Why didn't adding capital gains change the refund calculation?

I made a large RRSP contribution to offset capital gains from the sale of shares in a small business corporation. After entering all information except capital gains, TurboTax showed a large refund. When I added the capital gains, the refund amount didn't change. It seems like there is no additional tax being calculated on this capital gains income.

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1 Replies

Returning Member

May 1, 2023 7:29:12 AM

You capital gain seems to be a QSBCS shares, therefore there are exempt from capital gain (assuming you have still room left)

https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-25400-capital-gains-deduction/what-deduction-limit.html

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Why didn't adding capital gains change the refund calculation?