situation, you may or may not have a capital gain (or loss) when you dispose of personal-use property or Canadian securities.

Forms and publications

• Guide T4037, Capital Gains
• Guide T4011, Preparing Returns for Deceased Persons
• Information sheet RC4169, Tax Treatment of Mutual Funds for Individuals
• Income Tax Folio S1-F3-C2, Principal Residence

Related topics

• Changes in use of Property
• Principal residence
• Line 126 - Rental income

Date modified:

2016-01-05