Thank you for choosing TurboTax.
As per CRA, the difference between purchase price and sale price for capital properties is referred to as Capital gains or losses. In case the sale price is higher than the purchase price, you have incurred a Capital Gain, whereas, if the sale price is lower than the purchase price that is recorded as Capital loss. The capital gains are claimed by completing schedule 3 for the current tax year, to report eligible capital gains from all sources. Once calculated, 50% of the total is transferred to line 12700 of your tax return as your taxable capital gain amount.
Just as with capital gains, capital losses are reported using schedule 3, and allowable losses may be used to offset gains within the current year, up to three years prior, or carried forward to future years, depending on the situation.
For example; capital gains on personal property items are earned and reported, but capital losses on these items may not be eligible. Losses are somewhat more restricted than gains, and carrying losses forward requires a calculation of a capital loss adjustment factor, which depends on the carrying year. Despite the additional calculations, since capital losses apply directly to offset taxable capital gains, the tax savings may be worth consideration.
For further clarification please refer to our blog: Claiming Capital Gains and Losses and How to Calculate a Capital Gain or Loss
You can also contact us or if you prefer you can reach us on social media through Facebook or Twitter.
Sign In
Canada (English)
EN
