Do I report foreign capital gains from sale of stock in a foreign investment account in the capital gains section or in the foreign income section?

[TurboTaxKim · Accepted solution]

Dispositions or sells of foreign shares are entered as Capital Gains. The amounts must be converted to Canadian Dollars and can be entered on either the Foreign Slip (found under T-slips) or in the Capital Gains & Capital Gains Deduction Profile (found under Investments). 

• Entering on the Foreign Income page you can simply enter the exchange rate and TurboTax will do the conversion for you. However, your gain/loss must be calculated prior to entering it in the appropriate box.

• Entering under the Capital Gains profile allows you to be more detailed in your reporting. You can enter your ACB, Proceeds of Disposition and Outlays & Expenses, and TurboTax will do the calculating for you. 

Either method of reporting will transfer the information to the Schedule 3 and 50% of any gains will appear in the tax summary on Line 127.