Capital gains

Capital gains and losses

You have a capital gain when you sell, or are considered to have sold, a capital property for more than its adjusted cost base plus the expenses or outlays you incurred to sell the property.

You have a capital loss when you sell, or are considered to have sold, non-depreciable capital property for less than its adjusted cost base plus the expenses or outlays you incurred to sell the property.

For more information, see Line 127 - Capital gains.

Qualified fishing property

If you have a taxable capital gain from the sale of qualified fishing property, you may be able to claim a capital gains deduction.

Qualified fishing property is certain property owned by you, your spouse, common-law partner, or by a family-fishing partnership in which you, your spouse, or common-law partner holds an interest. Real property or eligible capital property is qualified fishing property only if it is used to carry on a fishing business in Canada by:

• you, your spouse or common-law partner, or any of your parents or children;
  
  
• the beneficiary of a personal trust, or the spouse or common-law partner, parent, or child of such a beneficiary;
  
  
• a family-fishing corporation where any of the above persons owns a share of the corporation; or
  
  
• a family-fishing partnership where any of the above persons (except a family-fishing corporation) owns an interest in the partnership.

For more information on qualified fishing property, real property, and eligible capital property, see Chapter 6 of the Fishing Income guide.

Transfer of fishing property

You may be able to postpone paying tax on any taxable capital gain and any recapture of capital cost allowance when you transfer your Canadian fishing property to your child, spouse, or common-law partner.

For more information on transfers of fishing property, see Chapter 6 of the Fishing Income guide.

Forms and publications

• Fishing Income guide (T4004)

Related topics

• Line 127 - Capital gains