SCHEDULE 3: CAPITAL GAINS

Schedule 3, Capital Gains (or Losses), reports every disposition of capital property during the year and calculates the taxable capital gain or net capital loss.

SECTIONS OF THE SCHEDULE

1. Qualified small business corporation shares (eligible for the lifetime capital gains exemption).

2. Qualified farm or fishing property (also LCGE-eligible).

3. Mutual fund units and other shares, including publicly traded shares and ETFs.

4. Real estate, depreciable property and other properties, including the sale of a principal residence with designation on Form T2091.

5. Bonds, debentures, promissory notes and similar properties.

6. Other mortgage foreclosures and conditional sales repossessions.

7. Personal-use property (gains only; losses not allowed), using a minimum $1,000 cost and proceeds.

8. Listed personal property (art, jewellery, stamps, coins, rare books).

COLUMNS FOR EACH DISPOSITION

• Number of units and description.

• Year of acquisition.

• Proceeds of disposition.

• Adjusted cost base.

• Outlays and expenses.

• Gain or loss.

OTHER LINES

• Capital gains from T3 and T5 slips and partnership T5013 slips.

• Capital gains reserves from the previous year (Form T2017).

• Principal residence designation box: tick if the sale of a principal residence is reported.

• The total net gain is multiplied by 50 percent and carried to line 12700.

LOSSES

If the total is a loss, nothing goes on line 12700. The net capital loss is tracked by the CRA and can be applied against gains in other years using line 25300 or Form T1A for a carryback.