When do you have a capital gain or loss?

Usually, you have a capital gain or loss when you sell or are considered to have sold capital property. The following are examples of cases where you are considered to have sold capital property:

  • You exchange one property for another.
  • You give property (other than cash) as a gift.
  • Shares or other securities in your name are converted.
  • You settle or cancel a debt owed to you.
  • You transfer certain property to a trust.
  • Your property is expropriated.
  • Your property is stolen.
  • Your property is destroyed.
  • An option that you hold to buy or sell property expires.
  • A corporation redeems or cancels shares or other securities that you hold (you will usually be considered to have received a dividend, the amount of which will be shown on a T5 slip).
  • You change all or part of the property's use.
  • You leave Canada [see Leaving Canada (emigrants)].
  • The owner dies (see What to do when someone has died).

Also, depending on your own situation, you may or may not have a capital gain (or loss) when you dispose of personal-use property or Canadian securities.

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