Claiming a capital gains reserve

When you sell a capital property, you usually receive full payment at that time. However, sometimes you receive the amount over a number of years.

For example, you sell a capital property for $50,000 and receive $10,000 when you sell it and the remaining $40,000 over the next four years.

If this happens, you may be able to claim a reserve. Usually, a reserve allows you to report a portion of the capital gain in the year you receive the proceeds of disposition.


You may be able to claim a capital gains deduction and reduce your taxable income. For more information, see Line 25400 – Capital gains deduction.

For more information on reserves, see:

Forms and publications

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