When to report a capital gain or loss

Report the disposition of capital property in the calendar year (January to December) you sell, or are considered to have sold, the property.

Regardless of whether or not the sale of a capital property results in a capital gain or loss, you have to file an income tax and benefit return to report the transaction (even if you do not have to pay tax). This rule also applies when you report the taxable part of any capital gains reserve you deducted in 2023.

On this page

• Do you own a business?
• Are you a member of a partnership?
• What records do you have to keep?
• Completing your Schedule 3

Do you own a business?

If you own a business that has a fiscal year end other than December 31, you still report the sale of a capital property in the calendar year the sale takes place.

Are you a member of a partnership?

If you are a member of a partnership, it is possible that your partnership has a fiscal year end other than December 31. If the partnership sells capital property during its fiscal year, you generally report your share of any capital gain or loss in the calendar year in which that fiscal year ends.

For more information on capital gains and losses, when you are a member of a partnership, see Capital gains or losses from a Partnership.

What records do you have to keep?

You will need information from your records or supporting documents to calculate your capital gains or capital losses for the year. You do not need to include these documents with your income tax and benefit return as proof of any sale or purchase of capital property. However, it is important that you keep these documents in case the CRA asks to see them later.

If you own qualified farm or fishing property or qualified small business corporation shares, you should also keep a record of your investment income and expenses in case you decide to claim a capital gains deduction in the year of sale.

You will need these amounts to calculate the cumulative net investment loss (CNIL) component of the capital gains deduction. You can use Form T936, Calculation of Cumulative Net Investment Loss (CNIL) to December 31, 2024, for this purpose.

In addition, you should keep a record of the fair market value of the property on the date you:

• inherit it
• receive it as a gift
• change its use

Report your capital gain or loss

Your capital gain or loss is reported on the Schedule 3. To find out where and how to report your capital dispositions, see Completing schedule 3.

Forms and publications

• Guide T4037, Capital Gains  
• Guide T4002, Self-employed Business, Professional, Commission, Farming, and Fishing Income
• Guide RC4060, Farming Income and the AgriStability and AgriInvest Programs Guide
• Schedule 3, Capital Gains or Losses
• T5013, Statement of Partnership Income
• Income Tax Package
• Form T2091(IND), Designation of a Property as a Principal Residence by an Individual (Other Than a Personal Trust)

Related topics

• Sole proprietorships and partnerships
• Depreciable property
• Line 12200 – Net partnership income (limited or non-active partners only)
• Lines 12599 and 12600 – Rental Income
• Lines 13499 to 14300 – Self-employment income
• How long should you keep your income tax records?
• Principal residence and other real estate