Reserve on disposition - T2017

If you made a capital gain but have not received the whole proceeds from this gain, you must indicate the reserve on disposition of capital gain that you want to use for the current year.

To declare this reserve on disposition, follow the procedure below:

1. On the  left side menu on the "  Interview "  tab, select " Interview setup".

2. On the right-hand side of the screen, go to the " Investment income and expenses" group, check for " Capital gains (or losses) and capital gain history" and click on " Next" at the bottom of the page.

3. Return to the  left side menu on the "  Interview "  tab, select the topic " Capital gains (or losses) & ABIL".

4. On the screen to your right, choose the option that applies to your situation and enter the information about the transaction. It is  mandatory to indicate the " Date of disposition" as well as the " Total  proceeds from sale", you should specify the  ''Adjusted cost base of shares or property'' as you enter the cost of the  ''Expenses incurred in making the disposition''.

5- On the line for " Reserve on disposition", enter the amount of the capital gain reserve desired for the taxation year.

The program will generate federal Schedule 3 and federal Form T2017.

For more information regarding the reserve on disposition, please consult the following links:

https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4037.html

https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-254-capital-gains-deduction.html

ID: 20191218172317CA.xml

Webpage: KPA330-20191218172317CA.htm

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