Line 12700 - Taxable capital gains
You may have a capital gain (or loss) when you dispose of property, such as when you sell real estate, which may include your principal residence or shares (including mutual funds). You may also have a capital gain or capital loss if you are considered to have disposed of property (see the definition of deemed disposition on Schedule 3).
If you sold your principal residence in the year, complete the "Principal residence" section of Schedule 3. For more information, see Guide T4037, Capital Gains.
NEW! Property flipping
Starting January 1, 2023, any gain from the disposition of a housing unit (including a rental property) located in Canada, or a right to acquire a housing unit located in Canada, that you owned or held for less than 365 consecutive days before its disposition is deemed to be business income and not a capital gain, unless the property was already considered inventory or the disposition occurred due to, or in anticipation of, certain life events.
If the property is not considered a flipped property, whether the income from selling the property should be treated as business income or as a capital gain depends on the specific details of the situation. If the disposition is considered:
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a capital gain, complete Schedule 3
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business income, complete Form T2125, Statement of Business or Professional Activities For more information about flipped property and life-event exceptions, go to canada.ca/cra-property-flipping or see Schedule 3.
For more information about business income, go to canada.ca/taxes-business-income or see Guide T4002, Self-employed Business, Professional, Commission, Farming, and Fishing Income.
Crypto-assets
If you dispose of crypto-assets and other similar properties other than in the course of a business that you operate or an adventure in the nature of trade, the CRA may consider any resulting gain or loss to be a capital gain or capital loss.
For more information about crypto-assets, go to canada.ca/cra-cryptocurrency-guide.
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See the Taxnet Pro™ T1 Line-by-Line Guide (subscription required): Line 12700 - Taxable capital gains |
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