Hi Grace, if you are not going to receive a T5008 slip from your investment firm, then in the online software you would click "Income" then scroll down to "Investments" and then select "Capital Gains and Deductions Profile." At this point you would select the top checkbox, "Sold stocks, bonds, real estate, other capital property, or sold qualified small business corporation shares and/or qualified farm property and you have a capital gain or loss to report." If you have a spouse or common law partner, that the gain/loss is being shared with, you would want to click the check box for yourself and your spouse. When you hit continue, it may bring you to "Capital Gains Summary." If it does, click "Enter new dispositions." If you don't see the Summary page, it might take you right to "Capital Gains." For "Type of Capital property" you would select "Mutual Funds/Publicly traded shares/stocks." You would select here how much would be claimed by your spouse or partner, if applicable. The main fields you need to enter are the Proceeds of Disposition, Adjusted Cost Base (cost of the shares, plus applicable broker fees associated with the purchase) and Outlays and Expenses (broker fees associated with the sale of the share/stock).
The capital gain/loss will be added to any gains shown on your tax slips (T3, T5, etc). If, once these are totaled, there is a net capital gain, then the capital gain is multiplied by 50% and this amount is shown as income on line 127 of the T1. If the bottom line is a net loss, then it will not be applied anywhere on that year's tax return, as capital losses can only be applied against capital gains. The amount is still remembered and reported to CRA, as it is part of the Schedule 3 of the tax return...any capital losses can be applied to capital gains for up to 3 years prior, or can be carried forward indefinitely and be applied against capital gains on future tax returns. If you do have capital gains this year, you may wish to confirm if you have any capital losses from prior years that can be applied to reduce the tax owing. If you are unsure, you can contact Canada Revenue at 1-800-959-8281 or, if you have access to My Account on the CRA website, you can check for net losses yourself.
http://www.cra-arc.gc.ca/capitalgains/
