Line 25395 – Capital gains deduction for qualifying business transfer or qualifying cooperative conversions
- Tax year: 2025
- Return type: Personal income tax and benefit return
If you have a capital gain from a qualifying business transfer (QBT) or a qualifying cooperative conversion (QCC), you may be eligible for a capital gains deduction.
For a QBT, you may claim the deduction, if certain conditions are met when shares of a corporation are sold to a trust (or to a corporation fully owned by that trust). To find out if your QBT qualifies for this deduction, see "Additional information" on Form T24EOT, Joint Election for Capital Gains Deduction in Respect of a Qualifying Business Transfer.
For a QCC, you may claim this deduction, if certain conditions are met, when shares are sold to a worker cooperative that takes control of the business at the time of the sale. To find out if your QCC qualifies for this deduction, see "Additional information" on Form T25QCC, Joint Election for Capital Gains Deduction in Respect of Qualifying Cooperative Conversion.
Completing your tax return
Form T24EOT must be submitted to the CRA before you can claim the capital gains deduction for QBT and Form T25QCC must be submitted to the CRA before you can claim the capital gains deduction for QCC.
Use the elected amount and percentage allocated to you on Form T24EOT to complete Form T2048, Capital Gains Deduction for Qualifying Business Transfers or Qualifying Cooperative Conversions and calculate the maximum amount of capital gains deduction for QBT or QCC that you can claim on line 25395 of your return.
You must claim any capital gains deduction for QBTs on line 25395 before you claim any capital gains deduction for QCCs on line 25395 or any capital gains deduction on line 25400 for a particular disposition.
Forms and publications
- Get a T1 income tax package
- Form T24EOT, Joint Election for Capital Gains Deduction in Respect of a Qualified Business Transfer
- Form T25QCC, Joint Election for Capital Gains Deduction in Respect of Qualifying Cooperative Conversion
- Form T2048, Capital Gains Deduction for Qualifying Business Transfers or Qualifying Cooperative Conversions