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 your taxable capital gain amount.
To calculate your capital gain, you need to know the following 3 amounts:
- Proceeds of disposition (what you sold it for)
- Adjusted Cost Base (what you purchased it for, plus the legal fees at the time)
- Outlays and Expenses (the legal fees that were associated with the sale)
When calculating the capital gain on the sale of capital property that was made in a foreign currency convert the above amounts to Canadian dollars using the Exchange Rates.
To enter your transactions using TurboTax Online Free, follow the steps below:
- On the left-hand side of your return, click on the "Income" tab.
- Next, click on the "T-Slips" tab.
- Scroll down and find "T5008 Securities Transactions", click on it and you should be presented with the T5008 - Summary page.
- You want to click on Enter New T5008 and you should then be able to enter the information about your security transactions. Make sure the "Type of Income" box on the screen is set to Capital Gains.
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If you do not receive a T5008 slip or summary, you can enter the dispositions individually or as one transaction in the Capital Gains & Capital Gains Deduction Profile. You can access this from the sidebar of TurboTax and clicking on Income > Investments > Capital Gains & Capital Gains Deduction Profile. Check the box next to Sold stocks, bonds, real estate, other capital property, and continue until you reach the Capital Gains page. Here you can enter more details on your dispositions such as dates, number of units, etc.