New for 2025 for capital gains
This page generally includes updates to the Canada Revenue Agency’s services as well as proposed, announced and enacted tax changes for the year. When tax changes become law as proposed or announced, they will be effective for the tax year or as of the dates given.
If draft legislation is finalized or new legislation is introduced after publishing in January 2026, information will be available at Line 12700 – Taxable capital gains. The forms related to capital gains have been updated to reflect the changes noted on this page, as needed.
Alternative minimum tax (AMT)
Under proposed changes for 2024 and subsequent years, the calculation of adjusted taxable income for AMT purposes has changed. For additional information and to calculate your federal tax payable under AMT, see Form T691, Alternative Minimum Tax.
Capital gains deferral
Under proposed changes, for qualifying dispositions after December 31, 2024, the definition of eligible small business corporation has been expanded and the period to acquire replacement shares has increased:
- The limit to the carrying value of assets of an eligible small business corporation (including related entities) has increased to $100 million.
- An eligible small business corporation share of an individual no longer needs to be a common share.
- You now have until the end of the calendar year following the year of a qualifying disposition to acquire the replacement share.
Capital gains deduction for qualifying cooperative conversions
Under proposed changes, starting in 2024, a capital gains deduction is available to individuals on the sale of shares under a qualifying cooperative conversion. This means you may be able to claim a deduction when you sell your business to employees through a worker cooperative corporation if all the conditions are met.