About capital gain and loss amounts

Capital gain and loss amounts

Schedule 6, Summary of Dispositions of Capital Property is used if a corporation disposes of (actual or deemed) capital property or claimed an allowable business investment loss (ABIL), or both. The amounts shown on this page are from the applicable lines of the schedule 6 corresponding to the tax year-end. The tax year-end will be displayed when there is at least one of the amounts available to display. When no amounts exist, the tax year-end will not be displayed. 

Allowable business investment loss (ABIL)

Generally, a business investment loss arises from the arm's length disposition (or deemed disposition) of:

• shares of a small business corporation; or
• certain debts owed to the corporation by:
• a small business corporation;
• certain bankrupt corporations; or
• certain wound-up corporations (these corporations have to deal with the corporation at arm's length).

A small business corporation is defined in subsection 248(1) of the Income Tax Act. The amount shown on this page is from line 406 of the schedule 1 corresponding to the tax year-end.

Capital gains or losses, excluding ABILs

A capital gain results when the proceeds of disposition of a capital property are more than the adjusted cost base and any related outlays or expenses. A capital loss occurs when the proceeds of disposition are less than the adjusted cost base and the related outlays and expenses. The amount shown on this page is from line 890 of the schedule 6 corresponding to the tax year-end.

Gain on donation of a share, debt obligation, or right listed on a designated stock exchange and other amounts under paragraph 38(a.1)

This is the one half of the amount of capital gains realized before May 2, 2006 and the full amount of capital gains realized after May 1, 2006 on donations of:

• a security listed on a designated stock exchange;
• a share or unit of a mutual fund;
• an interest in a segregated fund; or
• a prescribed debt obligation made to a qualified doner.

The amount shown on this page is from line 895 of the schedule 6 corresponding to the tax year-end.

Gain on donation of ecologically sensitive land

This is the one half of the amount of capital gains realized before May 2, 2006 and the full amount of capital gains realized after May 1, 2006 on donation of ecologically sensitive land. The amount shown on this page is from line 896 of the schedule 6 corresponding to the tax year-end.

Exemption threshold at the time of disposition 

This is in general the total original cost of the flow-through share class of property minus any capital gains realized on such shares and applies to shares issued under an agreement entered into after March 21, 2011. The amount shown on this page is from line 897 of the schedule 6 corresponding to the tax year-end.

Total of all capital gains from the disposition of the actual property

This is the total of the capital gains from the actual disposition of flow-through shares and applies to shares issued under an agreement entered into after March 21, 2011. The amount shown on this page is from line 898 of the schedule 6 corresponding to the tax year-end.