Capital gains (or losses) from information slips
Most capital gains and capital losses reported on Schedule 3 come from amounts shown on the following information slips:
- T3, Statement of Trust Income Allocations and Designations
- T4PS, Statement of Employee Profit-Sharing Plan Allocations and Payments
- T5, Statement of Investment Income
- T5008, Statement of Securities Transactions
- T5013, Statement of Partnership Income
The back of the information slip explains where to report the income shown in each box and it refers you to the appropriate section of the Federal Income Tax and Benefit Guide when necessary.
This chart explains how to report on Schedule 3 the capital gains (or losses) and other amounts shown on certain information slips. For information on reporting interest or dividend income, see Line 12000 or Line 12100.
Your investment dealer (for example, bank, broker, or fund company) may issue a customized statement listing your dispositions and redemptions, rather than a T5008 information slip. Read more below in Completing your Schedule 3.
The T3 slip, Statement of Trust Income Allocations and Designations, includes box 42, "Amount resulting in cost base adjustment". The amount in box 42 represents a distribution or return of capital from the mutual fund trust identified on the slip. This amount is used when calculating the adjusted cost base (ACB) reported on Schedule 3 for the property in the year of disposition. For more information and an example of the calculation, see Tax treatment of mutual funds.
Report your gains or losses in Canadian dollars. Use the exchange rate that was in effect on the day of the transaction or, if there were transactions at various times throughout the year, you can use the Exchange Rates or Annual Average Exchange Rates (1997 to 2017).
Completing your Schedule 3
Generally, capital gains or losses indicated on T3, T4PS, T5 and T5013 slips are reported on line 17400 or line 17600 of Schedule 3, however there are exceptions.
Capital gains from dispositions of qualified small business corporation shares and qualified farm or fishing property are eligible for the capital gains deduction. Therefore, you have to report those gains on lines 10700 or 11000, whichever applies.
Capital gains or losses arising from dispositions of publicly-traded shares or mutual fund units are reported on line 13200 of Schedule 3. Enter the proceeds of disposition in column 2. This is the amount you received or will receive for your units or shares. This amount will appear in box 21 of your T5008 slip, or on a statement or summary from your investment dealer. Enter the adjusted cost base (ACB) in column 3. This amount is the cost of your units or shares, plus any expenses you incurred to acquire them, such as commissions and trading fees. If the ACB does not appear on any information slips received, consult your records of the acquisition of the units or shares. Enter in column 4 the outlays and expenses you incurred when selling your units or shares, such as redemption fees and commissions. Your capital gain or loss in column 5 is calculated by subtracting the total of your property's ACB, and any outlays and expenses incurred to sell your property, from the proceeds of disposition.
This chart explains how to report the capital gains (or losses) and other amounts shown on certain information slips.
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