As per the Canada Revenue Agency (CRA):
If you disposed of qualified farm of fishing property (QFFP), qualified small business corporation shares (QSBCS), qualified farm property (QFP), or qualified fishing property (QXP) you may be eligible for the LCGE.
If you disposed of qualifying property during the year and want to claim your exemption, you will need to fill out Form T-657, Calculation Of Capital Gains Exemption. The capital gain deduction will appear on line 25400.
To do so, you will need to know your:
- Proceeds of Disposition — The proceeds of disposition is the price you sold the property for, plus any fees associated with the sale.
- Adjusted Cost Base — The adjusted cost base is the price you paid for it plus any capital improvements that you made.
You will also need to know what portion, if any, of the exemption you may have used in the past. If you don’t know this information, you can contact the CRA and they will be able to provide this information. It can also be found on your CRA’s My Account online.
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