How do you claim the capital gains deduction?

If you are eligible to claim the capital gains deduction against eligible taxable capital gains arising from the disposition of qualified property, you will first need to complete Schedule 3 to report the dispositions and calculate the taxable capital gain or net capital losses.

If you are reporting a reserve claimed on your 2021 return or claiming a reserve in 2022, you have to complete Form T2017, Summary of Reserves on Dispositions of Capital Property. Enter the amount from line 67060 of this form on line 19200 of Schedule 3.

If you have investment income or investment expenses in any years from 1988 to 2022, you will also have to complete Form T936, Calculation of Cumulative Net Investment Loss (CNIL) to December 31, 2022. Enter the amount from line C of this form on line 28 of Form T657 for 2022.

Complete Form T657, Calculation of Capital Gains Deduction for 2022, to calculate your claim for the capital gains deduction.

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