Example of how to calculate your capital gain


In 2020, Mario sold 400 shares of XYZ Public Corporation of Canada for $6,500. He received the full proceeds at the time of the sale and paid a commission of $60. The adjusted cost base of the shares is $4,000. Mario calculates his capital gain as follows:

Proceeds of disposition
(Adjusted cost base  plus outlays and expenses on disposition)
Capital gain

$6,500 - ($4,000 + $60) = $2,440

Because only 1/2 of the capital gain is taxable, Mario completes section 3 of Schedule 3 and reports $1,220 as his taxable capital gain at line 12700 on his income tax and benefit return.

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