Line 12700 - Taxable capital gains
Usually, you have a capital gain or loss when you sell or dispose of capital property. Capital property may include real estate, such as your principal residence, or shares like mutual funds.
You may also have a capital gain or loss if you are considered to have disposed of property (see the definition of "deemed disposition" on Schedule 3, Capital Gains or Losses). If you sold your principal residence in 2024, complete Part 1 of Schedule 3. For more information, see Guide T4037, Capital Gains.
If you sold or disposed of property in 2024 and your taxable capital gains for the year were more than your allowable capital losses, you have to include the difference on line 12700 of your return.
Flipped property
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-crypto-assets.
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