Line 25400 – Capital gains deduction

Note: Line 25400 was line 254 before tax year 2019.

If you have capital gains arising from the disposition of certain properties, you may be eligible for the cumulative capital gains deduction, and may be able to reduce your taxable income. The topics below provides information on the deduction.

Topics

• What's new for capital gains
  What's new for capital gains for 2022.
• Which capital gains are eligible for the capital gains deduction?
  The capital gains must arise from the disposition of qualified property.
• Who is eligible to claim the capital gains deduction?
  Canadian residents are eligible. Read more.
• What is the capital gains deduction limit?
  How is it calculated? How much can you claim?
• How do you claim the capital gains deduction?
  Completing the appropriate forms and your tax return
• Affidavits and valuations for the transfer of a small business, family farm or fishing corporation (Bill C-208)
  For transfers of a small business, family farm or fishing corporation (Bill C-208)

Forms and publications

• Guide T4037, Capital Gains
• Federal Income Tax and Benefit Guide
• Form T657, Calculation of Capital Gains Deduction for 2022
• Form T936, Calculation of Cumulative Net Investment Loss (CNIL) to December 31, 2022

Related topics

• Line 12700 – Taxable capital gains