Which capital gains are eligible for the capital gains deduction?
The capital gains deduction can be applied against taxable capital gains included in 2023 income that arose from:
- dispositions of qualified small business corporation shares (QSBCS)
- dispositions of qualified farm or fishing property (QFFP)
- reserves brought into income in 2023, from either of the above
- the allocation and designation by a trust of taxable capital gains reported in the trust’s tax year on the disposition of QSBCS or QFFP
- the allocation and designation by a trust of taxable capital gains resulting from a reserve brought into income in the trust’s tax year relating to a disposition of QSBCS or QFFP in a prior tax year of the trust
Any capital gains from the disposition of these properties while you were a non-resident of Canada are not eligible for the capital gains deduction unless you meet the requirements explained in the section Who is eligible to claim the capital gains deduction?.
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