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 refers you to the appropriate section of Federal Income Tax and Benefit information when necessary.
This chart explains how to report the capital gains (or losses) and other amounts shown on certain information slips on Schedule 3. 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 instead of a T5008 slip. Read more below about how to complete Schedule 3.
The T3 slip 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, use the Exchange Rate.
Completing your Schedule 3
Generally, capital gains or losses shown on a T3, T4PS, T5 or T5013 slip 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 line 10700 or line 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 that you received or will receive for your units or shares. This amount is shown 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.
| Type of slip | Description of amounts to report | Line on Schedule 3 | Other information |
|---|---|---|---|
| T3 | Box 21, Capital gains – This is your total capital gain from a trust. Report the difference between this amount and the amount in box 30. The footnotes area may show that all or part of the amount in box 21 is non-business income for foreign tax credit purposes. Enter the footnoted amount on line 43300 of Form T2209, Federal Foreign Tax Credits, and use it to calculate your foreign tax credit. |
Line 17600 | |
| T3 | Box 30, Capital gains eligible for deduction – If there is an amount in this box, the footnotes area will show that all or part of your gain is from dispositions of:
The footnotes area will also indicate whether the gain relates to a disposition in the current or a previous tax year of the trust. If the disposition occurred in the current tax year of the trust, the capital gain should be included in your capital gains being reported for the current year on Form T657. Capital gains realized by the trust and allocated to you in 2023, are included on line 10700 or line 11000, as applicable. Use Part 3r and Part 3s (as applicable) on Form T657. If the disposition occurred in one of the four previous tax years of the trust, these gains should not be included in Part 3r or Part 3s of Form T657. Use the applicable parts of Form T657 (determined on page 5 of Form T657) to calculate the capital gains deduction for gains relating to dispositions that occurred in the 2019 to 2022 tax years (corresponding to the trust’s year of disposition indicated in the footnotes area). Example: You received a T3 slip relating to the trust’s 2023 tax year. The footnotes area indicates that the capital gain shown in box 30 is related to the disposition of QFFP that occurred in 2021. Based on the questions on page 5 of Form T657, you should use Part 3n and Part 3o to calculate the capital gains deduction that you may claim in respect of these capital gains. |
Line 10700 Line 11000 |
|
| T3 | Box 37, Insurance segregated fund capital losses | Line 17600 | See note 1 |
| T3 | Box 42, Amount resulting in cost base adjustment | N/A | See note 4 |
| T4PS | Box 34, Capital gains or losses | Line 17400 | See note 2 |
| T5 | Box 18, Capital gains dividends | Line 17400 | |
| T5013 | Box 151, Capital gains (losses) | Line 17400 | |
| T5013 | Box 153, Qualified smallbusiness corporation shares (QSBCS) capital gains (losses) amount eligible for the capital gains exemption | Line 10700 | |
| T5013 | Box 154, Qualified farm or fishing property (QFFP) capital gains (losses) amount eligible for the capital gains exemption | Line 11000 | |
| T5013 | Box 155, Capital gains (losses) from QFFP mortgage foreclosures and conditional sales repossessions eligible for the capital gains deduction | Line 12400 | |
| T5013 | Boxes 152, 163, 165, 166, and 222 to 225, Capital gains reserves – These are your capital gains reserves from the partnership. | N/A | See note 3 |
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