,canada ,rev5ue ,ag5cy ,t#djcg ,capital ,ga9s #bjjf ,9 ,"o ,volume ,pr9t ,pages #b-de ,brl ,pages ;i-;x & #a-beg ,9dex ,brl page ,2f y />t """"""""""""""""""""""""""" #a ,is ? guide = y8 """""""""""""""""" #a ,:at if y ne$ help8 """"""""""""""" #c ,:at's new = #bjjf8 """"""""""""""""" #e ,ta# ( ,3t5ts """"""""""""""""""""""" #g ,gloss>y """"""""""""""""""""""""""" #ac ,*apt] #a--,g5]al 9=m,n """""""""""" #ci ,:5 d y h a capital ga9 or loss8 #dj ,4pos+ ( ,canadian securities "" #da ,4pos+ ( p]sonal-use prop]ty 79clud+ yr pr9cipal resid;e7 #dc ,p]sonal-use prop]ty """"""""" #dc ,pr9cipal resid;e """""""""""" #dd ,:5 d y report a capital ga9 or loss8 """""""""""""""""""""""""" #dd ,d y [n a busi;s8 """""""""""""" #de ,>e y a memb] (a "pn]%ip8 """""" #df ,calculat+ yr capital ga9 or loss """"""""""""""""""""""""""" #df ,:at happ5s if y h a capital ga98 """"""""""""""""""""""""""" #ea ;i ,9dex ,claim+ a res]ve """"""""""""""" #ea ,:o c claim a res]ve8 """""""" #eb ,h[ d y calculate & report a res]ve8 """""""""""""""""""" #eb ,res]ve =a gift ( securities #ee ,claim+ a capital ga9s deduc;n #ef ,:at is a capital ga9s deduc;n8 """"""""""""""""""" #ef ,: capital ga9s >e eligi# =! capital ga9s deduc;n8 """""" #eg ,:o is eligi# 6claim ! capital ga9s deduc;n8 """""" #eh ,:at is ! capital ga9s deduc;n limit8 """"""""""""" #ei ,h[ d y claim ! capital ga9s deduc;n8 """"""""""""""""""" #fj ,:at happ5s if y h a capital loss8 """""""""""""""""""""""""" #fj ,:at records d y h 6keep8 """""""" #fa ,*apt] #b--,complet+ ,s*$ule #c """" #fc ,qualifi$ small busi;s corpor,n %>es """"""""""""""""""""""""""" #fd ,capital ga9s deduc;n """""""""" #fe ;ii ,9dex ,qualifi$ f>m & fi%+ prop]ty """"" #fe ,capital ga9s deduc;n """""""""" #fg ,publicly trad$ %>es1 mutual fund units & o!r %>es """""""""" #fg ,employee secur;y op;ns """""""" #gj ,annual limit on def]r$ op;n b5efits """""""""""""""""""" #gc ,adju/$ co/ base 7,,acb7 ( eligi# securities """""""""" #ge ,4posi;n ( eligi# securities #gf ,don,ns "u employee op;n agree;ts """"""""""""""""""" #gh ,r1l e/ate1 deprecia# prop]ty1 & o!r prop]ties """""""""""""""""" #gi ,r1l e/ate """"""""""""""""""""" #hj ,deprecia# prop]ty """"""""""""" #hb ,capital ga9 """"""""""""""""" #hb ,recapture ( ,,cca & t]m9al losses """"""""""""""""""""" #hc ,bonds1 deb5tures1 promissory notes1 & o!r simil> prop]ties "" #hi ,tr1sury bills 7;,t-bills7 & /ripp$ bonds """"""""""""""""" #ij ;iii ,9dex ,bad debts """"""""""""""""""""" #ib ,=eign ex*ange ga9s & losses """ #id ,o!r mortgage =eclosures & 3di;nal sales reposses.ns """""" #ie ,o!r tax implic,ns """"""""""" #if ,p]sonal-use prop]ty """"""""""""" #ig ,li/$ p]sonal prop]ty 7,,lpp7 """ #ajb ,9=m,n slips--,capital ga9s 7or losses7 """"""""""""""""""""""" #ajd ,*>t #a--,report+ capital ga9s 7or losses7 & o!r am.ts f 9=m,n slips """"""""""""""""" #aje ,*apt] #c--,special rules & o!r transac;ns """""""""""""""""""""" #aac ,adju/$ co/ base 7,,acb7 """""""" #aac ,id5tical prop]ties """"""""""" #aac ,prop]ty = : y fil$ ,=m ,t#ffd or ,t#ffd7,s5iors7 """""""""" #abb ,*>t #b--,calculat+ ! revis$ adju/$ co/ base 7,,acb7 (a fl[-"? 5t;y """"""""""""""""" #abc ,/ep #a--,reduc;n (! ,,acb "" #abd ,/ep #b--,revis$ ,,acb """""" #abf ;iv ,9dex ,*>t #c--,calculat+ ! revis$ adju/$ co/ base 7,,acb7 ( capital prop]ty 7o!r ?an a fl[-"? 5t;y7 """""""""""""""" #abf ,prop]ty y 9h]it or rcv z a gift """""""""""""""""""""""" #abh ,sell+ a build+ 9 #bjjf """"""""" #abi ,sell+ "p (a prop]ty """""""""" #aca ,capital ga9s def]ral = 9ve/;t 9 small busi;s """""""""""""""""" #acb ,eligi# small busi;s corpor,n %>es """""""""""""""""""""""" #acc ,calculat+ ! capital ga9s def]ral """"""""""""""""""""" #ace ,,acb reduc;n """"""""""""""""" #acg ,o!r transac;ns """"""""""""""""" #acg ,eligi# capital prop]ty """"""" #ach ,elec;n on 4posi;ns ( eligi# capital prop]ty """"""""""" #ach ,"pn]%ips """"""""""""""""""""" #adj ,capital ga9s reduc;n 7fl[- "? 5t;y7 """""""""""""""""" #adb ,capital ga9s deduc;n """"""" #adb ;v ,9dex ,pur*ase ( replace;t prop]ty "" #adc ,transf]s ( prop]ty 6yr sp\se or -mon-law "pn] or 6a tru/ = yr sp\se or -mon-law "pn] #add ,o!r transf]s ( prop]ty """"""" #adh ,f>m or fi%+ prop]ty """""""" #adi ,elec;ns """""""""""""""""""" #aej ,sell+ or donat+ c]tifi$ ,canadian cultural prop]ty """" #aea ,gifts ( ecologic,y s5sitive l& #aeb ,*apt] #d--,fl[-"? 5tities """""""" #aee ,:at is a fl[-"? 5t;y8 """""""""" #aee ,exempt capital ga9s bal.e 7,,ecgb7 """""""""""""""""""""" #aef ,4pos+ ( yr %>es (1 or 9t]e/ in1 a fl[-"? 5t;y """"""""""""""""" #aei ,*apt] #e--,capital losses """""""" #afa ,9clu.n rate 7,,ir7 """"""""""""" #afc ,h[ d y apply yr #bjjf net capital loss 6previ\s ye>s8 """ #afe ,h[ d y apply yr net capital losses ( o!r ye>s 6#bjjf8 """"" #afg ;vi ,9dex ,*>t #d--,apply+ net capital losses ( o!r ye>s 6#bjjf "" #aga ,losses 9curr$ 2f ,may #bc1 #aihe """"""""""""""""""""" #agb ,*>t #e--,apply+ net capital losses ( o!r ye>s 6#bjjf 7= cli5ts )a pre-#aihf capital loss bal.e7 """"""""""""""""" #agd ,/ep #a--,pre-#aihf capital loss bal.e availa# = #bjjf #agd ,/ep #b--,apply+ net capital losses ( o!r ye>s 6#bjjf "" #agf ,/ep #c--,calculat+ yr bal.e ( unappli$ net capital losses ( o!r ye>s availa# 6c>ry =w>d """""""""""""""" #agh ,/ep #a--,pre-#aihf capital loss bal.e availa# = #bjjf #ahc ,/ep #b--,apply+ net capital losses ( o!r ye>s 6#bjjf "" #ahd ,/ep #c--,calculat+ yr bal.e ( unappli$ net capital ;vii ,9dex losses ( o!r ye>s availa# 6c>ry =w>d """""""""""""""" #ahg ,apply+ li/$ p]sonal prop]ty 7,,lpp7 losses """""""""""""""" #aia ,sup]ficial loss """""""""""""""" #aid ,re/rict$ f>m loss 7,,rfl7 """""" #aig ,all[a# busi;s 9ve/;t loss 7,,abil7 """""""""""""""""""""" #bjj ,:at is a busi;s 9ve/;t loss8 #bjj ,:at happ5s :5 y 9cur an ,,abil8 """"""""""""""""""""" #bjc ,*>t #f--,h[ 6claim an all[a# busi;s 9ve/;t loss """""""""" #bje ,summ>y ( loss applic,n rules """ #bji ,*apt] #f--,pr9cipal resid;e """""" #bae ,:at is yr pr9cipal resid;e8 """" #bae ,designat+ a pr9cipal resid;e #bag ,c y h m ?an "o pr9cipal resid;e8 """""""""""""""""""" #bah ,4pos+ ( yr pr9cipal resid;e """" #bbj ,=m ,t#bjia7,,ind71 ,design,n (a ,prop]ty z a ,pr9cipal ;viii ,9dex ,resid;e 0an ,9dividual 7,o!r ,?an a ,p]sonal ,tru/7 #bba ,did y or yr sp\se or -mon-law "pn] file ,=m ,t#ffd or ,t#ffd7,s5iors78 """""""""""" #bbb ,*anges 9 use """"""""""""""""""" #bbd ,special situ,ns """""""""""""" #bbf ,*ang+ all yr pr9cipal resid;e 6a r5tal or busi;s prop]ty """"""""""""""""""" #bbf ,*ang+ yr r5tal or busi;s prop]ty 6a pr9cipal resid;e """"""""""""""""""" #bbh ,*ang+ "p ( yr pr9cipal resid;e 6a r5tal or busi;s prop]ty """"""""""""""""""" #bcj ,f>m & fi%+ prop]ty """"""""""""" #bcb ,example--,4pos+ (a pr9cipal resid;e "ply us$ = e>n+ 9come """"""""""""""""""""""" #bcb ,9dex """"""""""""""""""""""""""""" #bda ,ref];es """""""""""""""""""""""""" #bdi ,=ms """""""""""""""""""""""""""" #bdi ;ix ,9dex ,9=m,n ,circul>s """""""""""""""" #bej ,9=m,n ,docu;t """""""""""""""""" #bej ,9t]pret,n ,bullet9s """""""""""" #bea ,yr op9ion c.ts6 """""""""""""""""" #bed ,3v5i5t electronic s]vices = 9dividuals """""""""""""""""""""" #bee ,file yr [n return ''' """""""""" #bee ,use a tax return prep>,n s]vice ''' """""""""""""""""""" #bef ,view or *ange yr tax 9=m,n ''' #bef ,make yr pay;t onl9e ''' """""""" #beg ;x ,transcrib]'s note3 7,front cov]7 ,canada ,rev5ue ,ag5cy ,capital ,ga9s #bjjf ,t#djcg ,rev4 #jf _+www.cra.gc.ca_: --------------------------------------#b ,2f y />t ,is ? guide = y8 ,we expla9 ! mo/ -mon 9come tax situ,ns 9 ? guide4 ,use ? guide 6get 9=m,n on capital ga9s or capital losses 9 #bjjf4 ,y g5],y h a capital ga9 or loss :5"e y sell1 or >e 3sid]$ 6h sold1 capital prop]ty4 ,capital prop]ty is def9$ on page #e4 ,use ,s*$ule #c1 ,capital ,ga9s 7or ,losses7 9 #bjjf1 6calculate & report yr taxa# capital ga9s or net capital loss4 #a ,2f y />t a#b ,if yr only capital ga9s or losses >e ^? %[n on 9=m,n slips 7,t#c1 ,t#d;,,ps1 ,t#e1 ,t#ejac or ,t#ejac;,a71 & y did n file ,=m ,t#ffd or ,t#ffd7,s5iors71 ,elec;n 6,report a ,capital ,ga9 on ,prop]ty ,[n$ at ! ,5d ( ,febru>y #bb1 #aiid1 y d n h 6r1d ! 5tire guide4 ,see 8,*>t #a--,report+ capital ga9s 7or losses7 & o!r am.ts f 9=m,n slips0 on page #ai 6f9d \ h[ 6report ^! am.ts4 ,if y sell ! units1 %>es1 or securities = : y 7 issu$ an 9=m,n slip1 y w h 6report a capital ga9 or loss4 ,see 8,publicly trad$ %>es1 mutual fund units & o!r %>es0 on page #ac4 ,if y >e a f>m] & y sell eligi# capital prop]ty t is qualifi$ f>m prop]ty or f>ml& 9 #bjjf t 9cludes yr pr9cipal resid;e1 see guide ,t#djjc1 ,f>m+ ,9come1 guide ,,rc#djfj1 ,f>m+ ,9come &! ,,cais ,program1 or ,,rc#ddjh1 ,f>m+ ,9come &! ,,cais ,program ,h>moniz$ ,guide4 ,guide ,,rc#djfj is applica# 6,canadian ,agricultural #b ,2f y />t b#b ,9come ,/abiliz,n ,program 7,,cais7 "picipants 9 ,ont>io1 ,alb]ta & ,pr9ce ,$w>d ,isl& :ile guide ,,rc#ddjh applies 6,,cais "picipants 9 all o!r prov9ces & ,yukon4 ,if y >e a non-resid5t1 emigrant1 or new resid5t ( ,canada1 y %d see :i*"e "o (! foll[+ guides applies 6yr situ,n3 --,t#djee1 ,newcom]s 6,canada2 --,t#djef1 ,emigrants & ,9come ,tax2 or --,t#djeh1 ,non-,resid5ts & ,9come ,tax4 ,:at if y ne$ help8 ,if y ne$ help af r1d+ ? guide1 y c visit \r ,web site at _+www.cra.gc.ca/capitalgains_:1 or y c 3tact u at #a-hjj-iei-hbha4 ,"?\t ? guide1 we ref] 6o!r =ms & public,ns t give m specific 9=m,n relat$ 6capital ga9s & losses4 #c ,2f y />t c#b ,9 ! sec;n call$ 8,ref];es0 on page #de1 y w f9d a li/+ (! di6]5t types ( =ms & public,ns we ref] 6mo/ (t54 ,if y ne$ any ( ^! =ms or public,ns1 y c get !m f \r ,web site at _+www.cra.gc.ca/forms_: or 0call+ #a-hjj-iei-bbba4 #d ,:at's new = #bjjf8 #c ,transcrib]'s note3 7,! >1s \tl9$ 9 r$ 9 ? guide >e 9dicat$ by 8,/>t \tl9e0 at ! 2g9n+ & 8,5d \tl9e0 at ! 5d ( ea* *ange47 ,/>t \tl9e ,capital ga9s ( fi%]s--,"u propos$ legisl,n1 ! sale or transf] af ,may #a1 #bjjf1 ( prop]ty us$ 9 a family fi%+ busi;s w 2 eligi# =! 4#ejj1jjj capital ga9s exemp;n4 ,= m 9=m,n1 see page #ab4 ,res]ve ,all[$ on ,c]ta9 ,4posi;ns ( ,fi%+ ,assets--,"u propos$ legisl,n1 ! #aj-ye> res]ve p]iod is 2+ ext5d$ 69clude transf]s ( fi%+ prop]ty 0an 9dividual 6! 9dividual's *4 ,= m 9=m,n on res]ves1 see page #aa4 ,don,ns ( publicly-li/$ securities1 /ock op;ns & ecologic,y s5sitive l& --,= gifts made af ,may #a1 #bjjf1 ( publicly-li/$ securities & ecologic,y s5sitive l&1 ! #e ,:at's new = #bjjf8 a#c capital ga9s 9clu.n rate w 2 z]o4 ,? w 9clude securities acquir$ "u an op;n agree;t4 ,= m 9=m,n1 see page #aj4 ,non-capital losses--,non-capital losses1 f>m losses & re/rict$ f>m losses >is+ 9 tax,n ye>s 5d+ af #bjje c 2 c>ri$ =w>d .#bj ye>s 9/1d ( #aj4 ,? ext5.n 6! c>ry=w>d p]iod does n apply 6a non-capital loss >is+ f an all[a# busi;s 9ve/;t loss 7,,abil7 h["e4 ,= m 9=m,n1 see page #cf4 ,5d \tl9e ,if y h a visual impair;t1 y c get \r public,ns & yr p]sonaliz$ correspond;e 9 brl1 l>ge pr9t1 or etext 7;,,cd or diskette71 or on audio cassette or ,,mp#c4 ,= details1 visit \r ,web site at _+www.cra.gc.ca/alternate_: or call #a-hjj-iei-bbba4 #f ,ta# ( ,3t5ts #d ,page ,gloss>y """""""""""""""""""""""""""" #e ,*apt] #a--,g5]al 9=m,n """"""""""""" #i ,:5 d y h a capital ga9 or loss8 "" #i ,4pos+ ( ,canadian securities """ #i ,4pos+ ( p]sonal-use prop]ty 79clud+ yr pr9cipal resid;e7 #aj ,:5 d y report a capital ga9 or loss8 """""""""""""""""""""""""" #aj ,calculat+ yr capital ga9 or loss """"""""""""""""""""""""""" #aj ,:at happ5s if y h a capital ga98 """"""""""""""""""""""""""" #aa ,claim+ a res]ve """"""""""""""" #aa ,claim+ a capital ga9s deduc;n #ab ,:at happ5s if y h a capital loss """"""""""""""""""""""""""" #ab ,:at records d y h 6keep8 """""""" #ab ,*apt] #b--,complet+ ,s*$ule #c """" #ac ,qualifi$ small busi;s corpor,n %>es """"""""""""""""""""""""""" #ac ,qualifi$ f>m & fi%+ prop]ty """"" #ac #g ,ta# ( 3t5ts a#d ,publicly trad$ %>es1 mutual fund units & o!r %>es """""""""" #ac ,employee secur;y op;ns """""""" #ad ,r1l e/ate1 deprecia# prop]ty1 & o!r prop]ties """""""""""""""""" #ae ,r1l e/ate """"""""""""""""""""" #ae ,deprecia# prop]ty """"""""""""" #af ,bonds1 deb5tures1 promissory notes1 & o!r simil> prop]ties "" #ag ,tr1sury bills 7;,t-bills7 & /ripp$ bonds """"""""""""""""" #ag ,bad debts """"""""""""""""""""" #ag ,=eign ex*ange ga9s & losses """ #ah ,o!r mortgage =eclosures & 3di;nal sales reposses.ns """""" #ah ,p]sonal-use prop]ty """"""""""""" #ah ,li/$ p]sonal prop]ty 7,,lpp7 """" #ai ,9=m,n slips--,capital ga9s 7or losses7 """""""""""""""""""""""" #ai ,*>t #a--,report+ capital ga9s 7or losses7 & o!r am.ts f 9=m,n slips """""""""""""""""" #ai #h ,ta# ( 3t5ts b#d ,*apt] #c--,special rules & o!r transac;ns """"""""""""""""""""""" #bj ,adju/$ co/ base 7,,acb7 """"""""" #bj ,prop]ty = : y fil$ ,=m ,t#ffd or ,t#ffd7,s5iors7 """"""""""" #ba ,*>t #b--,calculat+ ! revis$ adju/$ co/ base 7,,acb7 (a fl[-"? 5t;y """""""""""""""""" #bb ,*>t #c--,calculat+ ! revis$ adju/$ co/ base 7,,acb7 ( capital prop]ty 7o!r ?an a fl[-"? 5t;y7 """"""""""""""""" #bc ,prop]ty y 9h]it or rcv z a gift """"""""""""""""""""""""" #bc ,sell+ a build+ 9 #bjjf """""""""" #bc ,sell+ "p (a prop]ty """"""""""" #bc ,capital ga9s def]ral = 9ve/;t 9 small busi;s """"""""""""""""""" #bd ,eligi# small busi;s corpor,n %>es """"""""""""""""""""""""" #bd ,calculat+ ! capital ga9s def]ral """""""""""""""""""""" #bd ,,acb reduc;n """""""""""""""""" #bd #i ,ta# ( 3t5ts c#d ,o!r transac;ns """""""""""""""""" #be ,eligi# capital prop]ty """""""" #be ,"pn]%ips """""""""""""""""""""" #be ,pur*ase ( replace;t prop]ty """ #be ,transf]s ( prop]ty 6yr sp\se or -mon-law "pn] or 6a tru/ = yr sp\se or -mon-law "pn] "" #bf ,o!r transf]s ( prop]ty """""""" #bf ,sell+ or donat+ c]tifi$ ,canadian cultural prop]ty """"" #bg ,gifts ( ecologic,y s5sitive l& "" #bg ,*apt] #d--,fl[-"? 5tities """"""""" #bg ,:at is a fl[-"? 5t;y8 """"""""""" #bg ,exempt capital ga9s bal.e 7,,ecgb7 """"""""""""""""""""""" #bg ,*apt] #e--,capital losses """"""""" #bh ,9clu.n rate 7,,ir7 """""""""""""" #bh ,h[ d y apply yr #bjjf net capital loss 6previ\s ye>s8 """" #bi ,h[ d y apply yr net capital losses ( o!r ye>s 6#bjjf8 """""" #bi ,*>t #d--,apply+ net capital losses ( o!r ye>s to """"""""" #cj #aj ,ta# ( 3t5ts d#d ,*>t #e--,apply+ net capital losses ( o!r ye>s 6#bjjf 7= cli5ts )a pre-#aihf capital loss bal.e7 """""""""""""""""" #ca ,apply+ li/$ p]sonal prop]ty 7,,lpp7 losses """"""""""""""""" #cd ,sup]ficial loss """"""""""""""""" #ce ,re/rict$ f>m loss 7,,rfl7 """"""" #ce ,all[a# busi;s 9ve/;t loss 7,,abil7 """"""""""""""""""""""" #cf ,*>t #f--,h[ 6claim an all[a# busi;s 9ve/;t loss """"""""""" #cg ,summ>y ( loss applic,n rules """" #ch ,*apt] #f--,pr9cipal resid;e """"""" #ch ,:at is yr pr9cipal resid;e8 """"" #ch ,designat+ a pr9cipal resid;e "" #ci ,c y h m ?an "o pr9cipal resid;e8 """"""""""""""""""""" #ci ,4pos+ ( yr pr9cipal resid;e """"" #ci ,=m ,t#bjia7,,ind71 ,design,n (a ,prop]ty z a ,pr9cipal ,resid;e 0an ,9dividual 7,o!r ,?an a ,p]sonal ,tru/7 #ci #aa ,ta# ( 3t5ts e#d ,did y or yr sp\se or -mon-law "pn] file ,=m ,t#ffd or ,t#ffd7,s5iors78 """"""""""""" #dj ,*anges 9 use """""""""""""""""""" #dj ,special situ,ns """"""""""""""" #dj ,f>m & fi%+ prop]ty """""""""""""" #da ,example--,4pos+ (a pr9cipal resid;e "ply us$ = e>n+ 9come "" #db ,9dex """""""""""""""""""""""""""""" #dd ,ref];es """"""""""""""""""""""""""" #de #ab ,gloss>y #e ,? gloss>y describes1 9 a g5]al way1 te*nical t]ms t we use 9 ? guide4 ,:5"e practical1 we def9e te*nical t]ms 9 detail 9 ! applica# *apt]s4 ,note ,"?\t ? guide1 we use ! t]ms .sell1 .sold1 .buy1 & .b"\ 6describe mo/ capital transac;ns4 ,h["e1 ! 9=m,n 9 ? guide al applies 6o!r 4posi;ns or acquisi;ns1 s* z :5 y give or rcv a gift4 ,:5 r1d+ ? guide1 y c sub/itute ! t]ms .4pos$ .( or .acquir$ = .sold or .b"\1 if !y m a3urately describe yr situ,n4 ,a2revi,ns--,! foll[+ is a li/ ( "s (! a2revi,ns t we use 9 ? guide3 ,,abil--,all[a# busi;s 9ve/;t loss ,,acb--,adju/$ co/ base ,,cca--,capital co/ all[.e ,,cnil--,cumulative net 9ve/;t loss ,,fmv--,fair m>ket value #ac ,gloss>y a#e ,,lpp--,li/$ p]sonal prop]ty ,,rfl--,re/rict$ f>m loss ,,ucc--,undepreciat$ capital co/ ,adju/$ co/ base 7,,acb7--usu,y ! co/ (a prop]ty plus any exp5ses 6acquire x1 s* z -mis.ns & legal fees4 ,! co/ (a capital prop]ty is xs actual or deem$ co/1 dep5d+ on ! type ( prop]ty & h[ y acquir$ x4 ,x al 9cludes capital exp5ditures1 s* z ! co/ ( a4i;ns & improve;ts 6! prop]ty4 ,y _c add curr5t exp5ses1 s* z ma9t5.e & repair co/s1 6! co/ base (a prop]ty4 ,= m 9=m,n on ,,acb1 see ,9t]pret,n ,bullet9 ,,it-#def1 ,capital ,prop]ty-- ,"s ,adju/;ts 6,co/ ,base1 & xs ,special ,rel1se4 ,advantage--see ! def9i;n ( ..,eligi# am.t (! .gift on page #f4 ,all[a# capital loss--is yr capital loss =! ye> multipli$ 0! 9clu.n rate = t ye>4 ,= #bjja & subsequ5t ye>s1 ! 9clu.n rate is "o-half4 #ad ,gloss>y b#e ,>m's l5g? transac;n--a transac;n 2t p]sons :o ea* acts 9 8 or h] [n self- 9t]e/4 ,relat$ p]sons >e n 3sid]$ 6d1l ) ea* o!r at >m's l5g?4 ,relat$ p]sons 9clude 9dividuals 3nect$ 0a blood rel,n%ip1 m>riage or -mon-law "pn]%ip1 or adop;n 7legal or 9 fact74 ,al1 a corpor,n &a %>ehold] :o 3trols ! corpor,n >e relat$4 ,unrelat$ p]sons usu,y d1l ) ea* o!r at >m's l5g?4 ,h["e1 ? miy c#e 0"o or m corpor,ns describ$ 9 p>agraph c71 or 0any -b9,n (! abv2 b7 a corpor,n t wd 2 3troll$ 0"o p]son if t "o p]son [n$ all ! %>es ( any corpor,n t >e [n$ 0any non- resid5t p]son1 0any public corpor,n 7o!r ?an a prescrib$ v5ture capital corpor,n71 or 0a corpor,n describ$ 9 p>agraph c72 or c7 a corpor,n1 a class (! %>es ( capital /ock ( : is li/$ on a prescrib$ /ock ex*ange4 ,canadian secur;y--is3 --a %>e (! capital /ock (a corpor,n resid5t 9 ,canada2 --a unit (a mutual fund tru/2 or --a bond1 deb5ture1 bill1 note1 mortgage1 hypo!c>y claim1 or simil> oblig,n issu$ 0a p]son resid5t 9 ,canada4 ,prescrib$ securities 7def9$ on page #g7 >e n 3sid]$ 6be ,canadian securities4 #af ,gloss>y d#e ,capital co/ all[.e 7,,cca7--in ! ye> y buy a 8deprecia# prop]ty0 7def9$ on page #f71 s* z a build+1 y _c deduct xs full co/4 ,h["e1 s9ce ? type ( prop]ty we>s \ or 2comes obsolete ov] "t1 y c deduct xs capital co/ ov] a p]iod ( s"eal ye>s4 ,? deduc;n is call$ ,,cca4 ,:5 we talk ab ,,cca1 a ref];e is (t5 made 6.class4 ,y usu,y gr\p deprecia# prop]ties 96classes4 ,y h 6base yr ,,cca claim on ! rate assign$ 6ea* class ( prop]ty4 ,capital ga9--y h a capital ga9 :5 y sell1 or >e 3sid]$ 6h sold1 a capital prop]ty = .m ?an ! total ( xs adju/$ co/ base &! \tlays & exp5ses 9curr$ 6sell ! prop]ty4 ,! t]m 8\tlays & exp5ses0 is def9$ on page #g4 ,capital loss--y h a capital loss :5 y sell1 or >e 3sid]$ 6h sold1 a capital prop]ty = .less ?an ! total ( xs adju/$ co/ base &! \tlays & exp5ses 9curr$ 6sell ! prop]ty4 ,! t]m 8\tlays & exp5ses0 is def9$ on page #g4 #ag ,gloss>y e#e ,capital prop]ty--9cludes deprecia# prop]ty1 & any prop]ty :1 if sold1 wd result 9 a capital ga9 or a capital loss4 ,y usu,y buy x = 9ve/;t purposes or 6e>n 9come4 ,capital prop]ty .does .n 9clude ! trad+ assets (a busi;s1 s* z 9v5tory4 ,"s -mon types ( capital prop]ty 9clude3 --cottages2 --securities1 s* z /ocks1 bonds1 & units (a mutual fund tru/2 & --l&1 build+s1 & equip;t y use 9 a busi;s or a r5tal op],n4 --------------------------------------#f ,-mon-law "pn]--? applies 6a p]son :o is .n .yr .sp\se1 ) :om y >e liv+ & h a 3jugal rel,n%ip1 & 6:om at l1/ ."o (! foll[+ situ,ns applies4 ,he or %e3 a7 has be5 liv+ ) y 9 s* a rel,n%ip = at l1/ #ab 3t9u\s mon?s2 b7 is ! p>5t ( yr * 0bir? or adop;n2 or c7 has cu/ody & 3trol ( yr * 7or _h cu/ody & 3trol immly 2f ! * #ah ,gloss>y a#f turn$ #ai ye>s ( age7 & yr * is :olly dep5d5t on t p]son = support4 ,9 a4i;n1 an 9dividual immly 2comes yr -mon-law "pn] if y previ\sly liv$ tgr 9 a 3jugal rel,n%ip = at l1/ twelve 3t9u\s mon?s & y h resum$ liv+ tgr 9 s* a rel,n%ip4 .,"u .propos$ .*anges1 ? 3di;n w no l;g] exi/4 ,! e6ect ( ? propos$ *ange is t a p]son ,7o!r ?an a p]son describ$ 9 3di;n b7 or c7 abv7' w 2 yr -mon-law "pn] only af yr .curr5t rel,n%ip ) t p]son has la/$ at l1/ #ab 3t9u\s mon?s4 ,? propos$ *ange w apply 6#bjja & lat] ye>s4 ,ref];es to 8#ab 3t9u\s mon?s0 9 ? def9i;n 9clude any p]iod t y 7 sep>at$ = less ?an #ij "ds 2c (a br1kd[n 9 ! rel,n%ip4 ,deem$ acquisi;n--expres.n us$ :5 y >e 3sid]$ 6h acquir$ prop]ty1 ev5 ?\< y did n actu,y buy x4 #ai ,gloss>y b#f ,deem$ co/--ref]s 6! price ( prop]ty y >e 3sid]$ 6h acquir$1 ev5 ?\< y did n actu,y buy x4 ,deem$ 4posi;n--expres.n us$ :5 y >e 3sid]$ 6h 4pos$ ( prop]ty1 ev5 ?\< y did n actu,y sell x4 ,deem$ proce$s ( 4posi;n--expres.n us$ :5 y >e 3sid]$ 6h rcvd an am.t =! 4posi;n ( prop]ty1 ev5 ?\< y did n actu,y rcv ! am.t4 ,deprecia# prop]ty--usu,y capital prop]ty us$ 6e>n 9come f a busi;s or prop]ty4 ,! capital co/ c 2 writt5 (f z ,,cca ov] a numb] ( ye>s4 ,4posi;n 74pose (7--usu,y an ev5t or transac;n ": y give up posses.n1 3trol1 & all o!r aspects ( prop]ty [n]%ip4 ,eligi# am.t (! gift--"u propos$ legisl,n1 ? is g5],y ! am.t 0: ! fair m>ket value 7,,fmv7 (! gift$ prop]ty exce$s ! am.t ( an .advantage1 if any1 rcvd or receiva# 9 ! future =! gift4 ,= m 9=m,n1 see pamphlet ,p#aac1 ,gifts & ,9come ,tax4 #bj ,gloss>y c#f ,"u propos$ legisl,n1 ! .advantage is g5],y ! total value ( all prop]ty1 s]vices1 -p5s,n1 or o!r b5efits t y >e 5titl$ 6z "pial 3sid],n =1 or 9 gratitude =1 ! gift4 ,! .advantage may 2 3t+5t or receiva# 9 ! future1 ei 6y or a p]son or "pn]%ip n d1l+ at >m's l5g? ) y4 ,"u propos$ legisl,n1 = gifts made af ,febru>y #ah1 #bjjc1 ! advantage al 9cludes any limit$-rec\rse debt 9 respect (! gift at ! "t x 0 made4 ,= example1 "! may 2 a limit$-rec\rse debt if ! prop]ty 0 acquir$ "? a tax %elt] t is a gift+ >range;t4 ,9 ? case1 ! eligi# am.t (! gift w 2 report$ 9 box #ac ( ,=m ,t#ejjc1 ,/ate;t ( ,tax ,%elt] ,9=m,n4 ,= m 9=m,n on gift+ >range;ts & tax %elt]s1 see ,t#djfh1 ,guide =! ,t#ejac ,"pn]%ip ,9=m,n ,return4 ,eligi# active busi;s corpor,n--g5],y1 ? is a taxa# ,canadian corpor,n1 ": all or sub/anti,y all (! fair m>ket value 7,,fmv7 ( xs assets >e us$ #ba ,gloss>y d#f pr9cip,y 9 an active busi;s c>ri$ on prim>ily 9 ,canada 0! corpor,n or 0a relat$ active busi;s corpor,n :ile ! 9ve/or holds ! %>es1 ..or = at l1/ #gcj "ds (! [n]%ip .p]iod4 ,x c al 2 %>es (1 &/or a debt issu$ by1 o!r relat$ active busi;s corpor,ns or a -b9,n ( s* assets1 %>es1 or debt4 ,note ,an eligi# active busi;s corpor,n .does .n 9clude3 --a profes.nal corpor,n2 --a specifi$ f9ancial 9/itu;n2 --a corpor,n ^: pr9cipal busi;s is l1s+1 r5t+1 develop+1 or sell+ r1l prop]ty t x [ns or any -b9,n ( ^! activities2 & --a corpor,n ": m ?an #ej@3p (! ,,fmv ( xs prop]ty 7net ( debts 9curr$ 6acquire ! prop]ty7 is attributa# 6r1l prop]ty4 #bb ,gloss>y e#f ,eligi# capital prop]ty--prop]ty t does n physic,y exi/ b gives y a la/+ economic b5efit4 ,examples ( ? k9d ( prop]ty >e gdwill1 cu/om] li/s1 tradem>ks1 & milk quotas4 ,eligi# small busi;s corpor,n--g5],y1 ? is a ,canadian-3troll$ private corpor,n1 ": all or sub/anti,y all (! ,,fmv ( xs assets >e us$ pr9cip,y 9 an active busi;s t is c>ri$ on prim>ily 9 ,canada 0! corpor,n or an eligi# small busi;s corpor,n relat$ 6x4 ,x c al 2 %>es (1 &/or a debt issu$ by1 o!r relat$ eligi# small busi;s corpor,ns or a -b9,n ( s* assets1 %>es1 or debt4 ,! issu+ corpor,n m/ 2 an eligi# small busi;s corpor,n at ! "t ! %>es 7 issu$4 ,note ,an eligi# small busi;s corpor,n .does .n 9clude3 --a profes.nal corpor,n2 --a specifi$ f9ancial 9/itu;n2 #bc ,gloss>y f#f --a corpor,n ^: pr9cipal busi;s is l1s+1 r5t+1 develop+1 or sell+ r1l prop]ty t x [ns or any -b9,n ( ^! activities2 & --a corpor,n ": m ?an #ej@3p (! ,,fmv ( xs prop]ty 7net ( debts 9curr$ 6acquire ! prop]ty7 is attributa# 6r1l prop]ty4 ,except$ gift--a gift (a %>e y made 6"s"o 7o!r ?an a private f.d,n7 ) :om y d1l at --------------------------------------#g >m's l5g?4 ,if ! donee is a *>ita# organiz,n or public f.d,n1 x w 2 an except$ gift if y d1l at >m's l5g? ) ea* director1 tru/ee1 (fic]1 & (ficial (! donee4 ,fair m>ket value 7,,fmv7--is usu,y ! hi value y c get = yr prop]ty 9 an op5 & unre/rict$ m>ket1 2t a will+ buy] &a will+ sell] :o >e act+ 9dep5d5tly ( ea* o!r4 #bd ,gloss>y a#g ,fl[-"? 5t;y--we expla9 ? t]m 9 ! sec;n call$ 8,:at is a fl[-"? 5t;y80 on page #bg 9 ,*apt] #d4 ,9clu.n rate--,g5],y1 ! 9clu.n rate = #bjjf is "o-half4 ,? m1ns t y multiply yr capital ga9 =! ye> 0? rate 6det]m9e yr taxa# capital ga94 ,simil>ly1 y multiply yr capital loss =! ye> 0"o-half 6det]m9e yr all[a# capital loss4 ,=a li/ ( previ\s ye> 9clu.n rates1 see 8,9clu.n rate 7,,ir70 on page #bh4 ,li/$ p]sonal prop]ty 7,,lpp7--is a type ( p]sonal-use prop]ty4 ,! pr9cipal di6];e 2t ,,lpp & o!r p]sonal-use prop]ties is t ,,lpp usu,y 9cr1ses 9 value ov] "t4 ,,lpp 9cludes all or any "p ( any 9t]e/ 9 or any "r 6! foll[+ prop]ties3 --pr9ts1 et*+s1 draw+s1 pa9t+s1 sculptures1 or o!r simil> "ws ( >t2 --jewell]y2 --r>e folios1 r>e manuscripts1 or r>e books2 #be ,gloss>y b#g --/amps2 & --co9s4 ,net capital loss--g5],y1 if yr all[a# capital losses >e m ?an yr taxa# capital ga9s1 ! di6];e 2t ! two 2comes "p (! calcul,n ( yr net capital loss =! ye>4 ,non->m's l5g? transac;n--a transac;n 2t p]sons :o 7 n d1l+ ) ea* o!r at >m's l5g? at ! "t (! transac;n4 ,non-qualify+ r1l prop]ty--g5],y1 non- qualify+ r1l prop]ty is r1l prop]ty t y or yr "pn]%ip 4pos$ ( af ,febru>y #aiib & 2f #aiif4 ,x al g5],y 9cludes ! foll[+ prop]ty y or yr "pn]%ip 4pos$ ( af ,febru>y #aiib & 2f #aiif1 if xs fair m>ket value is deriv$ pr9cip,y 7m ?an #ej@3p7 f r1l prop]ty3 --a %>e (a capital /ock (a corpor,n2 --an 9t]e/ 9 a "pn]%ip2 --an 9t]e/ 9 a tru/2 or --an 9t]e/ or an op;n 9 any prop]ty describ$ abv4 #bf ,gloss>y c#g ,non-qualify+ securities-->e securities y or an 9dividual's e/ate donat$ 6a 8qualifi$ donee0 7def9$ on ? page74 ,non-qualify+ securities 9clude3 --a %>e (a corpor,n ) : y or ! e/ate does n d1l at >m's l5g? af ! don,n 0 made2 --an oblig,n ( yrs or ! e/ate1 or ( any p]son or "pn]%ip ) :om y or ! e/ate does n d1l at >m's l5g? af ! don,n 0 made2 or --any o!r secur;y issu$ 0y or ! e/ate or 0any p]son or "pn]%ip ) :om y or ! e/ate does n d1l at >m's l5g? af ! don,n 0 made4 ,! abv excludes3 --%>es1 oblig,ns1 & o!r securities li/$ on a prescrib$ /ock ex*ange2 & --oblig,ns (a f9ancial 9/itu;n 6repay an am.t deposit$ )! 9/itu;n4 ,\tlays & exp5ses-->e am.ts t y 9curr$ 6sell a capital prop]ty4 ,y c #bg ,gloss>y d#g deduct \tlays & exp5ses f yr 8proce$s ( 4posi;n0 7def9$ on ? page7 :5 calculat+ yr capital ga9 or loss4 ,y _c reduce yr o!r 9come 0claim+ a deduc;n = ^! \tlays & exp5ses4 ,^! types ( exp5ses 9clude fix+-up exp5ses1 f9d]s' fees1 -mis.ns1 brok]s' fees1 surveyors' fees1 legal fees1 transf] taxes1 & adv]tis+ co/s4 ,p]sonal-use prop]ty--ref]s 6items t y [n prim>ily =! p]sonal use or 5joy;t ( yr family & yrf4 ,x 9cludes all p]sonal & h\sehold items1 s* z furniture1 automobiles1 boats1 a cottage1 & o!r simil> prop]ties4 ,prescrib$ secur;y--g5],y 9cludes3 --a %>e (a corpor,n 7o!r ?an a public corpor,n7 ^: value at ! "t y 4pose ( x -es ma9ly f r1l e/ate1 res\rce prop]ties1 or bo?2 --a bond1 deb5ture1 bill1 note1 mortgage1 or simil> oblig,n (a corpor,n 7o!r ?an a public corpor,n7 t y d n d1l ) at >m's #bh ,gloss>y e#g l5g? at any "t 2f y 4pose (! secur;y2 & --a %>e1 bond1 deb5ture1 bill1 note1 mortgage1 or simil> oblig,n y acquire f a p]son ) :om y d n d1l at >m's l5g?4 ,a prescrib$ secur;y is n 3sid]$ 6be a 8,canadian secur;y0 7def9$ on page #e74 ,proce$s ( 4posi;n--usu,y ! am.t y rcvd or w rcv = yr prop]ty4 ,9 mo/ cases1 x ref]s 6! sale price (! prop]ty4 ,? cd al 9clude -p5s,n y rcvd = prop]ty t has be5 de/roy$1 expropriat$1 or /ol54 ,public corpor,n--is a corpor,n t is resid5t 9 ,canada &3 --has a class ( %>es li/$ on a prescrib$ ,canadian /ock ex*ange2 or --is a corpor,n 7o!r ?an a prescrib$ lab\r-sponsor$ v5ture capital corpor,n7 t has elect$1 or has be5 designat$ 0! ,m9i/] ( ,n,nal ,rev5ue1 6be a public corpor,n4 ,al1 at ! "t (! elec;n or #bi ,gloss>y f#g design,n1 ! corpor,n -pli$ ) prescrib$ 3di;ns 3c]n+ ! numb] ( xs %>ehold]s1 ! 4p]sal ( [n]%ip ( xs %>es1 &! public trad+ ( xs %>es4 --------------------------------------#h ,qualifi$ donee--g5],y 9cludes3 --a regi/]$ ,canadian *>;y2 --a regi/]$ ,canadian amateur a?letic associ,n2 --a ,canadian tax-exempt h\s+ corpor,n t only provides l[-co/ h\s+ = s5iors2 --a municipal;y 9 ,canada or1 "u propos$ legisl,n1 = gifts made af ,may #h1 #bjjj1 a municipal or public body p]=m+ a func;n ( gov]n;t 9 ,canada2 --! ,unit$ ,n,ns & xs relat$ ag5cies2 --a prescrib$ univ]s;y \tside ,canada2 #cj ,gloss>y a#h --a *>ita# organiz,n \tside ,canada 6: ! ,gov]n;t ( ,canada has made a don,n 9 #bjje or #bjjf2 & --! ,gov]n;t ( ,canada1 a prov9ce1 or a t]ritory4 ,qualifi$ f>m prop]ty--is c]ta9 prop]ty y or yr sp\se or -mon-law "pn] [ns4 ,x is al c]ta9 prop]ty [n$ 0a family-f>m "pn]%ip 9 : y or yr sp\se or -mon-law "pn] holds an 9t]e/4 ,qualifi$ f>m prop]ty 9cludes3 --a %>e (! capital /ock (a family- f>m corpor,n t y or yr sp\se or -mon-law "pn] [ns2 --an 9t]e/ 9 a family-f>m "pn]%ip t y or yr sp\se or -mon-law "pn] [ns2 --r1l prop]ty1 s* z l& & build+s2 & --eligi# capital prop]ty1 s* z milk & egg quotas4 ,= m 9=m,n on :at is 3sid]$ 6be qualifi$ f>m prop]ty1 see guide ,t#djjc1 ,f>m+ ,9come1 guide ,,rc#djfj1 ,f>m+ ,9come &! ,,cais ,program1 or #ca ,gloss>y b#h ,,rc#ddjh1 ,f>m+ ,9come &! ,,cais ,program ,h>moniz$ ,guide4 ,qualifi$ fi%+ prop]ty--is c]ta9 prop]ty y or yr sp\se or -mon-law "pn] [ns4 ,x is al c]ta9 prop]ty [n$ 0a family fi%+ "pn]%ip 9 : y or yr sp\se or -mon-law "pn] holds an 9t]e/4 ,qualifi$ fi%+ prop]ty 9cludes3 --a %>e (! capital /ock (a family fi%+ corpor,n t y or yr sp\se or -mon-law "pn] [ns2 --an 9t]e/ 9 a family fi%+ "pn]%ip t y or yr sp\se or -mon-law "pn] [ns2 --r1l prop]ty1 s* z l& & fi%+ vessels2 & --eligi# capital prop]ty1 s* z fi%+ lic;es4 ,= m 9=m,n on :at is 3sid]$ 6be qualifi$ fi%+ prop]ty1 see guide ,t#djjd1 ,fi%+ ,9come4 ,qualifi$ small busi;s corpor,n %>es-- a %>e (a corpor,n w 2 3sid]$ 6be a #cb ,gloss>y c#h qualifi$ small busi;s corpor,n %>e if .all ! foll[+ 3di;ns >e met3 --at ! "t ( sale1 x 0 a %>e (! capital /ock (a small busi;s corpor,n1 & x 0 [n$ 0y1 yr sp\se or -mon-law "pn]1 or a "pn]%ip ( : y 7 a memb]2 --"?\t t "p (! #bd mon?s immly 2f ! %>e 0 4pos$ (1 :ile ! %>e 0 [n$ 0y1 a "pn]%ip ( : y 7 a memb]1 or a p]son relat$ 6y1 x 0 a %>e (a ,canadian-3troll$ private corpor,n & m ?an #ej@3p (! fair m>ket value (! assets (! corpor,n w]e3 --us$ ma9ly 9 an active busi;s c>ri$ on prim>ily 9 ,canada 0! ,canadian-3troll$ private corpor,n1 or 0a relat$ corpor,n2 --c]ta9 %>es or debts ( 3nect$ corpor,ns2 or --a -b9,n ( ^! two types ( assets2 & --"?\t ! #bd mon?s immly 2f ! %>e 0 4pos$ (1 no "o [n$ ! %>e o!r ?an y1 #cc ,gloss>y d#h a "pn]%ip ( : y 7 a memb]1 or a p]son relat$ 6y4 ,z a g5]al rule1 :5 a corpor,n has issu$ %>es af ,june #ac1 #aihh1 ei 6y1 6a "pn]%ip ( : y >e a memb]1 or 6a p]son relat$ 6y1 a special situ,n exi/s4 ,we 3sid] t1 immly 2f ! %>es 7 issu$1 !y 7 [n$ 0an unrelat$ p]son4 ,z a result1 6meet ! hold+-p]iod require;t1 ! %>es _c h be5 [n$ 0any p]son o!r ?an y1 a "pn]%ip ( : y >e a memb]1 or a p]son relat$ 6y =a #bd-mon? p]iod t 2g9s af ! %>es 7 issu$ & t 5ds :5 y sold !m4 ,h["e1 ? rule .does .n .apply 6%>es issu$3 --z pay;t = o!r %>es2 --= 4posi;ns ( %>es af ,june #ag1 #aihg1 z pay;t (a /ock divid5d2 or --in 3nec;n )a prop]ty t y1 a "pn]%ip ( : y 7 a memb]1 or a p]son relat$ 6y 4pos$ ( 6! corpor,n t issu$ ! #cd ,gloss>y e#h %>es4 ,! prop]ty 4pos$ ( m/ h 3si/$ ( ei3 --all or mo/ 7#ij@3p or m7 (! assets us$ 9 an active busi;s c>ri$ on ei 0y1 ! memb]s (! "pn]%ip ( : y 7 a memb]1 or ! p]son relat$ 6y2 or --an 9t]e/ 9 a "pn]%ip ": all or mo/ 7#ij@3p or m7 (! "pn]%ip's assets 7 us$ 9 an active busi;s c>ri$ on 0! memb]s (! "pn]%ip4 ,r1l prop]ty--prop]ty t _c 2 mov$1 s* z l& or build+s4 ,we -monly ref] 6s* prop]ty z r1l e/ate4 ,recapture--:5 y sell a deprecia# prop]ty = less ?an xs capital co/1 b = m ?an ! undepreciat$ capital co/ 7,,ucc7 9 xs class1 y d n h a capital ga94 ,h["e1 if "! is a negative ,,ucc bal.e at ! 5d (! ye>1 ? bal.e is a recapture ( capital co/ all[.e4 ,y h 69clude ? am.t 9 9come = t ye>4 ,= m 9=m,n on recapture1 see page #af4 #ce ,gloss>y #i ,small busi;s corpor,n--is a ,canadian-3troll$ private corpor,n 9 : all or mo/ 7#ij@3p or m7 (! fair m>ket value ( xs assets3 -->e us$ ma9ly 9 an active busi;s c>ri$ on prim>ily 9 ,canada 0! corpor,n or 0a relat$ corpor,n2 -->e %>es or debts ( 3nect$ corpor,ns t 7 small busi;s corpor,ns2 or -->e a -b9,n ( ^! two types ( assets4 ,sp\se--applies only 6a p]son 6:om y >e leg,y m>ri$4 ,taxa# capital ga9--is ! por;n ( yr capital ga9 t y h 6report z 9come on yr return4 ,if y r1lize a capital ga9 :5 y donate c]ta9 prop]ties 6a qualifi$ donee 7z def9$ on page #h7 o!r ?an a private f.d,n or make a don,n ( ecologic,y s5sitive l&1 special rules w apply4 ,= m 9=m,n1 see pages #aa & #bg4 #cf ,gloss>y a#i ,t]m9al loss--o3urs :5 y h an undepreciat$ bal.e 9 a class ( deprecia# prop]ty at ! 5d (! tax ye> or fiscal ye>1 & y no l;g] [n any prop]ty 9 t class4 ,y c deduct ! t]m9al loss :5 y calculate yr 9come =! ye>4 ,= m 9=m,n on t]m9al losses1 see page #af4 ,undepreciat$ capital co/ 7,,ucc7-- g5],y1 ,,ucc is equal 6! total capital co/ ( all ! prop]ties (! class .m9us ! capital co/ all[.e y claim$ 9 previ\s ye>s4 ,if y sell deprecia# prop]ty 9 a ye>1 y al h 6subtract f ! ,,ucc "o (! foll[+ two am.ts1 .:i*"e .is .less3 --! proce$s ( 4posi;n (! prop]ty 7ei actual or deem$7 .m9us ! \tlays & exp5ses 9curr$ 6sell x2 or --! capital co/ (! prop]ty4 #cg b#i #ch ,*apt] #a--,g5]al 9=m,n c#i ,? *apt] provides ! g5]al 9=m,n y ne$ 6report a capital ga9 or loss4 ,g5],y1 :5 y 4pose (a prop]ty & 5d up )a ga9 or a loss1 x may 2 tr1t$ 9 "o ( two ways3 --z a capital ga9 or loss 7.capital .transac;n72 or --z an 9come ga9 or loss 7.9come .transac;n74 ,:5 y 4pose (a prop]ty1 y ne$ 6det]m9e if ! transac;n is a capital transac;n or an 9come transac;n4 ,! facts surr.d+ ! transac;n det]m9e ! nature (! ga9 or loss4 ,= m 9=m,n on ! di6];e 2t capital & 9come transac;ns1 see ! foll[+ ,9t]pret,n ,bullet9s3 ,,it-#bah ,pr(it1 ,capital ,ga9s & ,losses ,f ! ,sale ( ,r1l ,e/ate1 ,9clud+ ,f>ml& & ,9h]it$ ,l& & ,3v].n ( ,r1l ,e/ate ,f ,capital ,prop]ty 6,9v5tory & ,vice ,v]sa2 #ci ,*apt] #a d#i ,,it-#dei ,adv5ture or ,3c]n 9 ! ,nature ( ,trade2 & ,,it-#dgi ,transac;ns 9 ,securities1 & xs ,special ,rel1se4 ,= 9=m,n on h[ 6report 9come transac;ns1 see guide ,t#djjb1 ,busi;s & ,profes.nal ,9come4 ,:5 d y h a capital ga9 or loss8 ,usu,y1 y h a capital ga9 or loss :5 y sell or >e 3sid]$ 6h sold capital prop]ty4 ,! foll[+ >e examples ( cases ": y >e 3sid]$ 6h sold capital prop]ty3 --y ex*ange "o prop]ty = ano!r2 --y give prop]ty 7o!r ?an ca%7 z a gift2 --%>es or o!r securities 9 yr "n >e 3v]t$2 --y settle or c.el a debt [$ 6y2 --y transf] c]ta9 prop]ty 6a tru/2 --yr prop]ty is expropriat$2 #dj ,*apt] #a e#i --yr prop]ty is /ol52 --yr prop]ty is de/roy$2 --an op;n t y hold 6buy or sell prop]ty expires2 --a corpor,n redeems or c.els %>es or o!r securities t y hold 7y w usu,y 2 3sid]$ 6h rcvd a divid5d1 ! am.t ( : w 2 %[n on a ,t#e slip72 --y *ange all or "p (! prop]ty's use 7see 8,*anges 9 use0 on page #dj72 --y l1ve ,canada 7see guide ,t#djef1 ,emigrants & ,9come ,tax72 or --! [n] dies 7see guide ,t#djaa1 ,prep>+ ,returns = ,dec1s$ ,p]sons74 ,4pos+ ( ,canadian securities ,if y 4pose ( ,canadian securities1 y may h an 9come ga9 or loss4 ,h["e1 9 ! ye> y 4pose ( ,canadian securities1 y c elect 6report yr ga9 or loss z a capital ga9 or loss4 ,if y make ? elec;n #da ,*apt] #a f#i =a tax ye>1 we w 3sid] e ,canadian secur;y y [n$ 9 t ye> & lat] ye>s 6be capital prop]ties4 ,a trad] or d1l] 9 securities 7o!r ?an a mutual fund tru/ or a mutual fund corpor,n7 or any"o :o 0 a non-resid5t ( ,canada :5 ! secur;y 0 sold _c make ? elec;n4 ,if a "pn]%ip [ns ,canadian securities1 ea* "pn] is tr1t$ z [n+ ! secur;y4 ,:5 ! "pn]%ip 4poses (! secur;y1 ea* "pn] c elect 6tr1t ! secur;y z capital prop]ty4 ,an elec;n 0"o "pn] w .n result 9 ea* "pn] 2+ tr1t$ z hav+ made ! elec;n4 ,6make ? elec;n1 -plete ,=m ,t#abc1 ,elec;n on ,4posi;n ( ,canadian ,securities1 & atta* x 6yr -------------------------------------#aj #bjjf return4 ,once y make ? elec;n1 y _c rev]se yr deci.n4 #db ,4pos+ ( p]sonal-use a#aj prop]ty 79clud+ yr pr9cipal resid;e7 ,mo/ p >e n a6ect$ 0! capital ga9s rules 2c ! prop]ty !y [n is = _! p]sonal use or 5joy;t4 ,p]sonal-use prop]ty ,:5 y sell p]sonal-use prop]ty1 s* z c>s & boats1 9 mo/ cases y d n 5d up )a capital ga94 ,? is 2c ? type ( prop]ty usu,y does n 9cr1se 9 value ov] ! ye>s4 ,z a result1 y may 5d up )a loss4 ,al? y h 6report any ga9 on ! sale ( p]sonal- use prop]ty1 g5],y y >e n all[$ 6claim a loss4 ,= m 9=m,n1 see 8,p]sonal-use prop]ty0 on page #ah4 #dc ,pr9cipal resid;e b#aj ,if y sell yr home = m ?an :at x co/ y1 y usu,y d n h 6report ! sale on yr return or pay tax on any ga9 z l;g z3 --yr home is yr pr9cipal resid;e2 & --y or a memb] ( yr family did n designate any o!r prop]ty z a pr9cipal resid;e :ile y [n$ yr home4 ,= m 9=m,n1 see ,*apt] #f4 ,:5 d y report a capital ga9 or loss8 ,report ! 4posi;n ( capital prop]ty 9 ! cal5d> ye> 7,janu>y 6,decemb]7 y sell1 or >e 3sid]$ 6h sold1 ! prop]ty4 ,note ,reg>d.s ( :e!r or n ! sale (a capital prop]ty results 9 a capital ga9 or loss1 y h 6file a return 6report ! transac;n 7ev5 if y d n h 6pay tax74 ,? rule al applies :5 y report ! taxa# #dd ,*apt] #a c#aj "p ( any capital ga9s res]ve y deduct$ 9 #bjje4 ,d y [n a busi;s8 ,if y [n a busi;s t has a fiscal ye> 5d o!r ?an ,decemb] #ca1 y / report ! sale (a capital prop]ty 9 ! cal5d> ye> ! sale takes place4 ,example ,paul9e [ns a small busi;s4 ,! fiscal ye> 5d = h] busi;s is ,june #cj1 #bjjf4 ,9 ,augu/ #bjjf1 %e sold a capital prop]ty t %e us$ 9 h] busi;s4 ,z a result (! sale1 %e _h a capital ga94 ,paul9e has 6report ! capital ga9 on h] return = #bjjf4 ,%e does ? ev5 ?\< ! sale took place af h] busi;s' fiscal ye> 5d date ( ,june #cj4 #de ,>e y a memb] (a "pn]%ip8 d#aj ,if y >e a memb] (a "pn]%ip1 x is possi# t yr "pn]%ip has a fiscal ye> 5d o!r ?an ,decemb] #ca4 ,if ! "pn]%ip sells capital prop]ty dur+ xs fiscal ye>1 y g5],y report yr %>e ( any capital ga9 or loss 9 ! cal5d> ye> 9 : t fiscal ye> 5ds4 ,calculat+ yr capital ga9 or loss ,6calculate any capital ga9 or loss1 y ne$ 6"k ! foll[+ ?ree am.ts3 --! proce$s ( 4posi;n2 --! adju/$ co/ base 7,,acb72 & --! \tlays & exp5ses 9curr$ 6sell yr prop]ty4 ,6calculate yr capital ga9 or loss1 subtract ! total ( yr prop]ty's ,,acb1 & any \tlays & exp5ses 9curr$ 6sell yr prop]ty1 f ! proce$s ( 4posi;n4 ,y h a capital ga9 :5 y sell1 or >e 3sid]$ 6h sold1 a capital prop]ty #df ,*apt] #a e#aj = .m ?an ! total ( xs ,,acb &! \tlays & exp5ses 9curr$ 6sell ! prop]ty4 ,example ,9 #bjjf1 ,m>io sold #djj %>es ( ,,xyz ,public ,corpor,n ( ,canada = 4#f1ejj4 ,he rcvd ! full proce$s at ! "t (! sale & pd a -mis.n ( 4#fj4 ,! adju/$ co/ base (! %>es is 4#d1jjj4 ,m>io calculates 8 capital ga9 z foll[s3 ,proce$s ( 4posi;n """"""""""""" 4#f1ejj 7,b7 ,adju/$ co/ base "" 4#d1jjj 7,c7 ,\tlays & exp5ses on 4posi;n """""""""""""" 4#fj 7,d7 ,l9e ;,b .plus l9e ;,c """""""""""""""""" 4#d1jfj 4#d1jfj 7,e7 ,capital ga9 7l9e ;,a .m9us l9e ;,d7 """"""""""" 4#b1ddj ,2c only "o-half (! capital ga9 is taxa#1 ,m>io -pletes ,s*$ule #c & reports 4#a1bbj z 8 taxa# capital ga9 on l9e #abg on 8 return4 #dg ,*apt] #a f#aj ,:5 y sell1 or >e 3sid]$ 6h sold1 a capital prop]ty = .less ?an xs ,,acb plus ! \tlays & exp5ses 9curr$ 6sell ! prop]ty1 y h a capital loss4 ,y c apply "o-half ( yr capital losses ag/ any taxa# capital ga9s 9 ! ye>4 ,= m 9=m,n on capital losses1 see ,*apt] #e4 ,use ,s*$ule #c1 ,capital ,ga9s 7or ,losses7 9 #bjjf1 6calculate & report all yr capital ga9s & losses4 ,d n 9clude any capital ga9s or losses 9 yr busi;s or prop]ty 9come1 ev5 if y us$ ! prop]ty = yr busi;s4 ,= m 9=m,n on h[ 6-plete ,s*$ule #c1 see ,*apt] #b4 ,special rules may apply if y donate any (! foll[+ prop]ties 6a qualifi$ donee 7o!r ?an a private f.d,n73 --a %>e1 debt oblig,n1 or "r li/$ on a prescrib$ /ock ex*ange2 --a %>e (! capital /ock (a mutual fund corpor,n2 --a unit (a mutual fund tru/2 #dh ,*apt] #a #aa --an 9t]e/ 9 a relat$ segregat$ fund tru/2 --a prescrib$ debt oblig,n2 & --ecologic,y s5sitive l& 79clud+ a cov5ant1 an ease;t1 or 9 ! case ( l& 9 ,quebec1 a r1l s]vitude74 ,use ,=m ,t#aagj1 ,capital ,ga9s on ,gifts ( ,c]ta9 ,capital ,prop]ty1 if y donat$ any ( ^! prop]ties & y h a capital ga94 ,5t] ! am.t y calculate on ,s*$ule #c4 ,9 mo/ cases1 = gifts made 2f ,may #b1 #bjjf1 y c calculate ! taxa# por;n (! capital ga9 on don,ns 69clude 9 yr 9come 0multiply+ ! capital ga9 0"o-qu>t]4 ,/>t \tl9e ,= gifts ( ^! prop]ties made af ,may #a1 #bjjf1 ! 9clu.n rate ( "o-qu>t] w 2 reduc$ 6z]o4 ,=m ,t#aagj %d / 2 -plet$ 6report ^! gifts4 ,5d \tl9e #di ,*apt] #a a#aa ,h["e1 9 all cases1 if y rcvd an advantage 9 respect (! gift1 "p (! capital ga9 on ! gift$ prop]ty w 2 subject 6! "o-half 9clu.n rate4 ,9 a4i;n1 ! "o-qu>t] 9clu.n rate does n apply 6capital losses y may h f s* don,ns4 ,= m 9=m,n1 see pamphlet ,p#aac1 ,gifts & ,9come ,tax4 ,note ,2f #aigb1 capital ga9s 7 n tax$4 ,"!=e1 if y sold capital prop]ty 9 #bjjf t y [n$ 2f #aigb1 y h 6apply special rules :5 y calculate yr capital ga9 or loss 6remove any capital ga9s a3ru$ 2f #aigb4 ,we d n expla9 ^! rules 9 ? guide4 ,6calculate yr ga9 or loss f sell+ prop]ty y [n$ 2f #aigb1 use ,=m ,t#aaje1 ,supple;t>y ,s*$ule = ,4posi;ns ( ,capital ,prop]ty ,acquir$ ,2f #aigb4 #ej ,:at happ5s if y h a b#aa capital ga98 ,if y h a capital ga91 y may 2 a# to3 --def] "p (! capital ga9 0claim+ a res]ve 7see ! next sec;n72 or --reduce or (fset all or a "p (! ga9 0claim+ a capital ga9s deduc;n 7see 8,claim+ a capital ga9s deduc;n0 on page #ab74 ,claim+ a res]ve ,:5 y sell a capital prop]ty1 y usu,y rcv full pay;t at t "t4 ,h["e1 "s"ts y rcv ! am.t ov] a numb] ( ye>s4 ,= example1 y sell a capital prop]ty = 4#ej1jjj & rcv 4#aj1jjj :5 y sell x &! rema9+ 4#dj1jjj ov] ! next f\r ye>s4 ,if ? happ5s1 y may 2 a# 6claim a res]ve4 ,usu,y1 a res]ve all[s y 6report a por;n (! capital ga9 9 ! ye> y rcv ! proce$s ( 4posi;n4 #ea ,:o c claim a res]ve8 c#aa ,mo/ p c claim a res]ve :5 !y 4pose (a capital prop]ty4 ,g5],y1 y ._c claim a res]ve 9 a tax ye> if y3 --w]e n a resid5t ( ,canada at ! 5d (! tax ye>1 or at any "t 9 ! foll[+ ye>2 --w]e exempt f pay+ tax at ! 5d (! tax ye>1 or at any "t 9 ! foll[+ ye>2 or --sold ! capital prop]ty 6a corpor,n t y 3trol 9 any way4 ,h[ d y calculate & report a res]ve8 ,if y claim a res]ve1 y / calculate yr capital ga9 =! ye> z ! proce$s ( 4posi;n .m9us ! adju/$ co/ base &! \tlays & exp5ses 9curr$ 6sell ! prop]ty4 ,f ?1 y deduct ! am.t ( yr res]ve =! ye>4 ,:at y 5d up ) is ! "p (! capital ga9 t y h 6report 9 ! ye> ( 4posi;n4 #eb ,*apt] #a d#aa ,6deduct a res]ve 9 any ye>1 y h 6-plete ,=m ,t#bjag1 ,summ>y ( ,res]ves on ,4posi;ns ( ,capital ,prop]ty4 ,! 9=m,n on ! back ( ,=m ,t#bjag expla9s ! limits on ! numb] ( ye>s = : y c claim a res]ve &! am.t (! res]ve y c deduct4 ,g5],y1 ! maximum p]iod ov] : mo/ res]ves c 2 claim$ is #e ye>s4 ,h["e1 a #aj ye> res]ve p]iod is provid$ 6transf]s 6yr * ( family f>m prop]ty & small busi;s corpor,n %>es1 z well z gifts ( non-qualify+ securities made 6a qualifi$ donee4 ,/>t \tl9e ,"u propos$ legisl,n1 ! #aj ye> res]ve p]iod has be5 ext5d$ 69clude transf]s ( fi%+ prop]ty 6yr *4 ,see ,=m ,t#bjag = m 9=m,n4 ,5d \tl9e ,if y claim$ a res]ve 9 ! previ\s ye>1 9clude t res]ve 9 ! calcul,n ( yr capital ga9s =! curr5t ye>4 ,= #ec ,*apt] #a e#aa example1 if y claim$ a res]ve 9 #bjje1 y h 69clude x 9 yr capital ga9s calcul,n = #bjjf4 ,claim ! new res]ve t y h calculat$ = #bjjf 9 ! appropriate >ea on ,=m ,t#bjag4 ,if y / h an am.t t is paya# 6y af #bjjf1 y may 2 a# 6calculate & claim a new res]ve4 ,h["e1 y w h 69clude x 9 yr capital ga9s calcul,n = #bjjg4 ,a capital ga9 f a res]ve br"\ 969come qualifies =! capital ga9s deduc;n .only if ! orig9al capital ga9 0 f a prop]ty eligi# =! deduc;n4 ,=a li/ ( ^! prop]ties1 see ! sec;n call$ 8,: capital ga9s >e eligi# =! capital ga9s deduc;n80 on page #ab4 ,note ,y d n h 6claim ! maximum res]ve 9 a tax ye> 7,ye> ;,a74 ,h["e1 ! am.t y claim 9 a lat] ye> 7,ye> ;,b7 _c 2 m ?an ! am.t y claim$ = t prop]ty 9 ! previ\s ye> 7,ye> ;,a74 #ed ,res]ve =a gift ( f#aa securities ,if y donate a non-qualify+ secur;y 7o!r ?an an except$ gift7 6a qualifi$ donee & h a capital ga91 y may 2 a# 6claim a res]ve 9 ord] 6po/p"o ! 9clu.n (! capital ga9 9 9come4 ,=! def9i;ns ( 8except$ gift10 8non-qualify+ secur;y10 & 8qualifi$ donee10 see ! ,gloss>y 2g9n+ on page #e4 -------------------------------------#ab ,"u propos$ legisl,n1 = gifts ( non- qualify+ securities made af ,decemb] #bj1 #bjjb1 ! res]ve y c claim ._c 2 grt] ?an ! eligi# am.t (! gift4 ,see ! def9i;n ( 8eligi# am.t (! gift0 9 ! ,gloss>y 2g9n+ on page #e4 ,y c claim ? res]ve = any tax ye> 5d+ )9 #fj mon?s (! "t y donat$ ! secur;y4 ,h["e1 y ._c claim a res]ve if ! donee 4poses (! secur;y1 or if ! secur;y c1ses 6be a non-qualify+ secur;y 2f ! 5d (! tax ye>4 ,if ? happ5s1 y w 2 3sid]$ 6h #ee ,*apt] #a a#ab made a *>ita# don,n 9 t ye>1 & y c claim ! *>ita# don,n tax cr$it4 ,if ! secur;y is n 4pos$ ( )9 ! #fj- mon? p]iod1 y w n 2 requir$ 6br+ ! res]ve back 969come 9 ! ye> foll[+ ! 5d ( t p]iod4 ,6deduct ? type ( res]ve1 y h 6-plete ,=m ,t#bjag1 ,summ>y ( ,res]ves on ,4posi;ns ( ,capital ,prop]ty4 ,claim+ a capital ga9s deduc;n ,if y h a capital ga9 on ! sale ( c]ta9 prop]ties1 y may 2 eligi# =! 4#bej1jjj life"t capital ga9s deduc;n 7"o-half (! 4#ejj1jjj capital ga9s exemp;n74 ,:at is a capital ga9s deduc;n8 ,x is a deduc;n t y c claim ag/ taxa# capital ga9s y r1liz$ f ! 4posi;n ( #ef ,*apt] #a b#ab c]ta9 capital prop]ties4 ,y c reduce yr taxa# 9come 0claim+ ? deduc;n4 ,: capital ga9s >e eligi# =! capital ga9s deduc;n8 ,y may 2 a# 6claim ! capital ga9s deduc;n on taxa# capital ga9s y h 9 #bjjf f3 --4posi;ns ( qualifi$ small busi;s corpor,n %>es2 --4posi;ns ( qualifi$ f>m prop]ty2 --a res]ve br"\ 969come 9 #bjjf1 f ei (! abv2 & ,/>t \tl9e --"u propos$ legisl,n1 4posi;ns af ,may #a1 #bjjf1 ( qualifi$ fi%+ prop]ty4 ,5d \tl9e ,note ,any capital ga9s f ! 4posi;n ( ^! prop]ties :ile y 7 a non-resid5t #eg ,*apt] #a c#ab ( ,canada .>e .n eligi# =! capital ga9s deduc;n un.s y meet ! require;ts expla9$ 9 ! next sec;n4 ,y w f9d ! def9i;ns ( 8qualifi$ f>m prop]ty01 8qualifi$ fi%+ prop]ty0 & 8qualifi$ small busi;s corpor,n %>es0 9 ! ,gloss>y on page #h4 ,:o is eligi# 6claim ! capital ga9s deduc;n8 ,y h 6be a resid5t ( ,canada "?\t #bjjf 6be eligi# 6claim ! capital ga9s deduc;n4 ,=! purposes ( ? deduc;n1 we w al 3sid] y 6be a resid5t "?\t #bjjf if3 --y 7 a resid5t ( ,canada = at l1/ "p ( #bjjf2 & --y 7 a resid5t ( ,canada "?\t #bjje or #bjjg4 ,resid5ts ( ,canada 9clude factual & deem$ resid5ts4 ,= m 9=m,n on factual & deem$ resid5ts1 see 8,2f y />t0 9 ! ,g5]al ,9come ,tax & ,b5efit #eh ,*apt] #a d#ab ,guide1 or see ,9t]pret,n ,bullet9 ,,it-#bba1 ,det]m9,n ( an ,9dividual's ,resid;e ,/atus4 ,:at is ! capital ga9s deduc;n limit8 ,= #bjjf1 if y 4pos$ ( qualifi$ small busi;s corpor,n %>es1 qualifi$ f>m prop]ty1 or1 "u propos$ legisl,n1 qualifi$ fi%+ prop]ty af ,may #a1 #bjjf1 y may 2 eligi# =! 4#ejj1jjj capital ga9s exemp;n4 ,2c y only 9clude "o-half (! capital ga9s f ^! prop]ties 9 yr taxa# 9come1 yr cumulative capital ga9s deduc;n is 4#bej1jjj 7"o-half ( 4#ejj1jjj74 ,! total ( yr capital ga9s deduc;ns f #aihe 6#bjjf = .all types ( capital prop]ties _c 2 m ?an yr cumulative life"t deduc;n ( 4#bej1jjj4 #ei ,h[ d y claim ! capital e#ab ga9s deduc;n8 ,use ,=m ,t#feg1 ,calcul,n ( ,capital ,ga9s ,deduc;n = #bjjf1 6calculate ! capital ga9s deduc;n4 ,if y h 9ve/;t 9come or 9ve/;t exp5ses 9 any ye>s f #aihh 6#bjjf1 y w al h 6-plete ,=m ,t#icf1 ,calcul,n ( ,cumulative ,net ,9ve/;t ,loss 7,,cnil7 6,decemb] #ca1 #bjjf4 ,tax ,tip ,y c claim any am.t (! capital ga9s deduc;n y want 6in a ye>1 up 6! maximum4 ,:at happ5s if y h a capital loss8 ,if y h a capital loss 9 #bjjf1 y c use x 6reduce any capital ga9s y _h 9 ! ye>1 6a bal.e ( z]o4 ,if yr capital losses >e m ?an yr capital ga9s1 y may h a net capital loss =! ye>4 ,g5],y1 #fj ,*apt] #a f#ab y c apply yr net capital losses 6taxa# capital ga9s (! ?ree prec$+ ye>s & 6taxa# capital ga9s ( future ye>s4 ,= m 9=m,n on capital losses1 see ,*apt] #e 2g9n+ on page #bh4 ,:at records d y h 6keep8 ,y w ne$ 9=m,n f yr records or v\*]s 6calculate yr capital ga9s or capital losses =! ye>4 ,y d n ne$ 69clude ^! docu;ts ) yr return z pro( ( any sale or pur*ase ( capital prop]ty4 ,h["e1 x is important t y keep ^! docu;ts 9 case we ask 6see !m lat]4 ,if y [n qualifi$ f>m prop]ty1 qualifi$ fi%+ prop]ty or qualifi$ small busi;s corpor,n %>es1 y %d al keep a record ( yr 9ve/;t 9come & exp5ses 9 case y decide 6claim a capital ga9s deduc;n 9 ! ye> ( sale4 ,y w ne$ ^! am.ts 6calculate ! cumulative net 9ve/;t loss 7,,cnil7 -pon5t (! capital ga9s deduc;n4 ,y c use ,=m ,t#icf1 #fa ,*apt] #a g#ab ,calcul,n ( ,cumulative ,net ,9ve/;t ,loss 7,,cnil7 6,decemb] #ca1 #bjjf1 = ? purpose4 -------------------------------------#ac ,9 a4i;n1 y %d keep a record (! fair m>ket value (! prop]ty on ! date y3 --9h]it x2 --rcv x z a gift2 or --*ange xs use4 #fb ,*apt] #b--,complet+ a#ac ,s*$ule #c ,? *apt] gives y 9=m,n ab h[ & ": y %d report "s (! m -mon capital transac;ns on ,s*$ule #c1 ,capital ,ga9s 7or ,losses7 9 #bjjf4 ,s*$ule #c is 9clud$ 9 ! ,g5]al 9come tax package4 ,s*$ule #c has five numb]$ columns & is divid$ 96s"eal sec;ns = report+ ! 4posi;n ( di6]5t types ( prop]ties4 ,report ea* 4posi;n 9 ! appropriate sec;n & make sure y provide ! 9=m,n reque/$ 9 all columns4 ,-plete ! bottom por;n (! s*$ule 6det]m9e yr taxa# capital ga9 or yr net capital loss4 ,if y h a taxa# capital ga91 transf] ! am.t 6l9e #abg ( yr return4 ,if y h a net capital loss1 see ,*apt] #e 2g9n+ on page #bh = 9=m,n on h[ y c apply ! loss4 ,note ,y may ne$ 6ref] 6! ,gloss>y on page #e =! def9i;n ( c]ta9 t]ms us$ 9 ? *apt]4 #fc ,qualifi$ small busi;s b#ac corpor,n %>es ,report 4posi;ns on l9es #ajf & #ajg ( ,s*$ule #c4 ,see ! def9i;n ( 8qualifi$ small busi;s corpor,n %>es0 9 ! ,gloss>y on page #h4 ,note .,d .n .report ! foll[+ transac;ns 9 ? sec;n ( ,s*$ule #c3 --! sale ( o!r %>es1 s* z publicly trad$ %>es or %>es (a =eign corpor,n2 --yr losses :5 y sell any %>es ( small busi;s corpor,ns 6a p]son ) :om y d1l at >m's l5g?4 ,= m 9=m,n1 see 8,all[a# busi;s 9ve/;t loss 7,,abil70 on page #cf2 & --any 4posi;n ( qualifi$ small busi;s corpor,n %>es if y elect 6def] ! capital ga9s t result$ f x4 ,= m 9=m,n on capital ga9s def]ral = 9ve/;t 9 small busi;s1 see page #bd4 ,report ^! #fd ,*apt] #b c#ac transac;ns on l9es #aca & #acb ( ,s*$ule #c4 ,capital ga9s deduc;n ,if y h a capital ga9 :5 y sell qualifi$ small busi;s corpor,n %>es1 y may 2 eligi# =! 4#bej1jjj life"t capital ga9s deduc;n4 ,= m 9=m,n1 see 8,claim+ a capital ga9s deduc;n0 on page #ab4 ,qualifi$ f>m & fi%+ prop]ty ,g5],y1 :5 y 4pose ( qualifi$ f>m or fi%+ prop]ty1 y report any capital ga9 or loss 9 ? sec;n ( ,s*$ule #c4 ,report 4posi;ns ( qualifi$ f>m prop]ty &1 "u propos$ legisl,n1 4posi;ns ( qualifi$ fi%+ prop]ty af ,may #a1 #bjjf1 on l9es #aji & #aaj ( ,s*$ule #c4 ,see ! def9i;ns ( 8qualifi$ f>m prop]ty0 & 8qualifi$ fi%+ prop]ty0 9 ! ,gloss>y on page #h4 #fe ,*apt] #b d#ac ,if ! capital ga9 or loss is f a mortgage =eclosure or 3di;nal sales reposses.n1 report x on l9es #abc & #abd ( ,s*$ule #c4 ,= m 9=m,n1 see 8,o!r mortgage =eclosures & 3di;nal sales reposses.ns0 on page #ah4 ,if y 4pose ( f>m or fi%+ prop]ty1 o!r ?an qualifi$ f>m or fi%+ prop]ty1 report x on l9es #acf & #ach ( ,s*$ule #c4 ,= m 9=m,n1 see 8,r1l e/ate1 deprecia# prop]ty1 & o!r prop]ties0 on page #ae4 ,special report+ 9/ruc;ns apply 6! 4posi;n ( eligi# capital prop]ty t is qualifi$ f>m or fi%+ prop]ty4 ,= m 9=m,n1 see ! *apt] call$ 8,eligi# ,capital ,exp5ditures0 9 guide ,t#djjd1 ,fi%+ ,9come1 9 guide ,t#djjc1 ,f>m+ ,9come1 guide ,,rc#djfj1 ,f>m+ ,9come &! ,,cais ,program or ,guide ,,rc#ddjh1 ,f>m+ ,9come &! ,,cais ,program ,h>moniz$ ,guide4 #ff ,capital ga9s deduc;n e#ac ,if y h a capital ga9 :5 y sell qualifi$ f>m or fi%+ prop]ty1 y may 2 eligi# =! 4#bej1jjj life"t capital ga9s deduc;n4 ,= m 9=m,n1 see 8,claim+ a capital ga9s deduc;n0 on page #ab4 ,publicly trad$ %>es1 mutual fund units & o!r %>es ,use ? sec;n 6report a capital ga9 or loss :5 y sell %>es or securities t >e n describ$ 9 any o!r sec;n ( ,s*$ule #c4 ,^! 9clude3 --units 9 a mutual fund tru/2 --publicly trad$ %>es2 --%>es t qualify z ,canadian securities or prescrib$ securities1 if !y >e n qualifi$ small busi;s corpor,n %>es or qualifi$ family f>m corpor,n %>es2 & --%>es issu$ 0=eign corpor,ns4 #fg ,*apt] #b f#ac ,report 4posi;ns ( units or %>es on l9es #aca & #acb ( ,s*$ule #c4 ,y %d al use ? sec;n if y donate any (! foll[+ prop]ties3 --%>es li/$ on a prescrib$ /ock ex*ange2 --%>es (! capital /ock (a mutual fund corpor,n2 --units 9 a mutual fund tru/2 or --9t]e/ 9 a relat$ segregat$ fund tru/4 -------------------------------------#ad ,if y donat$ any ( ^! prop]ties 6a qualifi$ donee 7o!r ?an a private f.d,n71 use ,=m ,t#aagj1 ,capital ,ga9s on ,gifts ( ,c]ta9 ,capital ,prop]ty1 6calculate ! capital ga9 6report on ,s*$ule #c4 ,= m 9=m,n1 see pamphlet ,p#aac1 ,gifts & ,9come ,tax4 ,if y sold any (! items li/$ abv 9 #bjjf1 y w rcv a ,t#ejjh slip1 ,/ate;t ( ,securities ,transac;ns1 or an a3.t /ate;t4 #fh ,*apt] #b a#ad ,y may buy & sell ! same type ( prop]ty 7= example1 units (a mutual fund tru/ or publicly trad$ %>es7 ov] a p]iod ( "t4 ,if s1 y h 6calculate ! av]age co/ ( ea* prop]ty 9 ! gr\p at ! "t ( ea* pur*ase 6det]m9e ! adju/$ co/ base 7,,acb74 ,= m 9=m,n1 see 8,adju/$ co/ base 7,,acb70 on page #bj4 ,if y report a capital ga9 f ! 4posi;n ( %>es or o!r securities = : y fil$ ,=m ,t#ffd1 ,elec;n 6,report a ,capital ,ga9 on ,prop]ty ,[n$ at ! ,5d ( ,febru>y #bb1 #aiid1 see ,*apt] #d on page #bg4 ,note ,if y [n %>es or units (a mutual fund1 y may h 6report ! foll[+ capital ga9s 7or losses73 --capital ga9s 7or losses7 y r1lize :5 y sell yr %>es or units (! mutual fund 7report ^! am.ts 9 ! 8,publicly trad$ %>es1 mutual fund units1 def]ral ( eligi# small #fi ,*apt] #b b#ad busi;s corpor,n %>es1 & o!r %>es0 >ea ( ,s*$ule #c72 & --capital ga9s r1liz$ 0! fund f xs 9ve/;t portfolio : >e !n fl[$ \ 6y4 ,= 9=m,n on h[ 6report ^! am.ts1 see 8,9=m,n slips--,capital ga9s 7or losses70 on page #ai4 ,= m 9=m,n on mutual funds1 see 9=m,n %eet ,,rc#dafi1 ,tax ,tr1t;t ( ,mutual ,funds = ,9dividuals4 ,employee secur;y op;ns ,:5 y get an op;n 6buy securities "? yr employ]1 x does n immly a6ect yr tax situ,n4 ,an op;n is an opportun;y 6buy securities at a c]ta9 price4 ,! securities "u ! op;n agree;t may 2 %>es (a corpor,n or units (a mutual fund tru/4 ,if y decide 6ex]cise yr op;n & buy ! securities at less ?an ! fair m>ket value 7,,fmv71 y w h a taxa# #gj ,*apt] #b c#ad b5efit rcvd "? employ;t4 ,! taxa# b5efit is g5],y ! di6];e 2t :at y pd =! securities &! ,,fmv at ! "t y ex]cis$ yr op;n4 ,y c reduce ! am.t (! b5efit 0any am.t y pd 6acquire ! op;n "rs4 ,note ,! taxa# b5efit 9clud$ 9 yr 9come 9 3nec;n ) an employee op;n agree;t is .n eligi# =! capital ga9s deduc;n4 ,if y buy %>es "? an employee secur;y op;n grant$ 6y 0a ,canadian-3troll$ private corpor,n 7,,ccpc7 ) : y d1l at >m's l5g?1 y d n 9clude ! taxa# b5efit 9 yr 9come 9 ! ye> y acquire ! securities4 ,y wait until ! ye> y sell ! securities4 ,= eligi# securities "u op;n agree;ts ex]cis$ 9 #bjjf t >e n grant$ 0a ,,ccpc1 an 9come def]ral (! taxa# b5efit may 2 all[a# s t y d n h 69clude ! b5efit 9 yr 9come until ! ye> y sell ! securities4 ,? def]ral is subject 6an annual 4#ajj1jjj limit1 : we expla9 9 m #ga ,*apt] #b d#ad detail 2l4 ,6qualify = ? def]ral1 y m/ 2 an eligi# employee & rcv op;ns 6acquire eligi# securities4 ,g5],y1 an eligi# employee is "o :o1 "r af ! op;n is grant$3 --d1ls at >m's-l5g? )! employ]1 ! 5t;y grant+ ! op;n1 &! 5t;y ^: eligi# securities cd 2 acquir$ "u ! op;n agree;t2 & --is n a specifi$ %>ehold] ( an 5t;y abv t is a corpor,n4 ,a specifi$ %>ehold] is g5],y "o :o [ns #aj@3p or m ( any class (a corpor,n's %>es4 ,s* an employee m/ al 2 a resid5t ( ,canada at ! "t ! op;n is ex]cis$ 6qualify =! def]ral4 ,g5],y1 an eligi# secur;y is3 --a -mon %>e (a class li/$ on a prescrib$ /ock ex*ange 9 or \tside ,canada2 or --a unit (a mutual fund tru/4 ,g5],y1 ! am.t pd 6acquire ! eligi# secur;y1 9clud+ any am.t pd #gb ,*apt] #b e#ad 6acquire ! "rs "u ! op;n agree;t1 _c 2 less ?an ! ,,fmv (! secur;y at ! "t ! op;n is grant$4 ,9 a4i;n1 ! eligi# secur;y m/ 2 a secur;y 9 respect ( : a secur;y op;n deduc;n may 2 claim$ on l9e #bdi ( yr return4 ,if y qualify =a secur;y op;n deduc;n on l9e #bdi ( yr return1 y c claim "o- half (! am.t recogniz$ z an employ;t b5efit f ! sale ( eligi# securities 9 #bjjf4 ,annual limit on def]r$ op;n b5efits ,if y >e an eligi# employee1 y c def] ! taxa# b5efit >is+ on ! acquisi;n ( eligi# securities )a ,,fmv ( up 64#ajj1jjj4 ,y c d ? annu,y 0fil+ an elec;n 9 ! =m (a lr1 2f ,janu>y #af (! ye> foll[+ ! ye> y ex]cise yr op;ns1 ) yr employ] or ! p]son :o wd 2 requir$ #gc ,*apt] #b f#ad 6file an 9=m,n return 9 respect (! acquisi;n4 ,! lr m/ 3ta9 ! foll[+ 9=m,n3 --3firm,n t y 7 a resid5t ( ,canada at ! "t (! acquisi;n2 --3firm,n t ! 4#ajj1jjj annual ve/+ limit has n be5 exce$$2 & --! am.t (! b5efit relat$ 6eligi# securities pur*as$ "u ! op;n agree;t af ,febru>y #bg1 #bjjj1 t y wi% 6def]4 ,y m/ al -plete ,=m ,t#abab1 ,/ate;t ( ,def]r$ ,secur;y ,op;ns ,b5efits1 & file x ) yr pap] return ea* ye>4 -------------------------------------#ae ,! 4#ajj1jjj limit applies 6! value (! eligi# secur;y op;ns t f/ 2come ex]cisa# 0y ea* ye> & acr all eligi# secur;y op;n plans ( yr employ]4 ,! value ( an eligi# secur;y op;n is ! ,,fmv (! eligi# secur;y at ! "t ! op;n is grant$4 ,! 9clu.n 969come (! taxa# b5efit w 2 def]r$ until ! e>li] (! ye> 9 : ! employee 4poses (! eligi# secur;y1 or ! #gd ,*apt] #b a#ae employee 7or =m] employee7 dies or 2comes a non-resid5t4 ,note ,! def]ral (! taxa# b5efit applies 6any eligi# secur;y op;n ex]cis$ 9 #bjjf1 reg>d.s ( :5 ! op;n 0 grant$ or 2came ex]cisa#4 ,adju/$ co/ base 7,,acb7 ( eligi# securities ,reg>d.s ( :5 ! eligi# secur;y op;n 0 ex]cis$1 ! ,,acb (! eligi# secur;y y pur*as$ "? an employee eligi# secur;y op;n agree;t is n ! actual price y pd = !m4 ,6calculate ! ,,acb ( yr eligi# securities1 add ! foll[+ two am.ts3 --! actual pur*ase price2 & --any am.t 9clud$ 9 yr 9come z a taxa# employee op;n b5efit =! securities 7ev5 if y claim$ a secur;y op;n deduc;n = !m74 #ge ,4posi;n ( eligi# b#ae securities ,report ! capital ga9 7or loss7 9 ! ye> y ex*ange or sell ! eligi# securities pur*as$ "? an employee eligi# secur;y op;n agree;t4 ,if ! eligi# securities >e qualifi$ small busi;s corpor,n %>es 7see page #ac71 report ! transac;n 9 ! 8,qualifi$ small busi;s corpor,n %>es0 >ea on ,s*$ule #c4 ,9 all o!r cases1 report ! transac;n 9 ! 8,publicly trad$ %>es1 mutual fund units1 def]ral ( small busi;s corpor,n %>es1 & o!r %>es0 >ea4 ,example ,9 #bjja1 ,emily1 an eligi# employee ( ,widget ,corpor,n1 rcvd an op;n 6buy #e1jjj eligi# %>es at 4#i ea*4 ,widget ,corpor,n is n a ,canadian-3troll$ private corpor,n4 ,on ,febru>y #a1 #bjjf1 ,emily ex]cis$ h] op;n 6buy ! %>es4 ,! ,,fmv (! %>es at t "t 0 4#ae #gf ,*apt] #b c#ae ea*4 ,9 #bjjg1 %e sells h] %>es = 4#bj ea*4 ,emily's tax implic,ns >e z foll[s3 .,9 .#bjja1 :5 %e rcvd ! op;n1 "! 7 no tax implic,ns4 .,9 .#bjjf1 :5 %e b"\ ! %>es1 ! taxa# b5efit on ! 5tire #e1jjj %>es %e pur*as$ is calculat$ z foll[s3 ,,fmv 7#e1jjj "ts 4#ae7 """"""" 4#ge1jjj .,m9us3 ,am.t pd 7#e1jjj "ts 4#i7 """""""""""""""""""""""" 4#de1jjj ,taxa# b5efit 7%[n 9 box #ec on ,t#d slip7 """""""""""""""""" 4#cj1jjj ,"! >e no tax implic,ns 2c %e elect$ 6def] ! taxa# b5efit >is+ f ! pur*ase ( %>es 0fil+ ,=m ,t#abab1 ,/ate;t ( ,def]r$ ,secur;y ,op;ns ,b5efits1 ) 4#cj1jjj 5t]$ on l9e #b4 #gg ,*apt] #b d#ae .,9 .#bjjg1 :5 %e sells ! %>es3 ,proce$s ( 4posi;n 7#e1jjj "ts 4#bj7 """""""""""""""""""""" 4#ajj1jjj .,m9us3 ,am.t pd 7#e1jjj "ts 4#i7 """ 4#de1jjj ,taxa# b5efit """"""""""""""" 4#cj1jjj ,total """"""""""""""" 4#ge1jjj 4#ge1jjj ,capital ga9 """""""""""""""""" 4#be1jjj ,! 4#cj1jjj taxa# b5efit t 0 def]r$ 9 #bjjf w 2 9clud$ 9 9come 9 #bjjg on l9e #aja ( h] return4 ,x w al 2 report$ on l9e #d ( ,=m ,t#abab4 ,%e w 2 a# 6claim a secur;y op;n deduc;n ( 4#ae1jjj 74#cj1jjj "ts "o-half7 on l9e #bdi ( h] #bjjg return4 ,! capital ga9 ( 4#be1jjj w 2 report$ on ,s*$ule #c4 ,don,ns "u employee op;n agree;ts ,if y donate %>es or mutual fund units 9 #bjjf "u yr employee op;n #gh ,*apt] #b e#ae agree;t 6a qualifi$ donee 7o!r ?an a private f.d,n71 use ,=m ,t#aagj1 ,capital ,ga9s on ,gifts ( ,c]ta9 ,capital ,prop]ty1 6calculate yr capital ga94 ,=a don,n made 2f ,may #b1 #bjjf1 y may qualify = an a4i;nal secur;y op;n deduc;n equal 6."o-qu>t] (! taxa# b5efit4 ,/>t \tl9e ,= don,ns made af ,may #a1 #bjjf1 ! a4i;nal deduc;n is equal 6."o-half (! taxa# b5efit4 ,5d \tl9e ,= m 9=m,n on ^! don,ns1 see pamphlet ,p#aac1 ,gifts & ,9come ,tax4 ,r1l e/ate1 deprecia# prop]ty1 & o!r prop]ties ,if y sold r1l e/ate or deprecia# prop]ty 9 #bjjf1 y h 6report yr capital ga9 or loss 9 ? sec;n4 ,report #gi ,*apt] #b f#ae 4posi;ns on l9es #acf & #ach ( ,s*$ule #c4 .,d .n .use ? sec;n 6report ! sale ( p]sonal-use prop]ty 7s* z a cottage7 or ! sale ( mortgages & o!r simil> debt oblig,ns on r1l prop]ty4 ,report ^! transac;ns "u ! sec;ns call$ 8,p]sonal- use prop]ty0 & 8,bonds1 deb5tures1 promissory notes1 & o!r simil> prop]ties10 respectively4 ,r1l e/ate ,r1l e/ate 9cludes3 --vacant l&2 --r5tal prop]ty 7bo? l& & build+s72 --f>m prop]ty1 9clud+ bo? l& & build+s 7o!r ?an qualifi$ f>m prop]ty72 & --comm]cial & 9du/rial l& & build+s4 ,= ea* r1l prop]ty y sold 9 #bjjf t 9cludes l& &a build+1 y m/3 #hj ,*apt] #b g#ae --det]m9e h[ m* (! sell+ price relates 6! l& & h[ m* is =! build+2 & --report ! sale ( yr l& & build+ sep>ately on ,s*$ule #c4 -------------------------------------#af ,6help y "u/& h[ 6report a 4posi;n ( r1l prop]ty t 9cludes l& &a build+1 see ! example on page #db4 ,if y 4pose (a build+ & 5d up )a loss1 special rules may apply4 ,"u ^! rules1 y may h 63sid] yr proce$s ( 4posi;n z an am.t o!r ?an ! actual proce$s4 ,= m 9=m,n1 see 8,sell+ a build+ 9 #bjjf0 on page #bc4 ,special rules may al apply if y 4pose (1 or >e 3sid]$ 6h 4pos$ (1 a prop]ty t 0 yr pr9cipal resid;e = #aiid = : y or yr sp\se or -mon-law "pn] has fil$ ,=m ,t#ffd or ,t#ffd7,s5iors71 ,elec;n 6,report a ,capital ,ga9 on ,prop]ty ,[n$ at ! ,5d ( ,febru>y #bb1 #aiid4 ,if ? is yr situ,n1 see 8,4pos+ ( yr pr9cipal resid;e0 on page #ci4 #ha ,deprecia# prop]ty a#af ,:5 y 4pose ( deprecia# prop]ty1 y may h a capital ga94 ,9 a4i;n1 c]ta9 rules on capital co/ all[.e 7,,cca7 may require t y add a recapture ( ,,cca 6yr 9come or all[ y 6claim a t]m9al loss4 ,y c f9d def9i;ns ( ^! & o!r t]ms us$ 9 ? sec;n 9 ! ,gloss>y on page #e4 ,capital ga9 ,usu,y1 y w h a capital ga9 on deprecia# prop]ty if y sell x = m ?an xs adju/$ co/ base plus ! \tlays & exp5ses 9curr$ 6sell ! prop]ty4 ,note ,a loss f ! sale ( deprecia# prop]ty .is .n .3sid]$ 6be a capital loss4 ,h["e1 y may 2 a# 6claim a t]m9al loss4 #hb ,recapture ( ,,cca & b#af t]m9al losses ,? sec;n w provide y )a g5]al look at ! rules =! recapture ( ,,cca & t]m9al losses4 ,note ,^! rules d n apply 6pass5g] vehicles 9 ,class #aj.a4 ,:5 y sell a deprecia# prop]ty = less ?an xs orig9al capital co/1 b = m ?an ! undepreciat$ capital co/ 7,,ucc7 9 xs class1 y .d .n .h a capital ga94 ,g5],y1 ! ,,ucc (a class is ! total capital co/ ( all ! prop]ties (! class .m9us ! ,,cca y claim$ 9 previ\s ye>s4 ,if y sell deprecia# prop]ty 9 a ye>1 y al h 6subtract f ! ,,ucc "o (! foll[+ am.ts1 .:i*"e .is .less3 --! proce$s ( 4posi;n (! prop]ty .m9us ! relat$ \tlays & exp5ses2 or #hc ,*apt] #b c#af --! capital co/ (! prop]ty at ! "t ( sale4 ,if ! ,,ucc (a class has a .negative bal.e at ! 5d (! ye>1 ? am.t is 3sid]$ 6be a recapture ( ,,cca4 ,9clude ? recapture 9 yr 9come =! ye> ( sale4 ,if ! ,,ucc (a class has a .positive bal.e at ! 5d (! ye>1 & y d n h any prop]ties left 9 t class1 ? am.t is a t]m9al loss4 ,unlike a capital loss1 y c deduct ! full am.t (! t]m9al loss f yr 9come 9 t ye>4 ,if ! bal.e =! ,,ucc (a class is .z]o at ! 5d (! ye>1 !n y d n h a recapture ( ,,cca or a t]m9al loss4 ,= m 9=m,n ab ,,cca & h[ 6report a recapture ( ,,cca or a t]m9al loss1 see ! *apt] call$ 8,capital ,co/ ,all[.e 7,,cca70 9 "o (! foll[+ guides3 --,t#djjb1 ,busi;s & ,profes.nal ,9come2 --,t#djjc1 ,f>m+ ,9come2 --,,rc#djfj1 ,f>m+ ,9come &! ,,cais ,program2 #hd ,*apt] #b d#af --,,rc#ddjh1 ,f>m+ ,9come &! ,,cais ,program ,h>moniz$ ,guide --,t#djjd1 ,fi%+ ,9come2 or --,t#djcf1 ,r5tal ,9come4 ,example ,9 #aiih1 ,pet] b"\ a piece ( ma*9]y1 at a co/ ( 4#aj1jjj1 = 8 busi;s4 ,x is ! only prop]ty 9 xs class at ! 2g9n+ ( #bjjf4 ,! class has a ,,ucc ( 4#f1jjj4 ,he sold ! piece ( ma*9]y 9 #bjjf & did n buy any o!r prop]ty 9 t class4 ,! foll[+ *>t gives y ?ree di6]5t sell+ prices 7proce$s ( 4posi;n7 6%[ h[ ,pet] wd h&le ea* situ,n 7;,a1 ;,b1 & ;,c74 ,transcrib]'s note3 7,! foll[+ is set up 9 f\r columns3 ,column #a3 ,descrip;n ,column #b3 ;,a 74#7 ,column #c3 ;,b 74#7 ,column #d3 ;,c 74#77 #he ,*apt] #b e#af ;,a ,descrip;n3 ,calcul,n ( capital ga9 ,proce$s ( 4posi;n """"""""""""" 4#d1jjj .,m9us3 ,capital co/ """""""""" 4#aj1jjj ,capital ga9 """"""""""""""""""""""" 4#j ,calcul,n ( t]m9al loss or 7recapture ( ,,cca7 ,capital co/ """""""""""""""""" 4#aj1jjj .,m9us3 ,,cca #aiih-bjje """"""" 4#d1jjj ,,ucc at ! 2g9n+ ( #bjjf """"""" 4#f1jjj ..,m9us ! less] .(3 ,! capital co/ ( 4#aj1jjj &! proce$s ( 4posi;n """""""""""" 4#d1jjj ,t]m9al loss or 7recapture ( ,,cca7 """"""""""""""""""""""" 4#b1jjj ;,b ,descrip;n3 ,calcul,n ( capital ga9 ,proce$s ( 4posi;n """"""""""""" 4#h1jjj .,m9us3 ,capital co/ """""""""" 4#aj1jjj #hf ,*apt] #b f#af ,capital ga9 """"""""""""""""""""""" 4#j ,calcul,n ( t]m9al loss or 7recapture ( ,,cca7 ,capital co/ """""""""""""""""" 4#aj1jjj .,m9us3 ,,cca #aiih-bjje """"""" 4#d1jjj ,,ucc at ! 2g9n+ ( #bjjf """"""" 4#f1jjj ..,m9us ! less] .(3 ,! capital co/ ( 4#aj1jjj &! proce$s ( 4posi;n """""""""""" 4#h1jjj ,t]m9al loss or 7recapture ( ,,cca7 """"""""""""""""""""" 74#b1jjj7 ;,c ,descrip;n3 ,calcul,n ( capital ga9 ,proce$s ( 4posi;n """""""""""" 4#ab1jjj .,m9us3 ,capital co/ """""""""" 4#aj1jjj ,capital ga9 """"""""""""""""""" 4#b1jjj #hg ,*apt] #b g#af ,calcul,n ( t]m9al loss or 7recapture ( ,,cca7 ,capital co/ """""""""""""""""" 4#aj1jjj .,m9us3 ,,cca #aiih-bjje """"""" 4#d1jjj ,,ucc at ! 2g9n+ ( #bjjf """"""" 4#f1jjj ..,m9us ! less] .(3 ,! capital co/ ( 4#aj1jjj &! proce$s ( 4posi;n """"""""""" 4#aj1jjj ,t]m9al loss or 7recapture ( ,,cca7 """"""""""""""""""""" 74#d1jjj7 ,9 .situ,n .;,a1 ,pet] does n h a capital ga94 ,h["e1 he does h a t]m9al loss ( 4#b1jjj1 : he c deduct f 8 busi;s 9come4 ,9 .situ,n .;,b1 ,pet] does n h a capital ga94 ,h["e1 he does h a recapture ( ,,cca ( 4#b1jjj t he has 69clude 9 8 busi;s 9come4 -------------------------------------#ag ,9 .situ,n .;,c1 ,pet] has a capital ga9 ( 4#b1jjj4 ,he al has a recapture #hh ,*apt] #b a#ag ( ,,cca ( 4#d1jjj t he has 69clude 9 8 busi;s 9come4 ,:5 y 4pose ( eligi# capital prop]ty1 y may qualify 6make an elec;n 6tr1t ! 4posi;n z a capital ga91 : y wd report 9 ? sec;n ( ,s*$ule #c4 ,= m 9=m,n1 see 8,eligi# capital prop]ty0 on page #be4 ,bonds1 deb5tures1 promissory notes1 & o!r simil> prop]ties ,use ? sec;n 6report capital ga9s or capital losses f ! 4posi;n ( bonds1 deb5tures1 ,tr1sury bills1 promissory notes1 & o!r prop]ties4 ,o!r prop]ties 9clude bad debts1 =eign ex*ange ga9s & losses1 & op;ns1 z well z 4c.ts1 premiums1 & bonuses on debt oblig,ns4 ,report 4posi;ns on l9es #aea & #aec ( ,s*$ule #c4 ,don,ns made 6a qualifi$ donee (a debt oblig,n or "r li/$ on a prescrib$ /ock ex*ange1 or a prescrib$ debt #hi ,*apt] #b b#ag oblig,n1 >e tr1t$ di6]5tly4 ,if y made s* a don,n1 use ,=m ,t#aagj1 ,capital ,ga9s on ,gifts ( ,c]ta9 ,capital ,prop]ty4 ,if y h a capital ga91 report ! am.t calculat$ on ,=m ,t#aagj on ,s*$ule #c4 ,? does n apply 6don,ns made 6a private f.d,n4 ,= m 9=m,n1 see pamphlet ,p#aac1 ,gifts & ,9come ,tax4 ,if y sold any (! types ( prop]ties li/$ abv 9 #bjjf1 y w rcv a ,t#ejjh slip1 ,/ate;t ( ,securities ,transac;ns1 or an a3.t /ate;t4 ,if y h b"\ & sold ! same type ( prop]ty ov] a p]iod ( "t1 a special rule may a6ect yr capital ga9 7or loss7 calcul,n4 ,= m 9=m,n1 see 8,id5tical prop]ties0 on page #bj4 ,tr1sury bills 7;,t-bills7 & /ripp$ bonds ,:5 a ;,t-bill or a /ripp$ bond is issu$ at a 4c.t & y keep x until x matures1 ! di6];e 2t ! issue price #ij ,*apt] #b c#ag &! am.t y ca% x 9 = is 3sid]$ 6be 9t]e/ t a3ru$ 6y4 ,h["e1 if y sell ! ;,t-bill or /ripp$ bond 2f x matures1 y may h a capital ga9 or loss 9 a4i;n 6! 9t]e/ a3ru$ at t "t4 ,2f y calculate yr capital ga9 or loss1 y h 6det]m9e ! am.t ( 9t]e/ a3umulat$ 6! date ( 4posi;n4 ,subtract ! 9t]e/ f ! proce$s ( 4posi;n & calculate ! capital ga9 or loss 9 ! usual way4 ,example ,jesse b"\ a ;,t-bill on ,may #a1 #bjjf1 = 4#di1jjj4 ,! ;,t-bill's t]m is #ia "ds & xs matur;y value on ,augu/ #a1 #bjjf1 is 4#ej1jjj4 ,h["e1 he sold x on ,june #ac1 #bjjf1 = 4#di1ejj4 ,! e6ective yield rate 0 #h.ai@3p4 ,jesse calculates 9t]e/ on ! ;,t-bill z foll[s3 #ia ,*apt] #b d#ag ,pur*ase price multipli$ 0,e6ective yield rate multipli$ 0,numb] ( "ds ;,t-bill held divid$ 0,numb] ( "ds 9 ! ye> sold equals ,9t]e/ 6be 9clud$ 9 9come 4#di1jjj multipli$ 0#h.ai@3p multipli$ 0#dd divid$ 0#cfe equals 4#dhc.gg ,jesse calculates 8 capital ga9 z foll[s3 ,proce$s ( 4posi;n """"""""" 4#di1ejj.jj .,m9us3 ,9t]e/ """""""""""""""" 4#dhc.gg ,net proce$s ( 4posi;n """"" 4#di1jaf.bc .,m9us3 ,adju/$ co/ base """ 4#di1jjj.jj ,capital ga9 """"""""""""""""""" 4#af.bc ,bad debts ,if a debt is [$ 6y 7o!r ?an a debt "u a mortgage or a debt result+ f a 3di;nal sales agree;t71 & x rema9s unpd af y h exhau/$ all m1ns 6collect x1 x #ib ,*apt] #b e#ag 2comes a bad debt4 ,! debt w 2 a capital loss if y acquir$ x3 --6e>n 9come f a busi;s or prop]ty2 or --z 3sid],n or pay;t =! sale ( capital prop]ty 9 an >m's l5g? transac;n4 ,9 mo/ cases1 ! capital loss is equal 6! adju/$ co/ base (! debt4 ,6claim a capital loss on a bad debt1 y h 6file an elec;n ) yr return4 ,6make ? elec;n1 write & sign a lr /at+ t y want .subsec;n .#ej7#a7 (! ,9come ,tax ,act 6apply 6! bad debt4 ,atta* ? lr 6yr return4 ,if ! debt is f ! sale ( p]sonal-use prop]ty 6a p]son ) :om y d1l at >m's l5g?1 ! situ,n is di6]5t4 ,y c claim ! capital loss 9 ! ye> t ! debt 2comes a bad debt4 ,h["e1 ! capital loss _c 2 m ?an ! capital ga9 y previ\sly report$ on ! sale (! prop]ty t cr1t$ ! debt4 #ic ,*apt] #b f#ag ,! recov]y ( any bad debt claim$ z a capital loss w 2 tr1t$ z a capital ga9 9 ! ye> ( recov]y4 ,note ,if ! bad debt 9volves a small busi;s corpor,n1 see 8,all[a# busi;s 9ve/;t loss 7,,abil70 on page #cf4 -------------------------------------#ah ,=eign ex*ange ga9s & losses ,=eign ex*ange ga9s or losses f capital transac;ns 9 =eign curr5cies >e 3sid]$ 6be capital ga9s or losses4 ,h["e1 y only h 6report ! am.t ( yr net ga9 or loss =! ye> t is .m .?an .4#bjj4 ,if ! net am.t is 4#bjj or less3 --"! is no capital ga9 or loss2 & --y d n h 6report x on yr return4 #id ,o!r mortgage =eclosures & a#ah 3di;nal sales reposses.ns ,report 4posi;ns on l9es #aed & #aee ( ,s*$ule #c4 ,y may h held a mortgage on a prop]ty b _h 6repossess ! prop]ty lat] 2c y 7 n pd all or a "p (! am.t [$ "u ! mortgage4 ,9 ? case1 y may h 6report a capital ga9 or loss4 ,! foll[+ rules al apply :5 prop]ty is repossess$ "u a 3di;nal sales agree;t4 ,= cl>;y1 a mortgagee is a p]son :o .l5ds m"oy "u a mortgage4 ,a mortgagor is a p]son :o .borr[s m"oy "u a mortgage4 ,if1 z a mortgagee1 y repossess a prop]ty 2c ! mortgagor fail$ 6pay y ! m"oy [$ "u ! mortgage1 y >e 3sid]$ 6h pur*as$ ! prop]ty4 ,at ! "t ( reposses.n1 y d n h a capital ga9 or loss4 ,any ga9 or loss w 2 po/pon$ until y sell ! prop]ty4 ,if y >e ! mortgagor & yr prop]ty is repossess$ 2c y did n pay ! m"oy [$ "u ! mortgage1 y >e 3sid]$ 6h sold ! #ie ,*apt] #b b#ah prop]ty4 ,dep5d+ on ! am.t y [$ at ! "t ( reposses.n1 y may h a capital ga91 a capital loss1 or1 9 ! case ( deprecia# prop]ty1 a t]m9al loss4 ,h["e1 if ! prop]ty is p]sonal-use prop]ty1 y _c deduct ! loss4 ,note ,if ! capital ga9 or loss is f ! 4posi;n ( qualifi$ f>m or fi%+ prop]ty1 report ! capital ga9 or loss on l9e #abd 9 ! 8,qualifi$ f>m prop]ty & qualifi$ fi%+ prop]ty0 sec;n ( ,s*$ule #c4 ,o!r tax implic,ns ,capital ga9s f a mortgage =eclosure or a 3di;nal sales reposses.n w 2 exclud$ f net 9come :5 calculat+ yr claim =! gds & s]vices tax/h>moniz$ sales tax cr$it1 ! ,canada ,* ,tax ,b5efit1 cr$its all[$ "u c]ta9 relat$ prov9cial or t]ritorial programs1 #if ,*apt] #b c#ah &! age am.t4 ,y %d al exclude ? 9come :5 calculat+ yr social b5efits repay;t4 ,p]sonal-use prop]ty ,report 4posi;ns on l9e #aeh ( ,s*$ule #c4 ,:5 y 4pose ( p]sonal-use prop]ty1 y may h a capital ga9 or loss4 ,6calculate ? ga9 or loss1 foll[ ^! rules3 --if ! adju/$ co/ base 7,,acb7 (! prop]ty is less ?an 4#a1jjj1 xs ,,acb is 3sid]$ 6be 4#a1jjj2 --if ! proce$s ( 4posi;n >e less ?an 4#a1jjj1 ! proce$s ( 4posi;n >e 3sid]$ 6be 4#a1jjj2 & --if bo? ! ,,acb &! proce$s ( 4posi;n >e 4#a1jjj or less1 y d n h a capital ga9 or a capital loss4 ,d n report ! sale on ,s*$ule #c :5 y file yr return4 ,if y >e 4pos+ ( yr pr9cipal resid;e1 see ,*apt] #f 2g9n+ on page #ch4 #ig ,*apt] #b d#ah ,note ,if y acquire p]sonal-use prop]ty = don,n 6a qualifi$ donee 7z def9$ 9 ! ,gloss>y on page #h7 9 circum/.es ": x is r1sona# 63clude t ! acquisi;n (! prop]ty relates 6an >range;t1 plan1 or s*eme promot$ 0ano!r p]son or "pn]%ip1 ! abv rules d n apply4 ,if ? situ,n applies 6y1 calculate yr capital ga9 or loss us+ ! actual ,,acb & proce$s ( 4posi;n z 4cuss$ 9 8,calculat+ yr capital ga9 or loss0 on page #aj4 ,:5 y 4pose ( p]sonal-use prop]ty t has an ,,acb or proce$s ( 4posi;n ( .m .?an .4#a1jjj1 y may h a capital ga9 or loss4 ,y h 6report any capital ga9 f 4pos+ ( p]sonal-use prop]ty4 ,h["e1 if y h a capital loss1 y usu,y ._c deduct t loss :5 y calculate yr 9come =! ye>4 ,9 a4i;n1 y _c use ! loss 6decr1se capital ga9s on o!r p]sonal-use prop]ty4 ,? is 2c if a prop]ty depreciates "? p]sonal #ih ,*apt] #b e#ah use1 ! result+ loss on xs 4posi;n is a p]sonal exp5se4 ,^! loss re/ric;ns .d .n apply3 --if y 4pos$ ( p]sonal-use prop]ty t is li/$ p]sonal prop]ty 7see ! next sec;n72 or --6a bad debt [$ 6y f ! sale (a p]sonal-use prop]ty 6a p]son ) :om y d1l at >m's l5g?4 ,= m 9=m,n1 see 8,bad debts0 on page #ag4 ,example ,jane sold ! foll[+ p]sonal-use prop]ties 9 #bjjf4 ,proce$s ( 4posi;n = ,prop]ty sold ,*9a cab9et 4#ijj ,boat 4#a1bjj ,p]sonal -put] 4#a1ejj ,adju/$ co/ base ,*9a cab9et 4#ejj ,boat 4#hej ,p]sonal -put] 4#c1bjj #ii ,*apt] #b f#ah ,\tlays & exp5ses ,*9a cab9et 4#j ,boat 4#ej ,p]sonal -put] 4#cj -------------------------------------#ai ,jane calculates ! capital ga9 or loss = ea* transac;n z foll[s3 ,calcul,n ( capital ga9 7or loss7 ,*9a cab9et ,proce$s ( 4posi;n 7.grt] .( sell+ price & 4#a1jjj7 """"""" 4#a1jjj .,m9us3 ,,acb 7.grt] .( co/ & 4#a1jjj7 .plus \tlays & exp5ses """"""" 4#a1jjj ,capital ga9 7loss7 74#a1jjj m9us 4#a1jjj7 """""""""""""""""""" 4#j ,boat ,proce$s ( 4posi;n 7.grt] .( sell+ price & 4#a1jjj7 """"""" 4#a1bjj .,m9us3 #ajj ,*apt] #b a#ai ,,acb 7.grt] .( co/ & 4#a1jjj7 .plus \tlays & exp5ses """"""" 4#a1jjj ,capital ga9 7loss7 74#a1bjj m9us 4#a1jej7 """""""""""""""""" 4#aej ,p]sonal -put] ,proce$s ( 4posi;n 7.grt] .( sell+ price & 4#a1jjj7 """"""" 4#a1ejj .,m9us3 ,,acb 7.grt] .( co/ & 4#a1jjj7 .plus \tlays & exp5ses """"""" 4#c1bcj ,capital ga9 7loss7 74#a1ejj m9us 4#c1bcj7 """""""""""""" 74#a1gcj7 ,*9a cab9et--,=! proce$s ( 4posi;n &! ,,acb1 ,jane uses 4#a1jjj1 z bo? 7 less ?an t am.t4 ,z a result1 "! is no capital ga9 or loss = ? transac;n & ,jane .does .n h 6report x on ,s*$ule #c4 ,boat--,2c ! co/ (! boat is less ?an 4#a1jjj1 ! ,,acb is 3sid]$ 6be #aja ,*apt] #b b#ai 4#a1jjj4 ,jane reports 4#aej z a capital ga94 ,p]sonal -put]--,jane's capital loss is n deducti#4 ,%e al _c use ! loss 6decr1se any o!r capital ga9s r1liz$ 9 ! ye>4 ,li/$ p]sonal prop]ty 7,,lpp7 ,report 4posi;ns on l9e #aei ( ,s*$ule #c4 ,see ! def9i;n ( 8li/$ p]sonal prop]ty 7,,lpp70 9 ! ,gloss>y on page #g4 ,6det]m9e ! value ( _m ,,lpp items1 y c h !m apprais$ 0a d1l]4 ,y c al ref] 6catalogues =! value (! prop]ties4 ,note ,,lpp ga9s d n 9clude ga9s f sell+ or donat+ c]tifi$ ,canadian cultural prop]ty 6a designat$ 9/itu;n4 ,= m 9=m,n1 see 8,sell+ or donat+ c]tifi$ ,canadian cultural prop]ty0 on #ajb ,*apt] #b c#ai page #bg4 ,2c ,,lpp is a type ( p]sonal-use prop]ty1 ! capital ga9 or loss on ! sale (! ,,lpp item is calculat$ ! same way z = p]sonal-use prop]ty4 ,= m 9=m,n ab ^! rules1 see 8,p]sonal-use prop]ty0 on page #ah4 ,if yr #bjjf ga9s f 4posi;ns ( ,,lpp >e m ?an yr #bjjf losses f s* 4posi;ns1 y c use unappli$ ,,lpp losses f #aiih & lat] ye>s 6reduce yr #bjjf ga9s4 ,if y want 6d ?1 .d .n 5t] ^! losses on l9e #bec ( yr return4 ,9/1d1 subtract ! unappli$ ,,lpp losses ( previ\s ye>s f yr #bjjf ,,llp ga9s4 ,y %d only -plete ! 8,li/$ p]sonal prop]ty0 >ea ( ,s*$ule #c if1 af do+ ^! calcul,ns1 y / h a net ,,lpp ga9 9 #bjjf4 ,if yr #bjjf losses f 4posi;ns ( ,,lpp >e m ?an yr #bjjf ga9s f s* 4posi;ns1 ! di6];e repres5ts yr ,,lpp loss =! ye>4 ,keep a record ( yr ,,lpp losses t h n expir$ s y c apply ^! losses ag/ ,,lpp ga9s 9 o!r ye>s4 ,an unappli$ #ajc ,*apt] #b d#ai ,,lpp loss expires :5 y d n use x 0! 5d (! sev5? ye> af y 9curr$ x4 ,= m 9=m,n on apply+ ,,lpp losses1 see page #cd4 ,9=m,n slips--,capital ga9s 7or losses7 ,mo/ capital ga9s & capital losses report$ on ,s*$ule #c -e f am.ts %[n on 9=m,n slips4 ,al? y report mo/ ( ^! am.ts on l9e #agd or l9e #agf 7in ! case ( ,t#c slips7 ( ,s*$ule #c1 "! >e excep;ns4 ,= example1 capital ga9s f qualifi$ small busi;s corpor,n %>es & qualifi$ f>m or fi%+ prop]ty >e eligi# =! 4#bej1jjj life"t capital ga9s deduc;n4 ,"!=e1 y h 6report ^? ga9s on l9es #ajg or #aaj1 :i*"e applies4 ,! foll[+ *>t expla9s h[ 6report ! capital ga9s 7or losses7 & o!r am.ts %[n on c]ta9 9=m,n slips4 #ajd ,*>t #a--,report+ capital e#ai ga9s 7or losses7 & o!r am.ts f 9=m,n slips ,pl1se r1d ! 9/ruc;ns on ! back ( yr slips 65sure t y claim all deduc;ns & cr$its t y may 2 5titl$ to4 ,transcrib]'s note3 7,! foll[+ is set up 9 f\r columns3 ,column #a3 ,type ( slip ,column #b3 ,descrip;n ( am.ts 6report ,column #c3 ,l9e on ,s*$ule #c ,column #d3 ,o!r 9=m,n7 ,type ( slip3 ,t#c ,descrip;n3 ,box #ba1 ,capital ga9s--,? is yr total capital ga9 f a tru/4 ,report ! di6];e 2t ? am.t &! am.t 9 box #cj4 ,! 8,footnotes0 >ea may al %[ t all or "p (! am.t 9 box #ba is non-busi;s 9come =! =eign tax cr$it4 ,5t] ! footnot$ am.t on l9e #dcc ( #aje ,*apt] #b f#ai ,s*$ule #a1 & use x 6calculate yr =eign tax cr$it4 ,l9e on ,s*$ule #c3 ,l9e #agf ,descrip;n3 ,box #bf1 ,o!r 9come--,if "! is an a/]isk 9 ? box1 ! 8,footnotes0 >ea may %[ t all or "p (! am.t is 9come f eligi# capital prop]ty/qualifi$ f>m or fi%+ prop]ty4 ,? am.t is eligi# =! capital ga9s deduc;n4 ,l9e on ,s*$ule #c3 ,l9e #agc ,o!r 9=m,n3 ,see note #b -------------------------------------#bj ,descrip;n3 ,box #cj1 ,capital ga9s eligi# = deduc;n--,if "! is an am.t 9 ? box1 ! 8,footnotes0 >ea w %[ t all or "p ( yr ga9 is f 4posi;ns (3 --qualifi$ small busi;s corpor,n %>es2 or ,l9e on s*$ule #c3 ,l9e #ajg ,o!r 9=m,n3 ,see note #a --qualifi$ f>m or fi%+ prop]ty4 #ajf ,*apt] #b a#bj ,l9e on s*$ule #c3 ,l9e #aaj ,o!r 9=m,n3 ,see note #a ,descrip;n3 ,box #cg1 ,9sur.e segregat$ fund capital losses ,l9e on s*$ule #c3 ,l9e #agf ,o!r 9=m,n3 ,see note #c ,descrip;n3 ,box #db1 ,am.t result+ 9 co/ base adju/;t ,l9e on s*$ule #c3 ,n/,a ,o!r 9=m,n3 ,see note #f ,type ( slip3 ,t#d;,,ps ,descrip;n3 ,box #cd1 ,capital ga9s or losses ,l9e on s*$ule #c3 ,l9e #agd ,o!r 9=m,n3 ,see note #d #ajg ,*apt] #b b#bj ,type ( slip3 ,t#e ,descrip;n3 ,box #ah1 ,capital ga9s divid5ds ,l9e on s*$ule #c3 ,l9e #agd ,type ( slip3 ,t#ejac or ,t#ejac;,a ,descrip;n3 ,box #bj1 ,limit$ "pn]%ip f>m+ 9come 7loss7--,? am.t may 9clude f>m+ 9come eligi# =! capital ga9s deduc;n f 4pos+ ( eligi# capital prop]ty/qualifi$ f>m prop]ty 7,,qfp74 ,l9e on s*$ule #c3 ,l9e #agc ,o!r 9=m,n3 ,see note #b ,descrip;n3 ,box #ba1 ,limit$ "pn]%ip fi%+ 9come 7loss7--,? am.t may 9clude fi%+ 9come eligi# =! capital ga9s deduc;n f 4pos+ ( eligi# capital prop]ty/qualifi$ fi%+ prop]ty af ,may #a1 #bjjf4 ,l9e on s*$ule #c3 ,l9e #agc ,o!r 9=m,n3 ,see note #b #ajh ,*apt] #b c#bj ,descrip;n3 ,box #gj1 ,capital ga9s 7losses7 ,l9e on s*$ule #c3 ,l9e #agd ,o!r 9=m,n3 ,see note #b1 ,see note #g ,descrip;n3 ,box #gj-d1 ,capital ga9s 7losses7 f ,,qfp or qualifi$ fi%+ prop]ty mortgage =eclosures & 3di;nal sales reposses.ns eligi# =! capital ga9s deduc;n ,l9e on s*$ule #c3 ,l9e #abd ,o!r 9=m,n3 ,see note #a ,descrip;n3 ,box #gj-af1 ,capital ga9s 7losses7 f a subsec;n #ad7#a.ja7 or propos$ subsec;n #ad7#a.jb7 elec;n ,l9e on s*$ule #c3 ,l9e #ach ,descrip;n3 ,box #gj-ag1 ,f>m+ or fi%+ 9come eligi# =! capital ga9s deduc;n f ! 4posi;n ( eligi# capital #aji ,*apt] #b d#bj prop]ty t is ,,qfp or qualifi$ fi%+ prop]ty ,l9e on s*$ule #c3 ,l9e #agc ,o!r 9=m,n3 ,see note #a1 ,see note #b ,descrip;n3 ,boxes #ga 6#ga-h1 ,capital ga9s res]ves--,^! >e yr #bjjf capital ga9s res]ves f ! "pn]%ip4 ,l9e on s*$ule #c3 ,n/,a ,o!r 9=m,n3 ,see note #e ,notes #a4 ,^! am.ts >e eligi# =! 4#bej1jjj capital ga9s deduc;n4 ,= m 9=m,n1 see 8,claim+ a capital ga9s deduc;n0 on page #ab4 #b4 ,-plete l9e #agc if y want 6claim a capital ga9s deduc;n4 ,= m 9=m,n1 see 8,claim+ a capital ga9s deduc;n0 on page #ab4 #c4 ,if ? is yr only 5try on l9e #agf1 put brackets >.d ! am.t4 ,if x is n yr only 5try1 subtract x f ! #aaj ,*apt] #b e#bj total ( all o!r am.ts y 5t] on l9e #agf4 #d4 ,if ! am.t is 9 brackets1 x is a capital loss4 ,if y h a capital loss & x is yr only 5try on l9e #agd1 put brackets >.d x4 ,o!rwise1 subtract ! am.t f ! total ( all o!r am.ts y 5t] on l9e #agd4 #e4 ,5t] any res]ve on ,=m ,t#bjag1 ,summ>y ( ,res]ves on ,4posi;ns ( ,capital ,prop]ty4 ,! 9/ruc;ns provid$ )! ,t#ejac slip %d 9dicate ": 65t] ! am.ts on ,=m ,t#bjag4 #f4 ,= details1 r1d ! sec;n 2l 5titl$ 8,id5tical prop]ties04 #g4 ,a footnote may 9dicate t a "p (! am.t 9 box #gj %d 2 report$ on a di6]5t l9e7s7 ( ,s*$ule #c4 ,if ? is ! case1 make sure 6subtract ? am.t7s7 f ! total 9 box #gj & only report ! rema9d] on l9e #agd ( ,s*$ule #c4 #aaa f#bj #aab ,*apt] #c--,special rules g#bj & o!r transac;ns ,? *apt] expla9s "s (! special rules t may apply :5 y calculate yr capital ga9 or loss4 ,x al expla9s h[ 6report "s (! less -mon capital transac;ns4 ,note ,y may ne$ 6ref] 6! ,gloss>y on page #e =! def9i;n ( c]ta9 t]ms us$ 9 ? *apt]4 ,adju/$ co/ base 7,,acb7 ,9 "s cases1 special rules may apply t w all[ y 63sid] ! co/ (a prop]ty 6be an am.t o!r ?an xs actual co/4 ,? sec;n expla9s ^! rules4 ,id5tical prop]ties ,prop]ties (a gr\p >e 3sid]$ 6be id5tical if ea* prop]ty 9 ! gr\p is ! same z all ! o!rs4 ,! mo/ -mon #aac ,*apt] #c h#bj examples ( id5tical prop]ties >e %>es (! same class (! capital /ock (a corpor,n or units (a mutual fund tru/4 -------------------------------------#ba ,y may buy & sell s"eal id5tical prop]ties at di6]5t prices ov] a p]iod ( "t4 ,if y d ?1 y h 6calculate ! av]age co/ ( ea* prop]ty 9 ! gr\p at ! "t ( ea* pur*ase 6det]m9e yr ,,acb 74posi;ns ( id5tical prop]ties d n a6ect ! ,,acb74 ,! av]age co/ is calculat$ 0divid+ ! total co/ ( id5tical prop]ties pur*as$ 7? is usu,y ! co/ (! prop]ty plus any exp5ses 9volv$ 9 acquir+ x7 0! total numb] ( id5tical prop]ties [n$4 ,any am.t report$ 9 ,box #db--,am.t result+ 9 co/ base adju/;t1 (! ,t#c slip repres5ts a *ange 9 ! capital bal.e (! mutual fund tru/ id5tifi$ on ! slip4 ,? am.t is us$ :5 calculat+ ! ,,acb report$ on ,s*$ule #c1 ,capital ,ga9s or 7,losses7 9 #bjjf =! prop]ty 9 ! ye> ( 4posi;n4 ,= m 9=m,n & an example (! calcul,n1 see 9=m,n %eet #aad ,*apt] #c a#ba ,,rc#dafi1 ,tax ,tr1t;t ( ,mutual ,funds = ,9dividuals4 ,if ,box #db 3ta9s a negative am.t1 add ? am.t 6! adju/$ co/ base 7,,acb7 (! units (! tru/ id5tifi$ on ! slip4 ,if ,box #db 3ta9s a positive am.t1 subtract ? am.t f ! ,,acb (! units (! tru/ id5tifi$ on ! slip4 ,if ! ,,acb (! tru/ units is reduc$ 2l z]o dur+ ! tax,n ye>1 ! negative am.t is deem$ 6be a capital ga9 9 ! ye>4 ,! ,,acb (! tru/ units is deem$ 6be z]o4 ,5t] ! am.t (! capital ga9 on l9e #acb ( yr ,s*$ule #c4 7,place a z]o on l9e #aca s9ce "! is no actual sale ( units47 ,note ,g5],y1 ! foll[+ prop]ties >e .n 3sid]$ id5tical prop]ties3 --securities acquir$ "u an employee op;n agree;t t >e subject 6! b5efit def]ral or >e designat$ & 4pos$ ( )9 #cj "ds2 & #aae ,*apt] #c b#ba --c]ta9 employ] %>es rcvd 0an employee z "p (a lump-sum pay;t ^u )drawal f a def]r$ pr(it %>+ plan4 ,z a result1 ! ,,acb av]ag+ rule describ$ abv does .n apply 6^! types ( securities4 ,ea* ( ^! securities w h xs [n ,,acb det]m9$ 9 ! usual way4 ,y al use ? me?od 6calculate ! av]age co/ ( id5tical bonds or deb5tures y b"\ af #aiga4 ,h["e1 ! av]age co/ is bas$ on ! pr9cipal am.t = ea* id5tical prop]ty1 t is1 ! am.t 2f any 9t]e/ or premiums >e a4$4 ,a bond1 deb5ture1 or simil> debt oblig,n t a debtor issues is 3sid]$ 6be id5tical 6ano!r if3 --! same debtor issues bo?2 & --all ! atta*$ "rs >e ! same4 ,! pr9cipal am.t ( 9dividual debt oblig,ns 2+ ! same is n 5 = s* debts 6be 3sid]$ id5tical prop]ties4 ,!y m/ / meet ! two 3di;ns li/$ abv4 #aaf ,*apt] #c c#ba ,example #a ,ov] ! ye>s1 ,/ephanie has b"\ & sold -mon %>es ( ,,stu ,ltd4 ,! foll[+ *>t %[s h[1 af ea* pur*ase1 ! ,,acb ( h] %>es *anges4 ,transcrib]'s note3 7,examples #a & #b >e set up 9 f\r columns3 ,column #a3 ,transac;n ,column #b3 ;,a ,co/ 74#7 ,column #c3 ;,b ,numb] ( %>es or units ,column #d3 ;,a divid$ 0;,b ,,acb 74#77 ,transac;n ,pur*ase 9 #aiif3 4#ae.jj/%>e ;,a ,co/3 4#a1ejj ;,b ,%>es3 #ajj ,,acb3 4#a1ejj divid$ 0#ajj equals 4#ae.jj #aag ,*apt] #c d#ba ,transac;n ,pur*ase 9 #aiig3 4#bj.jj/%>e ;,a ,co/3 4#c1jjj ;,b ,%>es3 #aej .,new .av]age .co/ ;,a ,co/3 4#a1ejj plus 4#c1jjj equals 4#d1ejj ;,b ,%>es3 #ajj plus #aej equals #bej ,,acb3 4#d1ejj divid$ 0#bej equals 4#ah.jj ,transac;n ,sale 9 #bjjf ;,a ,co/3 4#c1fjj ;,b ,%>es3 #bjj .,av]age .co/ ;,a ,co/3 4#d1ejj m9us 4#c1fjj equals 4#ijj ;,b ,%>es3 #bej m9us #bjj equals #ej ,,acb3 4#ijj divid$ 0#ej equals 4#ah.jj ,transac;n ,pur*ase 9 #bjjf3 4#ba.jj/%>e ;,a ,co/3 4#g1cej #aah ,*apt] #c e#ba ;,b ,%>es3 #cej .,new .av]age .co/ ;,a ,co/3 4#ijj plus 4#g1cej equals 4#h1bej ;,b ,%>es3 #ej plus #cej equals #djj ,,acb3 4#h1bej divid$ 0#djj equals 4#bj.fc ,example #b ,9 #aiii1 ,pe>l b"\ units (a mutual fund tru/4 ,:5 %e b"\ !m1 ,pe>l *ose 6re9ve/ h] annual 9come 4tribu;ns 9 m units4 ,! foll[+ *>t %[s h[ ! ,,acb ( h] units *anges af ea* pur*ase4 ,transac;n3 ,pur*ase 9 #aiii3 4#ah.jj/unit ;,a ,co/3 4#ae1jjj.jj ;,b ,units3 #hcc.cccc ,,acb3 4#ae1jjj.jj divid$ 0#hcc.cccc equals 4#ah.jj #aai ,*apt] #c f#ba ,transac;n3 ,re9ve/$ 4tribu;ns 9 #aiii3 4#ai.ee/unit ;,a ,co/3 4#a1agj.jj ;,b ,units3 #ei.hdff .,new .av]age .co/ ;,a ,co/3 4#ae1jjj.jj plus 4#a1agj.jj equals 4#af1agj.jj ;,b ,units3 #hcc.cccc plus #ei.hdff equals #hic.agii ,,acb3 4#af1agj.jj divid$ 0#hic.agii equals 4#ah.aj ,transac;n3 ,re9ve/$ 4tribu;ns 9 #bjjj3 4#bj.fc/unit ;,a ,co/3 4#a1dee.cj ;,b ,units3 #gj.edbi .,new .av]age .co/ ;,a ,co/3 4#af1agj.jj plus 4#a1dee.cj equals 4#ag1fbe.cj ;,b ,units #hic.agii plus #gj.edbi equals #ifc.gbbh #abj ,*apt] #c g#ba ,,acb3 4#ag1fbe.cj divid$ 0#ifc.gbbh equals 4#ah.bi ,transac;n3 ,sale 9 #bjjf ;,a ,co/3 4#g1caf.jj ;,b ,units3 #djj.jjjj .,av]age .co/ ;,a ,co/3 4#ag1fbe.cj m9us 4#g1caf.jj equals 4#aj1cji.cj ;,b ,units3 #ifc.gbbh m9us #djj.jjjj equals #efc.gbbh ,,acb3 4#aj1cji.cj divid$ 0#efc.gbbh equals 4#ah.bi ,transac;n3 ,re9ve/$ 4tribu;ns 9 #bjjf3 4#ai.hi/unit ;,a ,co/3 4#gba.fe ;,b ,units3 #cf.bhba .,new .av]age .co/ ;,a ,co/3 4#aj1cji.cj plus 4#gba.fe equals 4#aa1jcj.ie #aba ,*apt] #c h#ba ;,b ,units3 #efc.gbbh plus #cf.bhba equals #fjj.jjdi ,,acb3 4#aa1jcj.ie divid$ 0#fjj.jjdi equals 4#ah.ch ,prop]ty = : y fil$ ,=m ,t#ffd or ,t#ffd7,s5iors7 ,special rules al apply 6det]m9e ! adju/$ co/ base 7,,acb7 (a prop]ty = : y fil$ ,=m ,t#ffd or ,t#ffd7,s5iors71 ,elec;n 6,report a ,capital ,ga9 on ,prop]ty ,[n$ at ! ,5d ( ,febru>y #bb1 #aiid4 ,9 mo/ cases1 if y fil$ ,=m ,t#ffd or ,t#ffd7,s5iors71 y >e 3sid]$ 6h sold yr capital prop]ty at ! 5d ( ,febru>y #bb1 #aiid1 & 6h immly reacquir$ x on ,febru>y #bc1 #aiid4 ,! ,,acb ( yr prop]ty on ,febru>y #bc1 #aiid1 dep5ds on ! type ( prop]ty = -------------------------------------#bb : y fil$ an elec;n4 ,= example1 if y fil$ an elec;n = yr 9t]e/ in1 or #abb ,*apt] #c a#bb yr %>es (1 a fl[-"? 5t;y 7see page #bg71 9 mo/ cases ! ,,acb ( yr 9t]e/ or %>es w n *ange4 ,if y fil$ an elec;n = capital prop]ty1 o!r ?an a fl[-"? 5t;y1 yr ,,acb is usu,y ! am.t y designat$ z proce$s ( 4posi;n on ,=m ,t#ffd or ,t#ffd7,s5iors74 ,if ! prop]ty is a cottage1 r5tal prop]ty1 or o!r non- qualify+ r1l prop]ty1 yr ,,acb is yr designat$ proce$s ( 4posi;n .m9us ! reduc;n = non-qualify+ r1l prop]ty4 ,al1 if yr designat$ proce$s ( 4posi;n 7 .m ?an ! fair m>ket value (! prop]ty at ! 5d ( ,febru>y #bb1 #aiid1 yr ,,acb on ,febru>y #bc1 #aiid1 may 2 reduc$4 ,9 ? case1 -plete ,*>t #b or #c 6det]m9e yr ,,acb on ,febru>y #bc1 #aiid4 ,*>t #b--,calculat+ ! revis$ adju/$ co/ base 7,,acb7 (a fl[-"? 5t;y ,-plete ? *>t 6calculate ! ,,acb ( yr %>es (1 or 9t]e/ in1 ! fl[-"? #abc ,*apt] #c b#bb 5t;y .only if ! proce$s ( 4posi;n y designat$ on ,=m ,t#ffd =! prop]ty 7 .m ?an xs fair m>ket value 7,,fmv7 at ! 5d ( ,febru>y #bb1 #aiid4 ,if ! fl[-"? 5t;y is a tru/ 7o!r ?an a mutual fund tru/71 d n -plete ? *>t z y d n h 6reduce ! ,,acb ( yr 9t]e/4 ,/ep #a--,reduc;n (! ,,acb 7#a7 ,designat$ proce$s ( 4posi;n 7column #b1 ,*>t ;,a ( ,=m ,t#ffd7 """"""""""""""""""""""" 4#---- 7#b7 ,,fmv at ! 5d ( ,febru>y #bb1 #aiid 7,/ep #a ( ,=m ,t#ffd7 4#---- 7#c7 ,am.t f l9e #b 4#---- "ts #a.a """""""""""""""""""""" 4#---- 7#d7 ,l9e #a .m9us l9e #c 7if negative1 5t] 8#j07 """"""""""" 4#---- ..,if ! am.t on l9e #d is z]o1 d n -plete ! re/ ( ? .*>t4 #abd ,*apt] #c c#bb 7#e7 ,,acb at ! 5d ( ,febru>y #bb1 #aiid 7column #a1 ,*>t ;,a ( ,=m ,t#ffd7 """""""""""" 4#---- 7#f7 ,l9e #b .m9us l9e #e 4#---- ..,if y 5t]$ an am.t 9 column #d1 ,*>t ;,a ( ,=m ,t#ffd1 -plete l9e #g4 ,o!rwise1 5t] ! am.t f l9e #f on l9e .#h4 7#g7 7,am.t f column #d1 ,*>t ;,a ( ,=m ,t#ffd 4#---- divid$ 0,am.t f column #c1 ,*>t ;,a ( ,=m ,t#ffd 4#---- "ts l9e #f 4#---- """""""""" 4#---- 7#h7 ,l9e #f .m9us l9e #g 4#---- 4#---- 7#i7 ,reduc;n 7l9e #d .m9us l9e #h7 """"""""""""""""" 4#---- ..,if ! am.t on l9e #i is negative1 d n -plete ! re/ ( ? .*>t4 #abe ,/ep #b--,revis$ ,,acb d#bb 7#aj7 ,,acb at ! 5d ( ,febru>y #bb1 #aiid 7l9e #e7 """"""""""" 4#---- 7#aa7 ,reduc;n 7l9e #i7 """"""""" 4#---- 7#ab7 ..,revis$ ,,acb on ,febru>y #bc1 .#aiid 7l9e #aj .m9us l9e #aa2 if negative1 5t] 8#j07 """ 4#---- ,use ! am.t on l9e #ab 6calculate ! capital ga9 or loss :5 y sell yr %>es (1 or 9t]e/ in1 ! fl[-"? 5t;y4 -------------------------------------#bc ,*>t #c--,calculat+ ! revis$ adju/$ co/ base 7,,acb7 ( capital prop]ty 7o!r ?an a fl[-"? 5t;y7 ,-plete ? *>t 6calculate ! ,,acb (! prop]ty .only if ! proce$s ( 4posi;n y designat$ on ,=m ,t#ffd or ,t#ffd7,s5iors7 =! prop]ty 7 .m ?an xs fair m>ket value 7,,fmv7 at ! 5d ( ,febru>y #bb1 #aiid4 #abf ,*apt] #c a#bc 7#a7 ,,fmv (! prop]ty at ! 5d ( ,febru>y #bb1 #aiid ,7f ,/ep #a ( ,=m ,t#ffd or ,t#ffd7,s5iors77' """"""""""""" 4#---- 7#b7 ,designat$ proce$s ( 4posi;n ,7column #b1 ,*>t ;,b ( ,=m ,t#ffd1 or column #b1 ,/ep #b ( ,=m ,t#ffd7,s5iors77' "" 4#---- 7#c7 ,am.t f l9e #a 4#---- "ts #a.a """"""""""""""" 4#---- 7#d7 ,l9e #b .m9us l9e #c 7if negative1 5t] 8#j07 4#---- 4#---- 7#e7 ,l9e #a .m9us l9e #d 7if negative1 5t] 8#j07 """"""" 4#---- 7#f7 ,if ! prop]ty is non- qualify+ r1l prop]ty1 5t] ! am.t f column #d1 ,*>t ;,b ( ,=m ,t#ffd1 or column #d1 ,/ep #b ( ,=m ,t#ffd7,s5iors74 ,o!rwise1 5t] 8#j40 """"""""""" 4#---- #abg ,*apt] #c b#bc 7#g7 ..,revis$ ,,acb on ,febru>y #bc1 .#aiid 7l9e #e .m9us l9e #f2 if negative1 5t] 8#j07 """" 4#---- ,use ! am.t on l9e #g 6calculate ! capital ga9 or loss :5 y sell ! prop]ty4 ,prop]ty y 9h]it or rcv z a gift ,if y rcv prop]ty z a gift1 y >e g5],y 3sid]$ 6h acquir$ ! prop]ty at xs fair m>ket value 7,,fmv7 on ! date y acquir$ x4 ,simil>ly1 if y w9 prop]ty 9 a lott]y1 y >e 3sid]$ 6h acquir$ ? prize at xs ,,fmv at ! "t y won x4 ,g5],y1 :5 y 9h]it prop]ty1 ! prop]ty's co/ 6y is equal 6! deem$ proce$s ( 4posi;n =! dec1s$4 ,usu,y1 ? am.t is ! ,,fmv (! prop]ty "r 2f ! p]son's d1?4 ,h["e1 "! >e excep;ns 6? rule4 ,= example1 prop]ty t y 9h]it 2c yr sp\se or -mon-law "pn] di$1 or f>m prop]ty or a woodlot transf]r$ on #abh ,*apt] #c c#bc d1? 6a *1 may 2 tr1t$ di6]5tly4 ,see ! *apt] call$ 8,deem$ 4posi;n ( prop]ty0 9 guide ,t#djaa1 ,prep>+ ,returns = ,dec1s$ ,p]sons1 6f9d \ : rules apply 6yr situ,n4 ,sell+ a build+ 9 #bjjf ,if y sold a build+ (a prescrib$ class 9 #bjjf1 special rules may make ! sell+ price an am.t o!r ?an ! actual sell+ price4 ,? happ5s :5 y meet .bo? (! foll[+ 3di;ns3 --y1 or a p]son ) :om y d n d1l at >m's l5g?1 [n ! l& on : ! build+ is locat$1 or ! l& adjo9+ ! build+ if y ne$ ! l& 6use ! build+2 & --y sold ! build+ = less ?an xs .co/ .am.t & xs capital co/4 ,calculate ! .co/ .am.t z foll[s3 --,if ! build+ 0 ! only prop]ty 9 ! class1 ! co/ am.t is ! undepreciat$ capital co/ 7,,ucc7 (! class 2f ! sale4 #abi ,*apt] #c d#bc --,if m ?an "o prop]ty is 9 ! same class1 y h 6calculate ! co/ am.t ( ea* build+ z foll[s3 ,capital co/ (! build+ divid$ 0,capital co/ ( all prop]ties 9 ! class t h n be5 previ\sly 4pos$ ( multipli$ 0,,ucc (! class equals ,co/ am.t (! build+ ,note ,y may h 6recalculate ! capital co/ (a prop]ty 6det]m9e xs co/ am.t if3 --y acquir$ a prop]ty directly or 9directly f a p]son or "pn]%ip ) :om y did n d1l at >m's l5g?2 or --y acquir$ ! prop]ty = "s o!r purpose & lat] 2gan 6use x1 or 9cr1s$ xs use1 6e>n r5tal or busi;s 9come4 ,= m 9=m,n1 3tact u4 #acj ,*apt] #c e#bc ,if y sold a build+ "u ^! 3di;ns1 ? may re/rict ! t]m9al loss on ! build+ & reduce ! capital ga9 on ! l&4 ,= m 9=m,n1 see guide ,t#djcf1 ,r5tal ,9come1 or ,9t]pret,n ,bullet9 ,,it-#bbj1 ,capital ,co/ ,all[.e--,proce$s ( ,4posi;n ( ,deprecia# ,prop]ty1 & xs ,special ,rel1se4 ,sell+ "p (a prop]ty ,:5 y sell only "p (a prop]ty1 y h 6divide ! adju/$ co/ base 7,,acb7 (! prop]ty 2t ! "p y sell &! "p y keep4 -------------------------------------#bd ,example ,lily [ns #ajj hect>es ( vacant l& ( equal qual;y4 ,%e decides 6sell #be hect>es ( ? l&4 ,s9ce #be is "o qu>t] ( #ajj1 ,lily calculates "o qu>t] (! total ,,acb z foll[s3 #aca ,*apt] #c a#bd ,total ,,acb """"""""""""""""" 4#ajj1jjj .,m9us3 ,! ,,acb (! "p %e sold 74#ajj1jjj "ts "o-qu>t]7 """" 4#be1jjj ,! ,,acb (! "p %e kept """""""" 4#ge1jjj ,"!=e1 ,lily's ,,acb is 4#be1jjj =! #be hect>es %e sold4 ,= m 9=m,n on sell+ "p (a prop]ty1 see ,9t]pret,n ,bullet9 ,,it-#bfd1 ,"p ,4posi;ns1 & xs ,special ,rel1se4 ,capital ga9s def]ral = 9ve/;t 9 small busi;s ,9dividuals 7o!r ?an tru/s7 may def] capital ga9s 9curr$ on c]ta9 small busi;s 9ve/;ts 4pos$ ( 9 #bjjf4 ,? def]ral applies 64posi;ns ": y use ! proce$s 6acquire ano!r small busi;s 9ve/;t4 ,! adju/$ co/ base 7,,acb7 (! new 9ve/;t is reduc$ 0! capital ga9 def]r$ f ! 9itial 9ve/;t4 #acb ,*apt] #c b#bd ,y may acquire %>es f a sp\se1 -mon- law "pn]1 or p>5t due 6circum/.es s* z a d1? or ! br1kd[n (a m>riage or -mon-law "pn]%ip4 ,=! purposes (! capital ga9s def]ral1 we 3sid] y 6h acquir$ s* %>es at ! "t & "u ! same circum/.es t ! relat$ 9dividual orig9,y acquir$ !m4 ,! capital ga9s def]ral is al availa# 69dividuals 9volv$ 9 pool+ _! 9ve/;ts ) ano!r p]son or "pn]%ip4 ,if y >e "p ( s* a qualify+ pool+ >range;t1 call u = m 9=m,n4 ,6qualify =! capital ga9s def]ral = 9ve/;t 9 small busi;s1 ! 9ve/;t m/ 2 9 an eligi# small busi;s corpor,n4 ,eligi# small busi;s corpor,n %>es ,! capital ga9s def]ral applies only 6eligi# small busi;s corpor,n %>es4 ,eligi# small busi;s corpor,n %>es h ! foll[+ "*i/ics3 #acc ,*apt] #c c#bd --,!y 3si/ ( -mon %>es issu$ 0! corpor,n 6y1 ! 9ve/or4 --,! issu+ corpor,n m/ 2 an ..eligi# small busi;s .corpor,n 7z def9$ 9 ! ,gloss>y on page #f7 at ! "t ! %>es 7 issu$4 --,! total c>ry+ value (! assets (! corpor,n 7t is1 ! am.t at : ! assets (! corpor,n wd 2 valu$ =! purpose (! corpor,n's bal.e %eet z ( t "t if x 0 prep>$ 9 a3ord.e ) g5],y a3ept$ a3.t+ pr9ciples us$ 9 ,canada at t "t1 except t an asset (a corpor,n t is a %>e or debt issu$ 0a relat$ corpor,n is deem$ 6h a c>ry+ value ( nil7 & relat$ corpor,ns _c exce$ 4#ej million immly 2f1 & immly af1 ! %>e 0 issu$4 --,:ile y hold ! %>es1 ! issu+ corpor,n is an ..eligi# active busi;s .corpor,n 7z def9$ 9 ! ,gloss>y on page #f74 #acd ,*apt] #c d#bd ,6be a# 6def] ! capital ga91 y m/ h held ! eligi# small busi;s corpor,n %>es = m ?an #ahe "ds f ! date y acquir$ !m4 ,! replace;t %>es h 6be acquir$ at any "t 9 ! ye> 9 : ! 4posi;n is made or )9 #abj "ds af ! 5d ( t ye>4 ,= example1 y acquire eligi# small busi;s corpor,n %>es 9 ,octob] #bjjb & 4pose ( !m on ,june #i1 #bjjf4 ,y may acquire ! replace;t %>es on or 2f ,april #cj1 #bjjg1 : is )9 #abj "ds af ! 5d (! tax,n ye> (! orig9al 4posi;n4 ,calculat+ ! capital ga9s def]ral ,! capital ga9s def]ral is availa# =! 4posi;n ( eligi# small busi;s corpor,n %>es made 9 #bjjf4 ,! 9ve/;t c 2 made 0an 9dividual 9 any "picul> corpor,n 7or relat$ gr\p74 ,! p]mitt$ def]ral (! capital ga9 f ! 4posi;n ( eligi# small busi;s corpor,n %>es is det]m9$ 0! foll[+ =mula3 #ace ,*apt] #c e#bd ,capital ga9s def]ral equals ;,b multipli$ by 7;,d divid$ 0;,e7 ": ;,b equals ! total capital ga9 f ! orig9al sale ;,e equals ! proce$s ( 4posi;n ;,d equals ! less] ( ;,e &! total co/ ( all replace;t %>es ,= 4posi;ns 9 #bjjf1 report ! total capital ga9 on l9es #aca & #acb ( ,s*$ule #c &! capital ga9s def]ral on l9e #afa ( ,s*$ule #c4 ,! capital ga9 y m/ report 9 ! ye> ( 4posi;n w 2 det]m9$ 0.subtract+ ! capital ga9 def]ral f ! total capital ga9 r1liz$ f ! 4posi;n4 ,note ,def]r$ capital ga9s .d .n .qualify =! capital ga9s deduc;n 7l9e #bed74 ,"!=e1 .d .n .report on l9es #ajf & #ajg ( ,s*$ule #c any 4posi;n ( qualifi$ small busi;s corpor,n %>es if y elect 6def] ! capital ga9s t #acf ,*apt] #c f#bd result$ f ! 4posi;n ( ^? %>es4 ,9/1d1 report s* 4posi;n on l9es #aca & #acb ( ,s*$ule #c4 ,,acb reduc;n ,y m/ use ! capital ga9s def]ral 6reduce ! ,,acb ( .ea* (! eligi# replace;t %>es 0! am.t det]m9$ 0! foll[+ =mula3 ,,acb reduc;n equals ;,f multipli$ by 7;,g divid$ 0;,h7 ": ;,f equals capital ga9s def]ral ;,g equals ! co/ ( replace;t %>es ;,h equals ! total co/ ( all ! replace;t %>es -------------------------------------#be ,o!r transac;ns ,! rema9+ sec;ns 9 ? *apt] h 9=m,n on less -mon transac;ns4 #acg ,eligi# capital prop]ty a#be ,if y 4pos$ ( eligi# capital prop]ty 7z def9$ 9 ! ,gloss>y on page #f7 t is qualifi$ f>m or fi%+ prop]ty1 y may 2 a# 6claim ! capital ga9s deduc;n1 up 6a maximum ( 4#bej1jjj4 ,= details on h[ 6report ! 4posi;n ( ? type ( prop]ty & :at am.ts >e eligi# =! capital ga9s deduc;n1 see guide ,t#djjd1 ,fi%+ ,9come1 guide ,t#djjc1 ,f>m+ ,9come1 guide ,,rc#djfj1 ,f>m+ ,9come &! ,,cais ,program or ,,rc#ddjh1 ,f>m+ ,9come &! ,,cais ,program ,h>moniz$ ,guide4 ,r1d ! *apt] call$ 8,eligi# ,capital ,exp5ditures0 9 ^? guides4 ,elec;n on 4posi;ns ( eligi# capital prop]ty ,if y 4pos$ ( prop]ty f yr cumulative eligi# capital a3.t1 y may qualify 6make an elec;n = tax ye>s 5d+ af ,febru>y #bg1 #bjjj4 ,! elec;n all[s qualifi$ 9dividuals 6tr1t 4posi;ns ( ? #ach ,*apt] #c b#be type ( prop]ty z capital ga9s 9/1d ( busi;s 9come4 ,report ! capital ga9 9 ! 8,r1l e/ate1 deprecia# prop]ty1 & o!r prop]ties0 sec;n (! ,s*$ule #c4 ,= details on h[ 6calculate ! capital ga9 z well z ! 3di;ns t m/ 2 met 9 ord] 6qualify 6make ? elec;n1 see ! *apt] call$ 8,eligi# ,capital ,exp5ditures0 9 "o (! foll[+ guides3 --,t#djjc1 ,f>m+ ,9come2 --,,rc#djfj1 ,f>m+ ,9come &! ,,cais ,program2 --,,rc#ddjh1 ,f>m+ ,9come &! ,,cais ,program ,h>moniz$ ,guide2 --,t#djjb1 ,busi;s & ,profes.nal ,9come2 or --,t#djjd1 ,fi%+ ,9come4 ,note ,if y 4pos$ ( eligi# capital prop]ty af y c1s$ 6c>ry on busi;s1 y _c claim a res]ve on ! capital ga9s on ! sale ( #aci ,*apt] #c c#be t prop]ty4 ,? is 2c ! prop]ty is n 3sid]$ 6be sold 9 ! c\rse ( yr busi;s4 ,"pn]%ips ,a "pn]%ip does n pay tax on xs capital ga9s or losses1 & x does n report !m on a return4 ,9/1d1 memb]s (! "pn]%ip report _! %>e (! "pn]%ip's capital ga9s or losses on _! [n return4 ,c]ta9 "pn]%ips may h 6file a ,t#ejac ,summ>y1 ,"pn]%ip ,9=m,n ,return1 & s5d copies (! ,t#ejac1 ,/ate;t ( ,"pn]%ip ,9come1 or ,t#ejac;,a1 ,/ate;t ( ,"pn]%ip ,9come = ,tax ,%elt]s & ,ren\nc$ ,res\rce ,exp5ses1 6report am.ts fl[$ \ 6_! memb]s4 ,if y rcv a ,t#ejac or ,t#ejac;,a slip1 see ,*>t #a 2g9n+ on page #ai 6f9d \ h[ 6report yr %>e (! capital ga9 or loss f ! "pn]%ip4 ,h["e1 if y >e a memb] (a "pn]%ip t does n h 6file a ,t#ejac ,summ>y1 ,"pn]%ip ,9=m,n ,return = #bjjf1 #adj ,*apt] #c d#be y h 6report yr %>e ( any capital ga9 or loss f ea* 4posi;n ( capital prop]ty %[n on ! "pn]%ip f9ancial /ate;ts 9 ! appropriate >ea ( ,s*$ule #c4 ,= example1 if ! capital ga9 is f 4pos+ ( deprecia# prop]ty1 report ! ga9 9 ! 8,r1l e/ate1 deprecia# prop]ty1 & o!r prop]ties0 sec;n4 ,if ! "pn]%ip 4pos$ ( eligi# capital prop]ty t is qualifi$ fi%+ prop]ty af ,may #a1 #bjjf or t is qualifi$ f>m prop]ty1 "p (! busi;s 9come f ! transac;n may 2 a taxa# capital ga94 ,? am.t qualifies =! capital ga9s deduc;n1 up 6a maximum ( 4#bej1jjj4 ,! *apt] call$ 8,eligi# ,capital ,exp5ditures0 9 guide ,t#djjd1 ,fi%+ ,9come1 guide ,t#djjc1 ,f>m+ ,9come1 guide ,,rc#djfj1 ,f>m+ ,9come &! ,,cais ,program1 or ,,rc#ddjh1 ,f>m+ ,9come &! ,,cais ,program ,h>moniz$ ,guide1 expla9s h[ 6calculate & report ? am.t4 #ada ,capital ga9s reduc;n e#be 7fl[-"? 5t;y7 ,a "pn]%ip is 3sid]$ a fl[-"? 5t;y4 ,! la/ ye> 9 : y cd claim ! capital ga9s reduc;n 0 ! #bjjd tax ye>4 ,6f9d \ ! special rules = #bjje & subsequ5t tax ye>s &= m 9=m,n on fl[-"? 5tities1 see ,*apt] #d on page #bg4 ,capital ga9s deduc;n ,y may 2 eligi# =! capital ga9s deduc;n1 up 6a life"t maximum ( 4#bej1jjj1 if y >e report+ any (! foll[+ am.ts3 --a capital ga9 f 4pos+ ( qualifi$ small busi;s corpor,n %>es2 --a capital ga9 f 4pos+ ( qualifi$ f>m prop]ty2 --f>m+ 9come f ! 4posi;n ( eligi# capital prop]ty t is qualifi$ f>m prop]ty2 #adb ,*apt] #c f#be ,/>t \tl9e "u propos$ legisl,n1 --a capital ga9 f 4pos+ ( qualifi$ fi%+ prop]ty af ,may #a1 #bjjf2 or --fi%+ 9come f ! 4posi;n af ,may #a1 #bjjf1 ( eligi# capital prop]ty t is qualifi$ fi%+ prop]ty4 ,5d \tl9e ,= m 9=m,n1 see 8,claim+ a capital ga9s deduc;n0 on page #ab4 ,pur*ase ( replace;t prop]ty ,9 c]ta9 situ,ns1 y c elect 6po/p"o or def] report+ ! capital ga91 recapture ( capital all[.e1 or busi;s 9come f 4pos+ ( prop]ty4 ,provid$ y meet c]ta9 3di;ns1 y may want 6d ? :5 y use ! proce$s ( 4posi;n (! prop]ty 6pur*ase a replace;t prop]ty4 ,! elec;n may def] ! tax 3sequ;es on ! abv am.ts until y sell ! replace;t prop]ty4 ,y c make ? elec;n :5 y sell a busi;s prop]ty or :5 a #adc ,*apt] #c g#be prop]ty y [n is expropriat$1 de/roy$1 or /ol54 -------------------------------------#bf ,= m 9=m,n on ! elec;n1 see ,9t]pret,n ,bullet9 ,,it-#dia1 ,=m] ,busi;s ,prop]ty1 & xs ,special ,rel1se4 ,transf]s ( prop]ty 6yr sp\se or -mon-law "pn] or 6a tru/ = yr sp\se or -mon-law "pn] ,2f r1d+ ? sec;n1 y may want 6r1d ! def9i;n ( 8sp\se0 9 ! ,gloss>y on page #i &! def9i;n ( 8-mon-law "pn]0 on page #f4 ,if y give capital prop]ty 6yr sp\se or -mon-law "pn]1 a sp\sal or -mon-law "pn] tru/1 or a jo9t sp\sal or -mon-law "pn] tru/ or an alt] ego tru/ 7= def9i;ns ( ^! tru/s1 see guide ,t#djac1 ,t#c ,tru/ ,guide71 y g5],y d n h a capital ga9 or loss at t "t4 ,at ! "t y give ! gift1 dep5d+ on ! type ( prop]ty #add ,*apt] #c a#bf y give1 y >e 3sid]$ 6rcv an am.t equal to3 --! undepreciat$ capital co/ = deprecia# prop]ty2 or --! adju/$ co/ base = o!r types ( capital prop]ty4 ,yr sp\se or -mon-law "pn]1 or ! tru/ = yr sp\se or -mon-law "pn] or = yrf1 is 3sid]$ 6h b"\ ! capital prop]ty =! same am.t t y >e 3sid]$ 6h sold x =4 ,y may h transf]r$ or loan$ prop]ty 6yr sp\se or -mon-law "pn]1 a p]son :o has s9ce 2come yr sp\se or -mon-law "pn]1 or a tru/ = yr sp\se or -mon-law "pn]4 ,if t p]son or ! tru/ sells ! prop]ty dur+ yr life"t1 y usu,y h 6report any capital ga9 or loss f ! sale4 ,y usu,y h 6d ? if1 at ! "t (! sale3 --y >e a resid5t ( ,canada2 & --y >e bo? / m>ri$ or liv+ 9 a -mon- law rel,n%ip4 ,if y >e liv+ a"p 2c (a br1kd[n 9 ! rel,n%ip1 y may n h 6report ! #ade ,*apt] #c b#bf capital ga9 or loss :5 yr sp\se or -mon- law "pn] sells ! prop]ty4 ,9 s* a case1 y h 6file an elec;n ) yr return4 ,= transf]s ( prop]ty made ..af ,may #bb1 .#aihe1 y c file ? elec;n ) yr return = any tax ye> 5d+ af ! "t y sep>at$4 ,h["e1 =! elec;n 6be valid1 y h 6file x no lat] ?an ! ye> yr sp\se or -mon-law "pn] 4poses (! prop]ty4 ,6make ? elec;n1 atta* 6yr return a lr sign$ 0y & yr sp\se or -mon-law "pn]4 ,/ate t y d n want .sec;n .#gd.b (! ,9come ,tax ,act 6apply4 ,= transf]s ( prop]ty made ..2f ,may #bc1 .#aihe1 y h 6file ! elec;n ) yr return =! tax ye> 9 : ! sep>,n o3urr$4 ,6make ? elec;n1 atta* 6yr return a lr sign$ 0y & yr sp\se or -mon-law "pn]4 ,/ate t y d n want .subsec;n .#gd7#b7 (! ,9come ,tax ,act 6apply4 ,if y sold ! prop]ty 6yr sp\se or -mon-law "pn] or a tru/ = yr sp\se or -mon-law "pn] & y 7 pd an am.t equal 6! fair m>ket value 7,,fmv7 (! #adf ,*apt] #c c#bf prop]ty1 "! is ano!r way 6report ! sale4 ,g5],y1 y c li/ ! sale at ! prop]ty's ,,fmv1 & report any capital ga9 or loss =! ye> y sold ! prop]ty4 ,6d ?1 y h 6file an elec;n ) yr return4 ,6make ? elec;n1 atta* 6yr return a lr sign$ 0y & yr sp\se or -mon-law "pn]4 ,/ate t y >e report+ ! prop]ty z 2+ sold 6yr sp\se or -mon-law "pn] at xs ,,fmv1 & t y d n want .subsec;n .#gc7#a7 (! ,9come ,tax ,act 6apply4 ,if yr sp\se or -mon-law "pn] or ! tru/ lat] sells ! prop]ty1 yr sp\se or -mon-law "pn] or ! tru/ has 6report any capital ga9 or loss f ! sale4 ,a special situ,n exi/s if all (! foll[+ apply 6y3 --y [n$ capital prop]ty 7o!r ?an deprecia# prop]ty or a "pn]%ip 9t]e/7 on ,june #ah1 #aiga2 --y gave ! prop]ty 6yr sp\se or -mon-law "pn] af #aiga2 & --yr sp\se or -mon-law "pn] lat] sold ! prop]ty4 #adg ,*apt] #c d#bf ,9 ? case1 c]ta9 rules apply :5 calculat+ yr & yr sp\se's or -mon-law "pn]'s capital ga9 or loss 6remove any capital ga9s a3ru$ 2f #aigb4 ,= m 9=m,n1 see ,9t]pret,n ,bullet9 ,,it-#bji1 ,9t]- ,vivos ,gifts ( ,capital ,prop]ty 6,9dividuals ,directly or ,"? ,tru/s1 & xs ,special ,rel1se4 ,o!r transf]s ( prop]ty ,if y give capital prop]ty z a gift1 y >e 3sid]$ 6h sold x at xs ,,fmv at ! "t y give ! gift4 ,9clude any taxa# capital ga9 or all[a# capital loss on yr return =! ye> t y give ! gift4 ,if y sell prop]ty 6"s"o ) :om y d n d1l at >m's l5g? &! sell+ price is .less ?an xs ,,fmv1 yr sell+ price is 3sid]$ 6be ! ,,fmv4 ,simil>ly1 if y buy prop]ty f "s"o ) :om y d n d1l at >m's l5g?1 &! pur*ase price is .m ?an ! ,,fmv1 yr pur*ase price is 3sid]$ 6be ! ,,fmv4 #adh ,*apt] #c e#bf ,special rules all[ y 6transf] prop]ty at an am.t o!r ?an ! prop]ty's ,,fmv4 ,if ^! rules apply 6y1 y may 2 a# 6po/p"o pay+ tax on any capital ga9s y _h f ! transf]4 ,we note "s (! m -mon transf]s 2l4 ,f>m or fi%+ prop]ty ,/>t \tl9e ,"u propos$ legisl,n1 ! 4posi;n af ,may #a1 #bjjf1 ( prop]ty us$ 9 a family fi%+ busi;s w h simil> rules 6^? = 4posi;ns ( f>m prop]ty4 ,5d \tl9e ,:5 y sell or transf] f>m or fi%+ prop]ty1 y may h a capital ga94 ,_m special rules apply 6^! types ( capital ga9s4 ,= example1 if y transf] f>m or fi%+ prop]ty 6a sp\se1 -mon-law "pn]1 or *1 ^! rules may apply4 ,= m 9=m,n on ^! types ( transf]s & o!r rules t apply 6f>m or fi%+ prop]ty1 see guide #adi ,*apt] #c f#bf ,t#djjd1 ,fi%+ ,9come1 guide ,t#djjc1 ,f>m+ ,9come1 guide ,,rc#djfj1 ,f>m+ ,9come &! ,,cais -------------------------------------#bg ,program1 or guide ,,rc#ddjh1 ,f>m+ ,9come &! ,,cais ,program ,h>moniz$ ,guide4 ,elec;ns ,y c po/p"o report+ a capital ga9 :5 y transf] prop]ty3 --f an 9dividual or "pn]%ip 6a ,canadian corpor,n2 or --f an 9dividual 6a ,canadian "pn]%ip4 ,= 9=m,n on transf]s 6a ,canadian corpor,n1 see ,9=m,n ,circul> #gf-ai1 ,transf] ( ,prop]ty 6a ,corpor,n ,"u ,sec;n #he4 ,= 9=m,n on transf]s 6a ,canadian "pn]%ip1 see ,9t]pret,n ,bullet9 ,,it-#dac1 ,elec;n 0,memb]s (a ,"pn]%ip ,"u ,subsec;n #ig7#b74 #aej ,sell+ or donat+ c]tifi$ a#bg ,canadian cultural prop]ty ,y d n h 6report a capital ga9 :5 y sell or donate c]tifi$ ,canadian cultural prop]ty 7n,nal tr1sures7 6an 9/itu;n or public au?or;y designat$ 0! ,m9i/] ( ,canadian ,h]itage4 ,! ,canadian ,cultural ,prop]ty ,export ,review ,bo>d c]tifies ? prop]ty z cultural prop]ty & w give y a c]tificate = tax purposes4 ,cultural prop]ty c 9clude pa9t+s1 sculptures1 books1 manuscripts1 or o!r objects4 ,if y sell or donate c]tifi$ cultural prop]ty 6a designat$ 9/itu;n1 y may h a capital loss4 ,! tax tr1t;t (! loss w dep5d on :at type ( prop]ty y sold or donat$4 ,= example1 ! c]tifi$ cultural prop]ty may 2 li/$ p]sonal prop]ty4 ,if ? is ! case1 ! rules = li/$ p]sonal prop]ty losses w apply4 ,= 9=m,n on h[ 6apply capital losses1 see ,*apt] #e on page #bh4 #aea ,*apt] #c b#bg ,= m 9=m,n1 see ,9t]pret,n ,bullet9 ,,it-#djg1 ,4posi;ns ( ,cultural ,prop]ty 6,designat$ ,canadian ,9/itu;ns1 or pamphlet ,p#aac1 ,gifts & ,9come ,tax4 ,gifts ( ecologic,y s5sitive l& ,if y made a gift ( ecologic,y s5sitive l& 6a qualifi$ donee 2f ,may #b1 #bjjf1 & y r1liz$ a capital ga91 y w h 69clude ! ga9 9 9come =! ye> ( 4posi;n4 ,/>t \tl9e ,= gifts ( ^! prop]ties made af ,may #a1 #bjjf1 ! net capital ga9 is z]o4 ,use ,=m ,t#aagj1 ,capital ,ga9s on ,gifts ( ,c]ta9 ,capital ,prop]ty1 6report ! am.ts4 ,5d \tl9e #aeb ,*apt] #c c#bg ,= gifts 7o!r ?an gifts 6a private f.d,n7 made 2f ,may #b1 #bjjf1 -plete ,=m ,t#aagj 6calculate ! am.t 69clude 9 yr 9come1 & atta* x 6yr return4 ,6qualify = ? tax tr1t;t1 y m/ meet c]ta9 3di;ns4 ,"u propos$ legisl,n1 if y make a gift ( ecologic,y s5sitive l& 6a qualifi$ donee1 o!r special rules may apply4 ,= m 9=m,n1 see pamphlet ,p#aac1 ,gifts & ,9come ,tax4 #aec d#bg #aed ,*apt] #d--,fl[-"? 5tities e#bg ,! 9=m,n 9 ? *apt] applies 6y if1 =! #aiid tax ye>1 y fil$ ,=m ,t#ffd1 ,elec;n 6,report a ,capital ,ga9 on ,prop]ty ,[n$ at ! ,5d ( ,febru>y #bb1 #aiid1 = yr %>es (1 or 9t]e/ in1 a fl[- "? 5t;y4 ,? *apt] provides 9=m,n on ! types ( 9ve/;ts t >e 3sid]$ fl[-"? 5tities z well z :at y c d ) any rema9+ exempt capital ga9s bal.e t y may h at ! 5d ( #bjjd4 ,:at is a fl[-"? 5t;y8 ,y >e a memb] (1 or 9ve/or in1 a fl[- "? 5t;y if y [n %>es or units (1 or an 9t]e/ in1 "o (! foll[+3 #a4 an 9ve/;t corpor,n2 #b4 a mortgage 9ve/;t corpor,n2 #c4 a mutual fund corpor,n2 #d4 a mutual fund tru/2 #e4 a relat$ segregat$ fund tru/2 #f4 a "pn]%ip2 #aee ,*apt] #d f#bg #g4 a tru/ gov]n$ 0an employees' pr(it-%>+ plan2 #h4 a tru/ ma9ta9$ prim>ily =! b5efit ( employees (a corpor,n or two or m corpor,ns t d n d1l at >m's l5g? ) ea* o!r1 ": "o (! ma9 purposes (! tru/ is 6hold 9t]e/s 9 %>es (! capital /ock (! corpor,n or corpor,ns1 z ! case may be1 or any corpor,n n d1l+ at >m's l5g? "!)2 #i4 a tru/ e/abli%$ =! b5efit ( cr$itors 9 ord] 6secure c]ta9 debt oblig,ns2 or #aj4 a tru/ e/abli%$ 6hold %>es (! capital /ock (a corpor,n 9 ord] 6ex]cise ! vot+ "rs atta*$ 6s* %>es4 ,exempt capital ga9s bal.e 7,,ecgb7 ,:5 y fil$ ,=m ,t#ffd = yr %>es (1 or 9t]e/ in1 a fl[-"? 5t;y1 ! elect$ capital ga9 y report$ cr1t$ an ,,ecgb = t 5t;y4 #aef ,*apt] #d g#bg ,note ,g5],y1 yr ,,ecgb expir$ af #bjjd4 ,if y did n use all ( yr ,,ecgb 0! 5d ( #bjjd1 y c add ! unus$ bal.e 6! adju/$ co/ base ( yr %>es (1 or 9t]e/ in1 ! fl[-"? 5t;y4 ,= #bjjd & previ\s tax,n ye>s1 if y rcvd prop]ty f a tru/ 9 satisfac;n ( all or a "p ( yr 9t]e/ 9 ! tru/ 7a fl[-"? 5t;y describ$ 9 items #g 6#aj abv71 y cd elect 6use ! ,,ecgb =! 5t;y 69cr1se ! co/ ( prop]ty y rcvd f ! tru/4 ,= #bjje & future ye>s1 ! elec;n is no l;g] nec 2c any unus$ ,,ecgb c only 2 a4$ 6! co/ ( yr 9t]e/ 9 ! fl[-"? 5t;y4 -------------------------------------#bh ,example ,&rew fil$ ,=m ,t#ffd = 8 #hjj units 9 a mutual fund tru/ ) 8 #aiid return4 ,he designat$ ! fair m>ket value (! units at ! 5d ( ,febru>y #bb1 #aiid1 z 8 proce$s ( 4posi;n4 ,&rew claim$ capital ga9s reduc;ns ( 4#ejj 9 #aeg ,*apt] #d a#bh #aiig & 4#fjj 9 #aiih4 ,at ! 5d ( #bjjc1 8 exempt capital ga9s bal.e 0 4#b1bej4 ,9 #bjjd1 he _h a 4#ice capital ga9 f ! sale ( #cjj units4 ,? left hm ) an unus$ bal.e ( 4#a1cae at ! 5d ( #bjjd4 ,9 #bjje & future ye>s1 he c only add ! unus$ ,,ecgb 6! co/ ( any rema9+ units3 7#a7 ,,ecgb c>ry=w>d 6#bjjd """"""""""""""""""""""" 4#b1bej 7#b7 ,capital ga9s fl[$ \ 4#---- 7#c7 ,capital ga9s f 4posi;ns """"""""""""""" 4#ice 7#d7 ,l9e #b .plus l9e #c 4#ice 7#e7 ,capital ga9s reduc;n """"""" 4#ice 7#f7 ,unus$ ,,ecgb at ! 5d ( #bjjd """""""""""""""""""""" 4#a1cae ,! unus$ ,,ecgb expir$ af #bjjd s ,&rew c add ? am.t 6! adju/$ co/ base ( 8 %>es (1 or 9t]e/ in1 ! fl[-"? 5t;y4 #aeh ,4pos+ ( yr %>es (1 or b#bh 9t]e/ in1 a fl[-"? 5t;y ,:5 y 4pose ( yr %>es (1 or 9t]e/ in1 a fl[-"? 5t;y1 calculate ! capital ga9 or loss 9 ! same way z ) any o!r 4posi;n ( capital prop]ty ,7proce$s ( 4posi;n m9us ! adju/$ co/ base 7,,acb7 & \tlays & exp5ses7'4 ,report ^! 4posi;ns on ,s*$ule #c z foll[s3 --= %>es (a fl[-"? 5t;y1 use ! 8,publicly trad$ %>es1 mutual fund units & o!r %>es0 sec;n2 or --= an 9t]e/ 9 a fl[-"? 5t;y1 use ! 8,bonds1 deb5tures1 promissory notes1 & o!r simil> prop]ties0 sec;n4 ,= m 9=m,n1 see ,*apt] #b on page #ac4 ,if y fil$ ,=m ,t#ffd = yr %>es (1 or 9t]e/ in1 a fl[-"? 5t;y1 &! proce$s ( 4posi;n 7 m ?an ! fair m>ket value1 ! ,,acb ( yr 9ve/;ts may 2 a6ect$4 ,= #aei ,*apt] #d c#bh 9=m,n1 see 8,prop]ty = : y fil$ ,=m ,t#ffd or ,t#ffd7,s5iors70 on page #ba4 ,c]ta9 circum/.es may cr1te a special situ,n =a fl[-"? 5t;y describ$ 9 items #a 6#f (! sec;n call$ 8,:at is a fl[-"? 5t;y80 on ? page4 ,? happ5s if y 4pose ( yr rema9+ %>es (1 or 9t]e/ in1 s* an 5t;y 9 ! #aiid 6#bjjf tax ye>s & h fil$ ,=m ,t#ffd4 ,if ? is ! case1 9 ! ye> y 4pose (! %>es1 use ! ,,ecgb availa# =! 5t;y immly 2f ! 4posi;n 69cr1se ! ,,acb (! %>es or 9t]e/s4 ,! ,,acb adju/;t w ei reduce yr capital ga9 or w cr1te or 9cr1se yr capital loss f 4pos+ (! %>es or 9t]e/ 9 ! fl[-"? 5t;y4 #afj ,*apt] #e--,capital losses d#bh ,y h a capital loss :5 y sell1 or >e 3sid]$ 6h sold1 a capital prop]ty = less ?an xs adju/$ co/ base plus ! \tlays & exp5ses 9volv$ 9 sell+ ! prop]ty4 ,? *apt] expla9s h[ to3 --det]m9e yr adju/;t factor2 --report yr #bjjf net capital losses2 --apply yr unus$ #bjjf net capital losses ag/ yr taxa# capital ga9s ( o!r ye>s2 & --apply yr unus$ net capital losses ( o!r ye>s ag/ yr #bjjf taxa# capital ga9s4 ,x al expla9s ! special rules t apply 6li/$ p]sonal prop]ty losses1 sup]ficial losses1 re/rict$ f>m losses1 & all[a# busi;s 9ve/;t losses4 ,y w f9d a summ>y (! loss applic,n rules on page #ch4 ,g5],y1 if y _h an all[a# capital loss 9 a ye>1 y h 6apply x ag/ yr taxa# capital ga9 = t ye>4 ,if y / h a #afa ,*apt] #e e#bh loss1 x 2comes "p (! -put,n ( yr net capital loss =! ye>4 ,y c use a net capital loss 6reduce yr taxa# capital ga9 9 any (! ?ree prec$+ ye>s or 9 any future ye>4 ,example ,9 #bjjf1 ,l1h sold two di6]5t securities1 : result$ 9 a taxa# capital ga9 ( 4#cjj 7"o-half multipli$ 04#fjj7 & an all[a# capital loss ( 4#ejj 7"o-half multipli$ 04#a1jjj74 ,af apply+ h] all[a# capital loss ag/ h] taxa# capital ga91 ,l1h has 4#bjj 74#ejj m9us 4#cjj7 ( unappli$ all[a# capital losses4 ,:ile %e _c deduct ! 4#bjj f o!r s\rces ( 9come 9 #bjjf1 ! 4#bjj 2comes "p (! -put,n ( h] net capital loss = #bjjf4 ,%e c apply ! net capital loss ag/ h] taxa# capital ga9s 9 any (! ?ree prec$+ ye>s or 9 any future ye>4 #afb ,*apt] #e f#bh ,l1h -pletes ,s*$ule #c & atta*es x 6h] #bjjf return4 ,? w 5sure t h] net capital loss is updat$ on \r records4 ,note ,:5 det]m9+ yr capital losses1 special rules apply if y 4pos$ (3 --deprecia# prop]ty 7= details1 see page #af72 or --p]sonal-use prop]ty 7= details1 see page #ah74 ,9clu.n rate 7,,ir7 ,! rate us$ 6det]m9e 8taxa# capital ga9s0 & 8all[a# capital losses0 7z def9$ 9 ! ,gloss>y on page #e71 call$ an .9clu.n .rate1 has *ang$ ov] ! -------------------------------------#bi ye>s4 ,z a result1 ! am.t ( net capital losses ( o!r ye>s t y c claim ag/ yr taxa# capital ga9 dep5ds on ! 9clu.n rate t 0 9 e6ect :5 ! loss &! ga9 7 9curr$4 ,al1 ! way y apply ^! #afc ,*apt] #e a#bi losses may di6] if y 9curr$ !m 2f ,may #bc1 #aihe4 ,= m 9=m,n1 see 8,h[ d y apply yr net capital losses ( o!r ye>s 6#bjjf80 on page #bi4 ,p]iod net capital loss 9curr$ ,2f ,may #bc1 #aihe ,9clu.n rate "o-half 7#ej@3p7 ,af ,may #bb1 #aihe1 & 2f #aihh ,9clu.n rate "o-half 7#ej@3p7 ,9 #aihh & #aihi ,9clu.n rate two-?irds 7#ff.ffff@3p7 ,f #aiij 6#aiii ,9clu.n rate ?ree-qu>t] 7#ge@3p7 ,9 #bjjj ,9clu.n rate ,,ir 99 ,f #bjja 6#bjjf ,9clu.n rate "o-half 7#ej@3p7 99 ,? rate is f l9e #af 9 ,"p #d ( ,s*$ule #c = #bjjj1 or f yr ,notice ( ,assess;t or late/ ,notice ( ,reassess;t = #bjjj4 #afd ,*apt] #e b#bi ,if y _h a capital loss or ga9 9 #bjjf1 y %d h -plet$ ,s*$ule #c1 ,capital ,ga9s 7or ,losses7 9 #bjjf4 ,h[ d y apply yr #bjjf net capital loss 6previ\s ye>s8 ,y c c>ry yr #bjjf net capital loss back 6#bjjc1 #bjjd1 & #bjje & use x 6reduce yr taxa# capital ga9s 9 any ( ^! ye>s4 ,:5 y c>ry back yr net capital loss1 y c *oose ! ye>7s7 6: y apply ! loss4 ,note ,:5 y apply a net capital loss back 6a previ\s ye>'s taxa# capital ga91 x w reduce yr taxa# 9come = t previ\s ye>4 ,h["e1 yr net 9come1 : is us$ 6calculate c]ta9 cr$its & b5efits1 w n *ange4 ,if y c>ry yr #bjjf net capital loss back 6#bjjc1 #bjjd1 or #bjje1 y #afe ,*apt] #e c#bi .d .n h 6adju/ ! am.t (! #bjjf net capital loss s9ce ! 9clu.n rate is ! same = ^! ye>s4 ,6apply a #bjjf net capital loss 6#bjjc1 #bjjd1 or #bjje1 -plete 8,>ea ,,iii--,net capital loss = c>ryback0 on ,=m ,t#a;,a1 ,reque/ = ,loss ,c>ryback4 ,x w al help y det]m9e ! am.t y h left 6c>ry =w>d 6future ye>s4 ,y c get ,=m ,t#a;,a f u 7see ! sec;n call$ 8,:at if y ne$ help80 on page #b74 .,d .n file an am5d$ return =! ye> 6: y want 6apply ! loss4 ,note ,if y apply a #bjjf net capital loss 6a previ\s ye>1 any capital ga9s deduc;n t y claim$ 9 t ye>1 or a foll[+ ye>1 may 2 reduc$4 #aff ,h[ d y apply yr net d#bi capital losses ( o!r ye>s 6#bjjf8 ,y c apply yr net capital losses ( o!r ye>s 6yr taxa# capital ga9s 9 #bjjf4 ,6d ?1 claim a deduc;n on l9e #bec ( yr #bjjf return4 ,h["e1 ! am.t y claim dep5ds on :5 y 9curr$ ! loss4 ,? is 2c ! 9clu.n rate us$ 6det]m9e taxa# capital ga9s & all[a# capital losses has *ang$ ov] ! ye>s4 ,! di6]5t 9clu.n rates >e li/$ e>li] on ? page4 ,note ,:5 y apply a net capital loss f a previ\s ye> 6! curr5t ye>'s taxa# capital ga91 x w reduce yr taxa# 9come =! curr5t ye>4 ,h["e1 yr net 9come1 : is us$ 6calculate c]ta9 cr$its & b5efits1 w n *ange4 ,y h 6apply net capital losses ( e>li] ye>s 2f y apply net capital losses ( lat] ye>s4 ,= example1 if y h net #afg ,*apt] #e e#bi capital losses 9 #aiid & #aiif & want 6apply !m ag/ yr taxa# capital ga9s 9 #bjjf1 y h 6foll[ a c]ta9 ord]4 ,f/1 apply yr #aiid net capital loss ag/ yr taxa# capital ga94 ,!n apply yr #aiif net capital loss ag/ x4 ,keep sep>ate bal.es ( unappli$ net capital losses = ea* ye>4 ,? w help y keep track ( yr capital losses4 ,y c use a net capital loss (a previ\s ye> 6reduce a taxa# capital ga9 9 #bjjf4 ,if ! 9clu.n rates =! two ye>s >e di6]5t1 y m/ adju/ ! am.t (! net capital loss 6mat* ! 9clu.n rate = #bjjf4 ,det]m9e ! adju/;t factor 0divid+ ! 9clu.n rate = #bjjf 0! 9clu.n rate =! ye> 9 : ! loss >ose4 ,example ,&rew r1liz$ a capital ga9 ( 4#e1jjj 9 #bjjf4 ,&rew's taxa# capital ga9 = #bjjf is 4#b1ejj 74#e1jjj multipli$ 0#ej@3p74 ,&rew has a net capital loss ( 4#a1jjj f #aiii 6apply ag/ 8 #afh ,*apt] #e f#bi taxa# capital ga9 ( 4#b1ejj4 ,s9ce ! 9clu.n rate 9 #aiii 0 #ge@3p1 he calculates ! adju/;t factor z foll[s3 ,9clu.n rate =! ye> 6: ! loss is appli$ divid$ 0,9clu.n rate =! ye> 9 : ! loss >ose equals #ej@3p divid$ 0#ge@3p equals #ff.ffff@3p ,6det]m9e ! net capital loss he c c>ry =w>d 6#bjjf1 ,&rew multiplies ! adju/;t factor 0! net capital loss = #aiii3 ,net capital loss = c>ry=w>d equals ,adju/;t factor "ts net capital loss equals #ff.ffff@3p "ts 4#a1jjj equals 4#fff.ff ,&rew claims ! adju/$ net capital loss ( 4#fff.ff on l9e #bec ag/ 8 taxa# capital ga9 ( 4#b1ejj report$ on l9e #abg ( 8 #bjjf return4 #afi ,*apt] #e g#bi ,use ,*>t #e on page #ca 6det]m9e yr net capital losses ( o!r ye>s t y c apply 6#bjjf & 6det]m9e yr unappli$ bal.e t y c c>ry =w>d 6future ye>s4 ,-plete ,*>t #e if y h a bal.e ( unappli$ net capital losses f 2f ,may #bc1 #aihe1 or y want to -------------------------------------#cj keep a br1kd[n ( yr unappli$ net capital losses 0ye>4 ,h["e1 if y d n h a bal.e ( unappli$ net capital losses f 2f ,may #bc1 #aihe1 & yr #bjje ,notice ( ,assess;t or ,reassess;t %[s t y h unappli$ net capital losses ( o!r ye>s &/or a #bjje net capital loss1 y c use ! foll[+ *>t 6det]m9e yr net capital losses ( o!r ye>s t y c apply 6#bjjf3 #agj ,*>t #d--,apply+ net a#cj capital losses ( o!r ye>s 6#bjjf 7#a7 ,total unappli$ net capital losses availa# f 2f #bjje 7f yr #bjje ,notice ( ,assess;t or ,reassess;t7 """""""""""""""""" 4#---- 7#b7 ,yr #bjje net capital loss 7f yr #bjje ,notice ( ,assess;t or ,reassess;t7 """"""""""""""" 4#---- 7#c7 ,l9e #a .plus ,l9e #b """""" 4#---- 7#d7 ,yr #bjjf taxa# capital ga9s 7f l9e #abg ( yr #bjjf return7 """"" 4#---- 7#e7 ,5t] ! am.t f l9e #c or l9e #d1 .:i*"e .is .less """""""""""""""""" 4#---- 7#f7 ,y c apply all1 or "p (1 ! am.t on l9e #e ag/ yr taxa# capital ga9s 9 #bjjf4 ,5t] on l9e #f ! am.t ( losses y want 6claim & 5t] ? am.t on #aga ,*apt] #e b#cj l9e #bec ( yr #bjjf return4 """"""""""""""""""""""" 4#---- 7#g7 ,bal.e ( unappli$ net capital losses ( o!r ye>s n us$ 6reduce taxa# capital ga9s & availa# 6c>ry =w>d 6future ye>s 7l9e #c .m9us l9e #f7 """"""""" 4#---- ,losses 9curr$ 2f ,may #bc1 #aihe ,special rules apply 6losses y 9curr$ 2f ,may #bc1 #aihe4 ,? al 9cludes losses y 9curr$ af ,may #bb1 #aihe1 on any 4posi;n ( capital prop]ty made "u an agree;t ( sale y 5t]$ 962f ,may #bc1 #aihe4 ,usu,y1 y c apply net capital losses ( o!r ye>s only ag/ taxa# capital ga9s4 ,h["e1 if y 9curr$ ! losses 2f ,may #bc1 #aihe1 y may use !m 6(fset o!r 9come4 ,once y h appli$ yr net capital losses ( o!r ye>s ag/ taxa# capital ga9s1 y c use #agb ,*apt] #e c#cj any excess 6(fset o!r 9come4 ,! am.t y c use is limit$ 6! .l1/ (3 --! excess am.t1 4#b1jjj2 .or --yr ..pre-#aihf capital loss .bal.e availa# = #bjjf4 ,yr ..pre-#aihf capital loss .bal.e availa# = #bjjf is3 --! unappli$ bal.e ( yr total net capital losses t y _h at any "t 2f ,may #bc1 #aihe2 .m9us --! total adju/$ am.t ( capital ga9s deduc;ns t y claim$ 2f #bjjf4 ,if y _h a net capital loss dur+ ! p]iod f ,janu>y #a1 #aihe1 6,may #bb1 #aihe1 & y _h taxa# capital ga9s lat] 9 #aihe1 yr taxa# capital ga9s w reduce yr pre-#aihf capital loss bal.e4 #agc ,*>t #e--,apply+ net capital #ca losses ( o!r ye>s 6#bjjf 7= cli5ts )a pre-#aihf capital loss bal.e7 ,use ? *>t 6apply yr net capital losses ( o!r ye>s 6#bjjf & 6calculate yr bal.e ( unappli$ losses y c c>ry =w>d 6a future ye>4 ,:5 y -plete ? *>t1 replace 8.,,ir0 ) yr 9clu.n rate = #bjjj4 ,? rate is f l9e #af 9 ,"p #d ( ,s*$ule #c = #bjjj1 or f yr ,notice ( ,assess;t or late/ ,notice ( ,reassess;t = #bjjj4 ,/ep #a--,pre-#aihf capital loss bal.e availa# = #bjjf ,-plete ? /ep only if y h a bal.e ( unappli$ net capital losses f 2f ,may #bc1 #aihe4 ,o!rwise1 5t] 8#j0 on l9e #c & g 6,/ep #b4 #agd ,*apt] #e a#ca 7#a7 ,bal.e ( unappli$ net capital losses y _h 2f ,may #bc1 #aihe """""""""""""""""""" 4#---- 7#b7 ,capital ga9s deduc;ns y claim$3 ,2f #aihh """""""""""""" 4#---- ,9 #aihh & #aihi 4#---- "ts ?ree-qu>t]s """""" 4#---- ,f #aiij 6#aiii 4#---- "ts two-?irds """""""" 4#---- ,9 #bjjj 4#---- "ts ,7#a divid$ by 7#b multipli$ 0,,ir77' """ 4#---- ,f #bjja 6#bjje """""""" 4#---- ,total capital ga9s deduc;ns af adju/;t "" 4#---- 4#---- 7#c7 ,pre-#aihf capital loss bal.e availa# = #bjjf 7l9e #a .m9us l9e #b7 """"""""""""""""""""""""""" 4#---- #age ,/ep #b--,apply+ net b#ca capital losses ( o!r ye>s 6#bjjf ,-plete l9es ;,a 6;,c (! ta# 9 ,/ep #c 7on ! next page7 2f proce$+4 7#d7 ,total unappli$ adju/$ net capital losses ( o!r ye>s 7total f l9e ;,c 9 ,/ep #c on ! next page7 """""""""""""""""""" 4#---- 7#e7 ,taxa# capital ga9s f l9e #abg ( yr #bjjf return """"""""""""""""" 4#---- 7#f7 ,5t] ! am.t f l9e #d or l9e #e1 .:i*"e .is .less """""""""""""""""" 4#---- 7#g7 ,y c apply all1 or "p1 (! am.t on l9e #f ag/ yr taxa# capital ga9s 9 #bjjf4 ,5t] on l9e #g ! am.t ( losses y want 6claim """"""""""""""""""" 4#---- #agf ,*apt] #e c#ca ..,if y did n -plete ,/ep .#a1 5t] ! am.t f l9e #g on l9e #bec ( yr #bjjf return4 ,? is yr deduc;n 9 #bjjf = net capital losses ( o!r ye>s4 ,d n -plete l9es #h 6#ae & 5t] ? same am.t on l9e #af 9 ,/ep #c4 ,h["e1 -plete l9es ;,d 6;,g 9 ,/ep #c ( ? ta# 7on ! next page7 6calculate ! net capital losses availa# 6c>ry =w>d 6future ye>s4 ..,if y -plet$ ,/ep .#a1 -plete l9es #h 6#af & l9es ;,d 6;,g 9 ,/ep #c ( ? ta# 7on ! next page7 6calculate ! net capital losses availa# 6c>ry =w>d 6future ye>s4 7#h7 ,bal.e ( unappli$ adju/$ net capital losses ( o!r ye>s n us$ 6reduce taxa# capital ga9s 7l9e #d .m9us l9e #g7 """""""""""""" 4#---- 7#i7 ,am.t f l9e #h """""" 4#---- 7#aj7 ,am.t f l9e #c """"" 4#---- #agg ,*apt] #e d#ca 7#aa7 ,pre-#aihf deducti# am.t """"""""""""""""""" 4#b1jjj 7#ab7 ,l9e #i1 #aj1 or #aa1 .:i*"e .is .less """"""""" 4#---- 7#ac7 ,deduc;n 9 #bjjf = net capital losses ( o!r ye>s 7l9e #g .plus l9e #ab74 ,5t] ? am.t on l9e #bec ( yr #bjjf return & -plete ! re/ (! *>t 7on ! next page7 6det]m9e yr bal.e ( unappli$ net capital losses availa# 6c>ry =w>d4 """"""""""" 4#---- -------------------------------------#cb ,/ep #c--,calculat+ yr bal.e ( unappli$ net capital losses ( o!r ye>s availa# 6c>ry =w>d 7#ad7 ,am.t f l9e #g """""""""""" 4#---- 7#ae7 ,am.t f l9e #ab """"""""""" 4#---- 7#af7 ,total adju/$ net capital losses ( o!r ye>s appli$ 9 #bjjf 7l9e #ad .plus l9e #ae7 4#---- #agh ,*apt] #e a#cb ,:5 y -plete ? ta#1 replace 8.,,ir0 ) yr 9clu.n rate = #bjjj4 ,? rate is f l9e #af 9 ,"p #d ( ,s*$ule #c = #bjjj1 or f yr ,notice ( ,assess;t or late/ ,notice ( ,reassess;t = #bjjj4 7,d n -plete ! %ad$ >1s7 7,a7 ,am.t ( yr unappli$ net capital losses ,2f ,may #bc1 #aihe3 4#---- ,af ,may #bb1 #aihe1 & 2f #aihh3 4#---- ,9 #aihh & #aihi3 4#---- ,af #aihi & 2f #bjjj3 4#---- ,9 #bjjj3 4#---- ,af #bjjj & 2f #bjjf3 4#---- ,total3 %ad$ >ea 7,b7 ,adju/;t factor ,2f ,may #bc1 #aihe3 #a ,af ,may #bb1 #aihe1 & 2f #aihh3 #a ,9 #aihh & #aihi3 ?ree-qu>t]s ,af #aihi & 2f #bjjj3 two-?irds ,9 #bjjj3 #a divid$ 0#b "ts ,,ir #agi ,*apt] #e b#cb ,af #bjjj & 2f #bjjf3 #a ,total3 %ad$ >ea 7,c7 7,l9e ;,a "ts l9e ;,b7 ,2f ,may #bc1 #aihe3 4#---- ,af ,may #bb1 #aihe1 & 2f #aihh3 4#---- ,9 #aihh & #aihi3 4#---- ,af #aihi & 2f #bjjj3 4#---- ,9 #bjjj3 4#---- ,af #bjjj & 2f #bjjf3 4#---- ,total3 4#---- 7,d7 ,total adju/$ net capital losses appli$ ag/ taxa# capital ga9s 9 #bjje 7! total m/ equal ! am.t on l9e #af7 ,2f ,may #bc1 #aihe3 4#---- ,af ,may #bb1 #aihe1 & 2f #aihh3 4#---- ,9 #aihh & #aihi3 4#---- ,af #aihi & 2f #bjjj3 4#---- ,9 #bjjj3 4#---- ,af #bjjj & 2f #bjjf3 4#---- ,total3 4#---- #ahj ,*apt] #e c#cb 7,e7 7,l9e ;,c m9us l9e ;,d7 ,2f ,may #bc1 #aihe3 4#---- ,af ,may #bb1 #aihe1 & 2f #aihh3 4#---- ,9 #aihh & #aihi3 4#---- ,af #aihi & 2f #bjjj3 4#---- ,9 #bjjj3 4#---- ,af #bjjj & 2f #bjjf3 4#---- ,total3 99 4#---- 99 ,! total = l9e ;,e %d 2 equal 6! am.t %[n on yr ,notice ( ,assess;t or ,reassess;t = net capital losses ( o!r ye>s availa# = #bjjg4 7,f7 ,adju/;t factor ,2f ,may #bc1 #aihe3 #a ,af ,may #bb1 #aihe1 & 2f #aihh3 #a ,9 #aihh & #aihi3 f\r-?irds ,af #aihi & 2f #bjjj3 ?ree-halves ,9 #bjjj3 two "ts ,,ir ,af #bjjj & 2f #bjjf3 #a ,total3 %ad$ >ea #aha ,*apt] #e d#cb 7,g7 ,net capital losses availa# 6c>ry =w>d 6future ye>s 7,l9e ;,e "ts l9e ;,f7 ,2f ,may #bc1 #aihe3 4#---- ,af ,may #bb1 #aihe1 & 2f #aihh3 4#---- ,9 #aihh & #aihi3 4#---- ,af #aihi & 2f #bjjj3 4#---- ,9 #bjjj3 4#---- ,af #bjjj & 2f #bjjf3 4#---- ,total3 %ad$ >ea -------------------------------------#cc ,example ,j]ry has unappli$ net capital losses ( 4#f1jjj he 9curr$ 2f ,may #bc1 #aihe4 ,he claim$ a capital ga9s deduc;n ( 4#ejj 9 #aihf &( 4#cjj 9 #bjjj 7,j]ry's 9clu.n rate 9 #bjjj 0 two-?irds or #ff.ffff@3p74 ,j]ry al has ! foll[+ unappli$ net capital losses3 4#d1jjj f #aihh & 4#f1jjj f #aiij4 ,he report$ a taxa# capital ga9 ( 4#aj1jjj on l9e #abg ( 8 #bjjf return4 ,he -pletes ,*>t #e #ahb ,*apt] #e a#cc 6calculate ! maximum deduc;n he c claim = 8 unappli$ net capital losses ( o!r ye>s 9 #bjjf & 6det]m9e ! loss bal.e t he c c>ry =w>d 6a future ye>4 ,/ep #a--,pre-#aihf capital loss bal.e availa# = #bjjf ,-plete ? /ep .only if y h a bal.e ( unappli$ net capital losses f 2f ,may #bc1 #aihe4 ,o!rwise1 5t] 8#j0 on l9e #c & g 6,/ep #b4 7#a7 ,bal.e ( unappli$ net capital losses y _h 2f ,may #bc1 #aihe """""""""""""""""""""""" 4#f1jjj 7#b7 ,capital ga9s deduc;ns y claim$3 ,2f #aihh """"""""""""" 4#ejj ,9 #aihh & #aihi 4#---- "ts ?ree- qu>t]s """"""""""""" 4#---- #ahc ,*apt] #e b#cc ,f #aiij 6#aiii 4#---- "ts two- ?irds """""""""""""" 4#---- ,9 #bjjj 4#cjj "ts ,7#a divid$ by 7#b "ts two-?irds77' """" 4#bbe ,f #bjja 6#bjje """""" 4#---- ,total capital ga9s deduc;ns af adju/;t """""""""""" 4#gbe """ 4#gbe 7#c7 ,pre-#aihf capital loss bal.e availa# = #bjjf 7l9e #a .m9us l9e #b7 """""""""""""""" 4#e1bge ,/ep #b--,apply+ net capital losses ( o!r ye>s 6#bjjf ,-plete l9es ;,a 6;,c (! ta# 9 ,/ep #c 7on ! next page7 2f proce$+4 #ahd ,*apt] #e c#cc 7#d7 ,total unappli$ adju/$ net capital losses ( o!r ye>s 7total f l9e ;,c 9 ,/ep #c on ! next page7 """""""""""""""" 4#ac1jjj 7#e7 ,taxa# capital ga9s f l9e #abg ( yr #bjjf return """"""" 4#aj1jjj 7#f7 ,5t] ! am.t f l9e #d or l9e #e1 .:i*"e .is .less """""""""" 4#aj1jjj 7#g7 ,y c apply all1 or "p1 (! am.t on l9e #f ag/ yr taxa# capital ga9s 9 #bjjf4 ,5t] on l9e #g ! am.t ( losses y want 6claim """"""""""""""""" 4#aj1jjj ..,if y did n -plete ,/ep .#a1 5t] ! am.t f l9e #g on l9e #bec ( yr #bjjf return4 ,? is yr deduc;n 9 #bjjf = net capital losses ( o!r ye>s4 ,d n -plete l9es #h 6#ae & 5t] ? same am.t on l9e #af 9 ,/ep #c4 ,h["e1 -plete #ahe ,*apt] #e d#cc l9es ;,d 6;,g 9 ,/ep #c ( ? ta# 7on ! next page7 6calculate ! net capital losses availa# 6c>ry =w>d 6future ye>s4 ..,if y -plet$ ,/ep .#a1 -plete l9es #h 6#af & l9es ;,d 6;,g 9 ,/ep #c ( ? ta# 7on ! next page7 6calculate ! net capital losses availa# 6c>ry =w>d 6future ye>s4 7#h7 ,bal.e ( unappli$ adju/$ net capital losses ( o!r ye>s n us$ 6reduce taxa# capital ga9s 7l9e #d .m9us l9e #g7 """ 4#c1jjj 7#i7 ,am.t f l9e #h """" 4#c1jjj 7#aj7 ,am.t f l9e #c """ 4#e1bge 7#aa7 ,pre-#aihf deducti# am.t """""""" 4#b1jjj 7#ab7 ,l9e #i1 #aj1 or #aa1 .:i*"e .is .less """""""""""""""""""""""" 4#b1jjj 7#ac7 ,deduc;n 9 #bjjf = net capital losses ( o!r ye>s 7l9e #ahf ,*apt] #e e#cc #g .plus l9e #ab74 ,5t] ? am.t on l9e #bec ( yr #bjjf return & -plete ! re/ (! *>t 7on ! next page7 6det]m9e yr bal.e ( unappli$ net capital losses availa# 6c>ry =w>d4 """"""""" 4#ab1jjj -------------------------------------#cd ,/ep #c--,calculat+ yr bal.e ( unappli$ net capital losses ( o!r ye>s availa# 6c>ry =w>d 7#ad7 ,am.t f l9e #g """""""""" 4#aj1jjj 7#ae7 ,am.t f l9e #ab """""""""" 4#b1jjj 7#af7 ,total adju/$ net capital losses ( o!r ye>s appli$ 9 #bjjf 7l9e #ad .plus l9e #ae7 4#ab1jjj ,:5 y -plete ? ta#1 replace 8.,,ir0 ) yr 9clu.n rate = #bjjj4 ,? rate is f l9e #af 9 ,"p #d ( ,s*$ule #c = #bjjj1 or f yr ,notice ( ,assess;t or late/ ,notice ( ,reassess;t = #bjjj4 7,d n -plete ! %ad$ >1s7 #ahg ,*apt] #e a#cd 7,a7 ,am.t ( yr unappli$ net capital losses ,2f ,may #bc1 #aihe3 4#f1jjj ,af ,may #bb1 #aihe1 & 2f #aihh3 4#j ,9 #aihh & #aihi3 4#d1jjj ,af #aihi & 2f #bjjj3 4#f1jjj ,9 #bjjj3 4#j ,af #bjjj & 2f #bjjf3 4#j ,total3 %ad$ >ea 7,b7 ,adju/;t factor ,2f ,may #bc1 #aihe3 #a ,af ,may #bb1 #aihe1 & 2f #aihh3 #a ,9 #aihh & #aihi3 ?ree-qu>t]s ,af #aihi & 2f #bjjj3 two-?irds ,9 #bjjj3 #a divid$ 0#b "ts ,,ir ,af #bjjj & 2f #bjjf3 #a ,total3 %ad$ >ea 7,c7 7,l9e ;,a "ts l9e ;,b7 ,2f ,may #bc1 #aihe3 4#f1jjj ,af ,may #bb1 #aihe1 & 2f #aihh3 4#j ,9 #aihh & #aihi3 4#c1jjj ,af #aihi & 2f #bjjj3 4#d1jjj ,9 #bjjj3 4#j #ahh ,*apt] #e b#cd ,af #bjjj & 2f #bjjf3 4#j ,total3 4#ac1jjj 7,d7 ,total adju/$ net capital losses appli$ ag/ taxa# capital ga9s 9 #bjje 7! total m/ equal ! am.t on l9e #af7 ,2f ,may #bc1 #aihe3 4#f1jjj ,af ,may #bb1 #aihe1 & 2f #aihh3 4#j ,9 #aihh & #aihi3 4#c1jjj ,af #aihi & 2f #bjjj3 4#c1jjj ,9 #bjjj3 4#j ,af #bjjj & 2f #bjjf3 4#j ,total3 4#ab1jjj 7,e7 7,l9e ;,c m9us l9e ;,d7 ,2f ,may #bc1 #aihe3 4#j ,af ,may #bb1 #aihe1 & 2f #aihh3 4#j ,9 #aihh & #aihi3 4#j ,af #aihi & 2f #bjjj3 4#a1jjj ,9 #bjjj3 4#j ,af #bjjj & 2f #bjjf3 4#j ,total3 99 4#a1jjj 99 ,! total = l9e ;,e %d 2 equal 6! am.t %[n on yr ,notice ( ,assess;t or #ahi ,*apt] #e c#cd ,reassess;t = net capital losses ( o!r ye>s availa# = #bjjg4 7,f7 ,adju/;t factor ,2f ,may #bc1 #aihe3 #a ,af ,may #bb1 #aihe1 & 2f #aihh3 #a ,9 #aihh & #aihi3 f\r-?irds ,af #aihi & 2f #bjjj3 ?ree-halves ,9 #bjjj3 #b "ts ,,ir ,af #bjjj & 2f #bjjf3 #a ,total3 %ad$ >ea 7,g7 ,net capital losses availa# 6c>ry =w>d 6future ye>s 7,l9e ;,e "ts l9e ;,f7 ,2f ,may #bc1 #aihe3 4#j ,af ,may #bb1 #aihe1 & 2f #aihh3 4#j ,9 #aihh & #aihi3 4#j ,af #aihi & 2f #bjjj3 4#a1ejj ,9 #bjjj3 4#j ,af #bjjj & 2f #bjjf3 4#j ,total3 4#a1ejj ,j]ry has 6apply 8 old] losses f/4 ,2c ! total am.t ( adju/$ losses t #aij ,*apt] #e d#cd he us$ 9 #bjjf 0 4#ab1jjj 7f l9e #af abv71 he applies 4#f1jjj ( 8 adju/$ net capital losses 9curr$ 2f ,may #bc1 #aihe1 & 4#c1jjj ( 8 adju/$ net capital loss 9curr$ 9 #aihh4 ,he !n uses 4#c1jjj 74#ab1jjj m9us 4#f1jjj m9us 4#c1jjj7 ( 8 adju/$ net capital loss 9curr$ 9 #aiij4 ,j]ry has unappli$ net capital losses ( 4#a1ejj t he c c>ry =w>d 6a future ye>4 ,apply+ li/$ p]sonal prop]ty 7,,lpp7 losses ,y h an ,,lpp loss if1 9 a "picul> ye>1 yr losses f 4posi;ns ( ,,lpp >e m ?an yr ga9s f s* 4posi;ns4 ,if y h an ,,lpp loss1 r1d ? sec;n4 ,apply+ ? type ( loss is di6]5t f apply+ o!r capital losses 2c3 --y c only deduct losses f ! 4posi;n ( ,,lpp f any ga9s y _h f sell+ o!r ,,lpp2 #aia ,*apt] #e e#cd --! ,,lpp losses y deduct 9 ! ye> _c 2 m ?an yr ,,lpp ga9s f s* 4posi;ns = t ye>2 & --y _c use ? type ( loss 6reduce any capital ga9s y _h f sell+ o!r types ( prop]ty4 ,if y h an ,,lpp loss 9 #bjjf1 y c use ! loss 6reduce ga9s f 4posi;ns ( ,,lpp y _h 9 any (! ?ree ye>s 2f #bjjf or ! sev5 ye>s af4 ,= 9=m,n on h[ 6apply a prior-ye> ,,lpp loss 6#bjjf ga9s f 4posi;ns ( ,,lpp1 see 8,li/$ p]sonal prop]ty 7,,lpp70 on page #ai4 ,6c>ry back yr #bjjf ,,lpp losses 6reduce yr ,,lpp net ga9s f #bjjc1 #bjjd1 & #bjje1 -plete ,=m ,t#a;,a1 ,reque/ = ,loss ,c>ryback1 & 9clude x ) yr #bjjf return4 ,y c get ,=m ,t#a;,a f u 7see ! sec;n call$ 8,:at if y ne$ help80 on page #b74 .,d .n file an am5d$ return =! ye> 6: y want 6apply ! loss4 #aib ,*apt] #e f#cd ,example ,na?an b"\ "s jewell]y 9 #aiif = 4#e1hjj4 ,9 #bjjf1 he sold x = 4#f1jjj4 ,he 5d$ up )a ga9 ( 4#bjj4 ,he al sold a co9 collec;n = 4#b1jjj 9 #bjjf4 ,na?an _h orig9,y b"\ ? collec;n 9 #aiii = 4#a1gjj4 ,he 5d$ up )a ga9 ( 4#cjj :5 he sold ! co9 collec;n4 ,9 a4i;n1 he sold a pa9t+ 9 #bjjf = 4#h1jjj4 ,h["e1 ,na?an b"\ ! pa9t+ 9 #bjjj = 4#ab1jjj4 ,"!=e1 he _h a loss ( 4#d1jjj4 ,he _h no \tlays & exp5ses = ^! ?ree transac;ns4 ,na?an's loss f sell+ ,,lpp 9 #bjjf 0 m ?an 8 ga93 8 loss 0 4#d1jjj2 8 total ga9 0 4#ejj 74#bjj plus 4#cjj74 ,z a result1 8 net loss 0 4#c1ejj 74#d1jjj m9us 4#ejj74 ,na?an _c use ! di6];e 6(fset 8 capital ga9 on ! sale (a prop]ty o!r ?an on ,,lpp -------------------------------------#ce 9 ! ye>4 ,9 a4i;n1 he _c (fset any 9come he _h f o!r s\rces4 #aic ,*apt] #e a#ce ,h["e1 he c apply 8 ,,lpp loss ag/ 8 ga9s f 4posi;ns ( ,,lpp 9 any (! ?ree prec$+ ye>s or ! sev5 ye>s foll[+ #bjjf4 ,na?an %d n -plete ,s*$ule #c = #bjjf4 ,h["e1 he %d keep a record ( 8 ,,lpp loss 9 case he wants 6apply ! loss ag/ ,,lpp ga9s 9 ano!r ye>4 ,sup]ficial loss ,a sup]ficial loss c o3ur :5 y 4pose ( capital prop]ty =a loss &3 --y1 or a p]son a6iliat$ ) y1 buys1 or has a "r 6buy1 ! same or id5tical prop]ty 7call$ 8sub/itut$ prop]ty07 dur+ ! p]iod />t+ #cj cal5d> "ds 2f ! sale & 5d+ #cj cal5d> "ds af ! sale2 & --y1 or a p]son a6iliat$ ) y1 / [ns1 or has a "r 6buy1 ! sub/itut$ prop]ty #cj cal5d> "ds af ! sale4 #aid ,*apt] #e b#ce ,"s examples ( a6iliat$ p]sons >e3 --y & yr sp\se or -mon-law "pn]2 --y &a corpor,n t is 3troll$ 0y or yr sp\se or -mon-law "pn]2 --a "pn]%ip &a major;y-9t]e/ "pn] (! "pn]%ip2 & --af ,m>* #bb1 #bjjd1 a tru/ & xs major;y 9t]e/ b5efici>y 7g5],y1 a b5efici>y :o 5joys a major;y (! tru/ 9come or capital7 or "o :o is a6iliat$ ) s* a b5efici>y4 ,if y h a sup]ficial loss 9 #bjjf1 y _c deduct x :5 y calculate yr 9come =! ye>4 ,h["e1 if y >e ! p]son :o acquires ! sub/itut$ prop]ty1 y c usu,y add ! am.t (! sup]ficial loss 6! adju/$ co/ base (! sub/itut$ prop]ty4 ,? w ei decr1se yr capital ga9 or 9cr1se yr capital loss :5 y sell ! sub/itut$ prop]ty4 ,9 c]ta9 situ,ns1 :5 y 4pose ( capital prop]ty1 ! loss may n 2 3sid]$ a sup]ficial loss4 ,"s (! m -mon situ,ns 9clude ! foll[+3 #aie ,*apt] #e c#ce --y >e 3sid]$ 6h sold ! capital prop]ty 2c y 2came or c1s$ 6be a resid5t ( ,canada2 --y >e 3sid]$ 6h sold ! prop]ty 2c y *ang$ xs use2 --y 4pos$ (! prop]ty & )9 #cj cal5d> "ds af ! 4posi;n y 2came or c1s$ 6be exempt f 9come tax2 --! prop]ty is 3sid]$ 6h be5 sold 2c ! [n] di$2 --! 4posi;n results f ! expiry ( an op;n2 --! prop]ty is appropriat$ 0a %>ehold] on ! w9d+-up (a corpor,n2 or --non-deprecia# capital prop]ty is 4pos$ ( 0a corpor,n1 "pn]%ip1 or tru/4 ,9 ? situ,n1 al? ! loss is n a4$ 6! adju/$ co/ base (! transf]r$ prop]ty1 x is n claim$ immly b xs recogni;n is def]r$ p5d+ ! o3urr;e ( c]ta9 ev5ts4 ,= m 9=m,n1 3tact u4 #aif ,re/rict$ f>m loss 7,,rfl7 d#ce ,if y run yr f>m z a busi;s1 y may 2 a# 6deduct a f>m loss 9 ! ye>4 ,h["e1 if yr *ief s\rce ( 9come is nei f f>m+ nor f a -b9,n ( f>m+ & "s o!r s\rce ( 9come1 y c only deduct a por;n ( yr f>m loss =! ye>4 ,! por;n (! loss t y _c deduct 2comes an ,,rfl4 ,y c c>ry an ,,rfl 9curr$ 9 tax,n ye>s 5d+ 2f #bjjf back #c ye>s & =w>d up 6#aj ye>s4 ,/>t \tl9e ,y c n[ c>ry an ,,rfl 9curr$ 9 tax,n ye>s 5d+ af #bjje1 back #c ye>s & =w>d up 6.#bj ye>s4 ,5d \tl9e ,h["e1 ! am.t y c deduct 9 any ye> _c 2 m ?an yr net f>m+ 9come = t ye>4 ,= m 9=m,n on det]m9+ yr *ief s\rce ( 9come & h[ 6calculate an ,,rfl1 see guide ,t#djjc1 ,f>m+ ,9come1 guide ,,rc#djfj1 ,f>m+ ,9come &! ,,cais ,program1 or #aig ,*apt] #e e#ce ,,rc#ddjh1 ,f>m+ ,9come &! ,,cais ,program ,h>moniz$ ,guide4 ,y may h ,,rfl's t y 9curr$ 9 yr f>m+ op],n t y cd n deduct :5 y calculat$ yr 9come = previ\s ye>s4 ,y c apply "p ( ^! ,,rfl's ag/ any capital ga9 y may h :5 y sell yr f>ml&4 ,! am.t ( ,,rfl's t y c apply _c 2 m ?an ! prop]ty taxes &! 9t]e/ on m"oy y borr[$ 6buy ! f>ml& t 7 9clud$ 9 ! calcul,n (! ,,rfl's = ea* ye>4 ,reduce yr capital ga9 0a4+ ^! am.ts 6! adju/$ co/ base 7,,acb7 ( yr f>ml&4 ,al1 y h 6reduce yr ,,rfl bal.e 0^! am.ts4 ,y c only use ,,rfl's 6reduce any capital ga9 f sell+ yr f>ml& 6z]o4 ,y _c use an ,,rfl 6cr1te or 9cr1se a capital loss f sell+ f>ml&4 ,example ,fritz sold 8 f>ml& 9 #bjjf = 4#bjj1jjj4 ,! ,,acb (! prop]ty 0 4#afj1jjj4 ,fritz has an unappli$ ,,rfl ( 4#bj1jjj f #aiif4 ,? #aih ,*apt] #e f#ce am.t 9cludes 4#e1jjj = prop]ty taxes1 4#e1jjj = 9t]e/1 & 4#aj1jjj = o!r exp5ses4 ,fritz wants 6reduce 8 capital ga9 f sell+ 8 f>ml& 0apply+ 8 ,,rfl ag/ ! capital ga94 ,he calculates 8 capital ga9 z foll[s3 7,a7 ,proce$s ( 4posi;n """""""""""""""""""" 4#bjj1jjj 7,b7 ,adju/$ co/ base """"""""""""" 4#afj1jjj 7,c7 .,plus3 ,prop]ty taxes """"" 4#e1jjj 7,d7 ,9t]e/ """""""""" 4#e1jjj 7,e7 ,total """""""" 4#agj1jjj 4#agj1jjj 7,f7 ,capital ga9 7l9e ;,a .m9us l9e ;,e7 """""""""""""""""""""""" 4#cj1jjj -------------------------------------#cf ,fritz c only apply ! por;n ( 8 ,,rfl t relates 6prop]ty taxes & 9t]e/ on ! m"oy he borr[$ 6buy ! f>ml&4 #aii ,all[a# busi;s 9ve/;t loss a#cf 7,,abil7 ,if y _h a busi;s 9ve/;t loss 9 #bjjf1 y c deduct "o-half (! loss f 9come4 ,! am.t (! loss y c deduct f yr 9come is call$ yr all[a# busi;s 9ve/;t loss 7,,abil74 ,-plete ,*>t #f on page #cg 6det]m9e yr ,,abil &1 if applica#1 yr busi;s 9ve/;t loss reduc;n4 ,claim ! deduc;n =! ,,abil on l9e #bag ( yr return4 ,5t] ! gross busi;s 9ve/;t loss on l9e #bbh ( yr return4 ,:at is a busi;s 9ve/;t loss8 ,a busi;s 9ve/;t loss results f ! actual or deem$ 4posi;n ( c]ta9 capital prop]ties4 ,x c happ5 :5 y 4pose ( "o (! foll[+ 6a p]son y d1l ) at >m's l5g?3 --a %>e (a small busi;s corpor,n2 or --a debt [$ 6y 0a small busi;s corpor,n4 ,= busi;s 9ve/;t loss purposes1 a small busi;s corpor,n 9cludes a #bjj ,*apt] #e b#cf corpor,n t 0 a small busi;s corpor,n at any "t dur+ ! #ab mon?s 2f ! 4posi;n4 ,y may al h s* a loss if y >e deem$ 6h 4pos$ (1 = nil proce$s ( 4posi;n1 a debt or a %>e (a small busi;s corpor,n "u any (! foll[+ circum/.es3 --,a small busi;s corpor,n [es y a debt 7o!r ?an a debt f ! sale ( p]sonal-use prop]ty7 t is 3sid]$ 6be a bad debt at ! 5d (! ye>4 --,at ! 5d (! ye>1 y [n a %>e 7o!r ?an a %>e y rcvd z 3sid],n f ! sale ( p]sonal-use prop]ty7 (a small busi;s corpor,n t3 --has g"o bankrupt 9 ! ye>2 --is 9solv5t1 &a w9d+-up ord] has be5 made 9 ! ye> "u ! ,w9d+-up ,act2 or --is 9solv5t at ! 5d (! ye> & nei ! corpor,n1 nor a corpor,n x 3trols1 c>ries on busi;s4 ,al1 at t "t1 ! %>e 9 ! corpor,n has a fair m>ket value ( nil1 & x is r1sona# #bja ,*apt] #e c#cf 6expect t ! corpor,n w 2 4solv$ or w.d up & w n />t 6c>ry on busi;s 994 99 ,y or a p]son t y d n d1l ) at >m's l5g? w 2 deem$ 6h r1liz$ an (fsett+ capital ga9 if ! corpor,n1 or a corpor,n x 3trols1 c>ries on busi;s )9 #bd mon?s foll[+ ! 5d (! ye> 9 : ! 4posi;n o3urr$4 ,y or t p]son w h 6report ! capital ga9 9 ! tax ye> ! corpor,n />ts 6c>ry on busi;s4 ,? applies if y or ! p]son [n$ ! %>e 9 ! corpor,n at ! "t ! busi;s />t$4 ,y c elect 6be deem$ 6h 4pos$ (! debt or ! %>e (! small busi;s corpor,n at ! 5d (! ye> = nil proce$s ( 4posi;n1 & 6h immly reacquir$ ! debt or ! %>e af ! 5d (! ye> at a co/ equal 6nil4 ,6d ?1 y h 6file an elec;n ) yr return4 ,6make ? elec;n1 atta* 6yr return a lr sign$ 0y4 ,/ate t y want .subsec;n .#ej7#a7 (! ,9come ,tax ,act 6apply4 #bjb ,:at happ5s :5 y 9cur an d#cf ,,abil8 ,y c deduct yr ,,abil f yr o!r s\rces ( 9come =! ye>4 ,if yr ,,abil is m ?an yr o!r s\rces ( 9come =! ye>1 9clude ! di6];e z "p ( yr non-capital loss4 ,y c c>ry a non-capital loss >is+ 9 #bjjc or prior ye>s1 back ?ree ye>s & =w>d sev5 ye>s4 ,y c c>ry a non-capital loss >is+ 9 tax,n ye>s 5d+ af ,m>* #bb1 #bjjd back ?ree ye>s & =w>d #aj ye>s4 ,al? y c g5],y c>ry a non-capital loss >is+ 9 tax,n ye>s 5d+ af #bjje1 back ?ree ye>s & =w>d #bj ye>s1 ? ext5.n does .n apply 6a non-capital loss result+ f an ,,abil4 ,9/1d1 an ,,abil t has n be5 us$ )9 t5 tax ye>s w 3t9ue 62come a net capital loss 9 ! elev5? ye>4 ,6c>ry a non-capital loss back 6#bjjc1 #bjjd1 or #bjje1 -plete ,=m ,t#a;,a1 ,reque/ = ,loss ,c>ryback1 & 9clude x ) yr #bjjf return4 ,y c get ,=m ,t#a;,a f u 7see ! sec;n call$ 8,:at if y #bjc ,*apt] #e e#cf ne$ help80 on page #b74 .,d .n file an am5d$ return =! ye> 6: y want 6apply ! loss4 ,if y _c deduct yr ,,abil >is+ 9 #bjjc or prior ye>s z a non-capital loss 0! 5d (! sev5? ye>1 ! unappli$ "p 2comes a .net capital loss4 ,y c use ? loss 6reduce yr taxa# capital ga9s 9 ! ei or any ye> af4 ,= example1 ,ca?y _h an ,,abil 9 #aiig t 2came a non-capital loss & t %e 0 n a# 6deduct 9 ! ?ree ye>s 2f #aiig or ! sev5 ye>s af #aiig4 ,%e c n[ use ! loss 6reduce h] taxa# capital ga9s 9 #bjjf or any ye> af4 ,! unappli$ "p ( yr non-capital loss result+ f an ,,abil >is+ 9 #bjjd or future ye>s w 2come a net capital loss 9 ! elev5? ye>4 ,note ,any ,,abil t y claim = #bjjf w reduce ! capital ga9s deduc;n y c claim 9 #bjjf & 9 future ye>s4 #bjd ,*>t #f--,h[ 6claim an #cg all[a# busi;s 9ve/;t loss 7,a7 ,/ep #a ,busi;s 9ve/;t loss 9 #bjjf 75t] ? am.t on l9e #bbh ( yr return7 """""""""""""""""" 4#---- 7,b7 ,/ep #b ,if y claim$ a capital ga9s deduc;n 9 a previ\s ye>1 y h 6reduce yr busi;s 9ve/;t loss4 ,6det]m9e ! reduc;n1 -plete ! calcul,n 2l & 5t] ! result f l9e #ae4 ,o!rwise1 5t] 8#j40 """"""""""" 4#---- 7,c7 ,l9e ;,a .m9us l9e ;,b """"" 4#---- ,/ep #c ,all[a# busi;s 9ve/;t loss4 ,am.t f l9e ;,c 4#---- "ts "o-half4 ,5t] ! am.t f l9e ;,d on l9e #bag ( yr return4 "" 4#---- ,/ep #d ,atta* a note 6yr return t /ates !3 --"n (! small busi;s corpor,n2 --numb] & class ( %>es1 or ! type ( debt y 4pos$ (2 #bje ,*apt] #e a#cg --9solv5cy1 bankruptcy1 or w9d-up date2 --date y b"\ ! %>es1 or ! date y acquir$ ! debt2 --am.t (! proce$s ( 4posi;n2 --adju/$ co/ base (! %>es or debt2 --\tlays & exp5ses on ! 4posi;n2 & --am.t (! loss4 ,calcul,n (! busi;s 9ve/;t loss reduc;n ,! reduc;n calculat$ 2l is 3sid]$ 6be a capital loss =! ye>4 ,total ( all capital ga9s deduc;ns claim$ f #aihe 6#bjje 7#a7 ,= #aihe 6#aihg1 total (! am.ts f l9e #bed ( yr returns = ^! ye>s 4#---- "ts #b """"""""" 4#---- 7#b7 ,= #aihh & #aihi 7o!r ?an = eligi# capital prop]ty ga9s71 total (! am.ts f l9e #bed ( yr #bjf ,*apt] #e b#cg returns .m9us any am.ts report$ on l9es #edc & #edd on ,s*$ule #c2 if negative 5t] 8#j0 7a7 4#---- "ts ?ree-halves """""""" 4#---- 7#c7 ,= #aihh & #aihi = eligi# capital prop]ty ga9s1 total (! am.ts f l9e #bed ( yr returns .m9us ! am.t calculat$ at l9e 7a7 abv2 n 6exce$ l9es #edc & #edd on ,s*$ule #c 4#---- "ts f\r-?irds """"""""""""""""""""" 4#---- 7#d7 ,= #aiij 6#aiii1 total (! am.ts f l9e #bed ( yr returns = ^! ye>s 4#---- "ts f\r-?irds "" 4#---- 7#e7 ,= #bjjj1 am.t f l9e #bed ( yr return 4#---- "ts #a divid$ 0,,ir 99 """""""""""""""""""""" 4#---- 99 ,? rate is f l9e #af 9 ,"p #d ( ,s*$ule #c = #bjjj1 or f yr ,notice ( ,assess;t or late/ ,notice ( ,reassess;t = #bjjj4 #bjg ,*apt] #e c#cg 7#f7 ,= #bjja 6#bjje1 total (! am.ts f l9e #bed ( yr returns = ^! ye>s 4#---- "ts #b """"""""" 4#---- 7#g7 ,total ( l9es #a 6#f """"""" 4#---- ,total ( all o!r busi;s 9ve/;t loss reduc;ns = #aihf 6#bjje 7#h7 ,total ( am.ts report$ on l9e #ece ( ,s*$ule #c ( yr #aihf 6#aiid returns """"""""" 4#---- 7#i7 ,total ( am.ts report$ on l9e #jcd ( ,s*$ule #c ( yr #aiid 6#aiif returns """"""""" 4#---- 7#aj7 ,total ( am.ts report$ on l9e #agh ( ,s*$ule #c ( yr #aiig 6#aiii returns """"""""" 4#---- 7#aa7 ,total ( am.ts report$ on l9es #bic1 #agh1 & #effh ( ,s*$ule #c ( yr #bjjj return """ 4#---- #bjh ,*apt] #e d#cg 7#ab7 ,total ( am.ts report$ on l9e #agh ( ,s*$ule #c ( yr #bjja 6#bjje returns """"""""" 4#---- 7#ac7 ,total ( l9es #h 6#ab """"""""""""""""""" 4#---- 7#ad7 ,l9e #g .m9us l9e #ac """"""""""""""""""""""""""" 4#---- ,busi;s 9ve/;t loss reduc;n 7#ae7 ,l9e #ad or l9e ;,a f ,/ep #a abv1 .:i*"e .is .less4 ,5t] ? am.t on l9e ;,b 9 ,/ep #b abv & on l9e #agh ( ,s*$ule #c """" 4#---- -------------------------------------#ch ,summ>y ( loss applic,n rules ,transcrib]'s note3 7,! foll[+ is set up 9 ?ree columns3 ,column #a3 ,type ( loss ,column #b3 ,applic,n rules ,column #c3 ,limit 6annual deduc;n7 #bji ,*apt] #e a#ch ,type ( loss ,all[a# busi;s 9ve/;t loss 7see page #cf7 ,applic,n rules ,any unappli$ por;n ( an ,,abil 9curr$ 9 #bjjd or future ye>s 2comes a non- capital loss t c 2 c>ri$ back ?ree ye>s & =w>d #aj ye>s4 ,limit 6annual deduc;n ,no limit ,applic,n rules ,! unappli$ por;n (! non-capital loss w 2come a net capital loss t c 2 us$ 6reduce taxa# capital ga9s 9 ! elev5? ye> or any ye> af4 99 ,limit 6annual deduc;n ,limit$ 6taxa# capital ga9s 9 ! ye>4 99 ,any unappli$ por;n ( an ,,abil 9curr$ 9 #bjjc or prior ye>s 2came a non-capital loss t cd 2 c>ri$ back ?ree ye>s & =w>d sev5 ye>s4 ,! unappli$ por;n (! non-capital loss w 2come a net capital loss t c 2 #baj ,*apt] #e b#ch us$ 6reduce taxa# capital ga9s 9 ! ei or any ye> af4 ,type ( loss ,net capital loss 7see page #bh7 ,applic,n rules --,c>ry back ?ree ye>s --,c>ry =w>d 9def9itely ,limit 6annual deduc;n ,limit$ 6taxa# capital ga9s 9 ! ye>4 9999 9999 ,= net capital losses 9curr$ 2f ,may #bc1 #aihe1 y may deduct an a4i;nal am.t 7up 64#b1jjj7 f o!r 9come4 ,= m 9=m,n1 see 8,h[ d y apply yr net capital losses ( o!r ye>s 6#bjjf80 on page #bi4 #baa ,*apt] #e c#ch ,type ( loss ,f>m loss 999999 ,applic,n rules --,c>ry back ?ree ye>s --,=a loss 9curr$ af #bjje1 c>ry =w>d #bj ye>s4 ,=a loss 9curr$ 2f #bjjf1 c>ry =w>d #aj ye>s ,limit 6annual deduc;n ,no limit 999999 ,see guide ,t#djjc1 ,f>m+ ,9come1 guide ,,rc#djfj1 ,f>m+ ,9come &! ,,cais ,program1 or ,,rc#ddjh1 ,f>m+ ,9come &! ,,cais ,program ,h>moniz$ ,guide1 = m 9=m,n on f>m+ losses4 ,type ( loss ,li/$ p]sonal prop]ty 7,,lpp7 loss 7see page #cd7 ,applic,n rules --,c>ry back ?ree ye>s --,c>ry =w>d sev5 ye>s #bab ,*apt] #e d#ch ,limit 6annual deduc;n ,limit$ 6net ga9s f ,,lpp 9 ! ye>4 ,type ( loss ,p]sonal-use prop]ty loss 7see page #ah7 ,applic,n rules ,no loss all[$4 99999999 ,limit 6annual deduc;n ,n applica# 99999999 ,= excep;ns 6? rule1 see 8,p]sonal-use prop]ty0 on page #ah4 ,type ( loss ,re/rict$ f>m loss 7see page #ce7 ,applic,n rules --,c>ry back ?ree ye>s --,=a loss 9curr$ af #bjje1 c>ry =w>d #bj ye>s4 ,=a loss 9curr$ 2f #bjjf1 c>ry =w>d #aj ye>s ,limit 6annual deduc;n ,limit$ 6net f>m+ 9come 9 ! ye>4 #bac ,*apt] #e e#ch ,applic,n rules ,y c use "p ( any unappli$ loss 6reduce yr capital ga9s f ! sale (! f>ml& t 0 us$ 9 a f>m+ busi;s4 ,limit 6annual deduc;n ,_c 2 m ?an ! prop]ty taxes &! 9t]e/ on m"oy y borr[$ 6buy ! f>ml& t y 9clud$ 9 ! calcul,n (! re/rict$ f>m losses = ea* ye>4 ,y _c use x 6cr1te or 9cr1se a capital loss4 ,type ( loss ,sup]ficial loss 7see page #ce7 --,no loss all[$ ,y c usu,y add ! am.t (! loss 6! adju/$ co/ base (! sub/itut$ prop]ty4 ,limit 6annual deduc;n ,n applica# #bad ,*apt] #f--,pr9cipal f#ch resid;e ,:5 y sell yr home1 y may r1lize a capital ga94 ,if ! prop]ty 0 yr pr9cipal resid;e = e ye> y [n$ x1 y d n h 6report ! sale on yr return4 ,h["e1 if at any "t dur+ ! p]iod y [n$ ! prop]ty x 0 n yr pr9cipal resid;e1 y may h 6report all or "p (! capital ga94 ,? *apt] expla9s ! m1n+ (a pr9cipal resid;e1 h[ y designate a prop]ty z s*1 & :at happ5s :5 y sell x4 ,x al expla9s :at 6d 9 o!r special tax situ,ns4 ,if af r1d+ ? *apt] y ne$ m 9=m,n1 see ,9t]pret,n ,bullet9 ,,it-#abj1 ,pr9cipal ,resid;e4 ,:at is yr pr9cipal resid;e8 ,yr pr9cipal resid;e c 2 any (! foll[+ types ( h\s+ units3 --a h\se2 --a cottage2 --a 3dom9ium2 #bae ,*apt] #f g#ch --an a"p;t 9 an a"p;t build+2 --an a"p;t 9 a duplex2 or --a trail]1 mobile home1 or h\seboat4 ,a prop]ty qualifies z yr pr9cipal resid;e = any ye> if x meets ! foll[+ f\r 3di;ns3 --x is a h\s+ unit1 a l1sehold 9t]e/ 9 a h\s+ unit1 or a %>e (! capital /ock (a co-op]ative h\s+ -------------------------------------#ci corpor,n y acquire only 6get ! "r 69habit a h\s+ unit [n$ 0t corpor,n2 --y [n ! prop]ty al"o or jo9tly ) ano!r p]son2 --y1 yr curr5t or =m] sp\se or -mon- law "pn]1 or any ( yr *n liv$ 9 x at "s "t dur+ ! ye>2 & --y designate ! prop]ty z yr pr9cipal resid;e4 ,! l& on : yr home is locat$ c 2 "p ( yr pr9cipal resid;e4 ,usu,y1 ! am.t ( l& t y c 3sid] z "p ( yr pr9cipal #baf ,*apt] #f a#ci resid;e is limit$ 6"o-half hect>e 7#a.bd acres74 ,h["e1 if y c %[ t y ne$ m l& 6use & 5joy yr home1 y c 3sid] m ?an ? am.t z "p ( yr pr9cipal resid;e4 ,= example1 ? may happ5 if ! m9imum lot size impos$ 0a municipal;y at ! "t y b"\ ! prop]ty is l>g] ?an "o-half hect>e4 ,designat+ a pr9cipal resid;e ,y designate yr home z yr pr9cipal resid;e :5 y sell or >e 3sid]$ 6h sold all or "p ( x4 ,y c designate yr home z yr pr9cipal resid;e =! ye>s t y [n & use x z yr pr9cipal resid;e4 ,h["e1 y d n h 6designate x ea* ye>4 ,= m 9=m,n1 see 8,=m ,t#bjia7,,ind71 ,design,n (a ,prop]ty z a ,pr9cipal ,resid;e 0an ,9dividual 7,o!r ,?an a ,p]sonal ,tru/70 on ? page4 #bag ,c y h m ?an "o pr9cipal b#ci resid;e8 ..,= #aihb & lat] .ye>s1 y c only designate "o home z yr family's pr9cipal resid;e = ea* ye>4 ..,= #aihb 6.#bjjj1 yr family 9clud$3 --y2 --a p]son :o1 "?\t ! ye>1 0 yr sp\se 7un.s y 7 sep>at$ =! 5tire ye> "u ! t]ms (a c\rt ord] or a writt5 agree;t72 & --yr *n 7o!r ?an a * :o _h a sp\se dur+ ! ye> or :o 0 #ah or old]74 ,if y ..did n h a sp\se & 7 n #ah or .old]1 yr family .al 9clud$3 --yr "m & yr "f2 & --yr bro!rs & si/]s 7:o did n h sp\ses & 7 n #ah or old] dur+ ! ye>74 ..,= #bjja 6.#bjjf1 ! abv def9i;n applies except t ! ref];e 6sp\se is replac$ by 8sp\se or -mon-law "pn]40 ,^! t]ms >e def9$ 9 ! ,gloss>y on page #e4 #bah ,*apt] #f c#ci ..,= #aiic 6.#bjjj1 a sp\se 9clud$ a -mon-law sp\se4 ,"!=e1 -mon-law sp\ses cd n designate di6]5t h\s+ units z _! pr9cipal resid;e = any ( ^? ye>s4 ,note ,if y made an elec;n 6h yr same-sex "pn] 3sid]$ yr -mon-law "pn] = #aiih1 #aiii1 &/or #bjjj1 !n1 = ^? ye>s1 yr -mon-law "pn] al cd n designate a di6]5t h\s+ unit z 8 or h] pr9cipal resid;e4 ..,= ye>s 2f .#aihb1 m ?an "o h\s+ unit p] family c 2 designat$ z a pr9cipal resid;e4 ,"!=e1 a husb& & wife c designate di6]5t pr9cipal resid;es = ^! ye>s4 ,h["e1 a special rule applies if memb]s (a family designate m ?an "o home z a pr9cipal resid;e4 ,= m 9=m,n1 see ,9t]pret,n ,bullet9 ,,it-#abj1 ,pr9cipal ,resid;e4 #bai ,4pos+ ( yr pr9cipal d#ci resid;e ,:5 y sell yr home or :5 y >e 3sid]$ 6h sold x1 usu,y y d n h 6report ! sale on yr return & y d n h 6pay tax on any ga9 f ! sale4 ,? is ! case if ! home 0 yr pr9cipal resid;e = e ye> y [n$ x4 ,if yr home 0 .n yr pr9cipal resid;e = e ye> t y [n$ x1 y h 6report ! "p (! capital ga9 on ! prop]ty t relates 6! ye>s = : y did n designate ! prop]ty z yr pr9cipal resid;e4 ,6d ?1 -plete ,=m ,t#bjia7,,ind7 7see ! next sec;n74 ,note ,2c yr home is 3sid]$ p]sonal-use prop]ty1 if y h a loss at ! "t y sell or >e 3sid]$ 6h sold yr home1 y >e n all[$ 6claim ! loss4 ,if only a "p ( yr home qualifies z yr pr9cipal resid;e & y us$ ! o!r "p 6e>n or produce 9come1 y h 6split ! sell+ price &! adju/$ co/ base 2t ! "p #bbj ,*apt] #f e#ci y us$ = yr pr9cipal resid;e &! "p y us$ = o!r purposes 7= example1 r5tal or busi;s74 ,y c d ? 0us+ squ>e metres or ! numb] ( rooms1 z l;g z ! split is r1sona#4 ,report only ! ga9 on ! "p y us$ 6produce 9come4 ,= m 9=m,n1 see 8,r1l e/ate1 deprecia# prop]ty1 & o!r prop]ties0 on page #ae & ,9t]pret,n ,bullet9 ,,it-#abj1 ,pr9cipal ,resid;e4 ,=m ,t#bjia7,,ind71 ,design,n (a ,prop]ty z a ,pr9cipal ,resid;e 0an ,9dividual 7,o!r ,?an a ,p]sonal ,tru/7 ,use ,=m ,t#bjia7,,ind7 6designate a prop]ty z a pr9cipal resid;e4 ,? =m w help y calculate ! numb] ( ye>s t y c designate yr home z yr pr9cipal resid;e1 z well z ! "p (! capital ga91 if any1 t y h 6report4 ,-plete ,=m ,t#bjia7,,ind71 if y3 #bba ,*apt] #f f#ci --sold1 or 7 3sid]$ 6h sold1 yr pr9cipal resid;e1 or any "p ( x2 or --grant$ "s"o an op;n 6buy yr pr9cipal resid;e1 or any "p ( x4 ,y only h 69clude ,=m ,t#bjia7,,ind7 ) yr return if y h 6report a capital ga94 ,a legal repres5tative 7executor1 adm9i/rator1 or a liquidator 9 ,quebec7 (a dec1s$ p]son %d use ,=m ,t#abee1 ,design,n (a ,prop]ty z a ,pr9cipal ,resid;e 0! ,legal ,repres5tative (a ,dec1s$ ,9dividual1 to -------------------------------------#dj designate a prop]ty z a pr9ciple resid;e =! dec1s$4 ,did y or yr sp\se or -mon-law "pn] file ,=m ,t#ffd or ,t#ffd7,s5iors78 ,use ,=m ,t#bjia7,,ind7 6calculate ! capital ga9 if y sell1 or >e 3sid]$ 6h sold1 a prop]ty = : y or yr sp\se #bbb ,*apt] #f a#dj or -mon-law "pn] fil$ ,=m ,t#ffd or ,t#ffd7,s5iors71 ,elec;n 6,report a ,capital ,ga9 on ,prop]ty ,[n$ at ! ,5d ( ,febru>y #bb1 #aiid1 &3 --! prop]ty 0 yr pr9cipal resid;e = #aiid2 or --y >e designat+ x 9 #bjjf z yr pr9cipal resid;e = any tax ye>4 --,use ,=m ,t#bjia7,,ind7-,,ws1 ,pr9cipal ,resid;e ,"w%eet1 6calculate a reduc;n due 6! capital ga9s elec;n4 ,9 ? case1 if ! prop]ty 0 designat$ z a pr9cipal resid;e =! purpose (! capital ga9s elec;n1 y h 69clude ^? previ\sly designat$ tax ye>s z "p ( yr pr9cipal resid;e design,n 9 #bjjf4 ,note ,if1 at ! "t (! elec;n1 ! prop]ty 0 designat$ z a pr9cipal resid;e = any tax ye> o!r ?an #aiid1 y c *oose :e!r or n 6designate x ag z yr pr9cipal resid;e :5 y sell x or >e #bbc ,*apt] #f b#dj 3sid]$ 6h sold x4 ,rememb]1 if y *oose 6designate x ag1 y h 69clude ^? previ\sly designat$ tax ye>s z "p ( yr pr9cipal resid;e design,n 9 #bjjf4 ,if ! prop]ty 0 n yr pr9cipal resid;e = #aiid & y >e n designat+ x 9 #bjjf z yr pr9cipal resid;e = any tax ye>1 d n use ,=m ,t#bjia7,,ind7 & ,=m ,t#bjia7,,ind7-,,ws 6calculate yr capital ga94 ,9/1d1 calculate yr capital ga91 if any1 9 ! regul> way 7proce$s ( 4posi;n .m9us ! adju/$ co/ base & \tlays & exp5ses74 ,= m 9=m,n on h[ 6calculate yr adju/$ co/ base z a result (! capital ga9s elec;n1 see 8,prop]ty = : y fil$ ,=m ,t#ffd or ,t#ffd7,s5iors70 on page #ba4 ,*anges 9 use ,y c 2 3sid]$ 6h sold all or "p ( yr prop]ty ev5 ?\< y did n actu,y sell x4 ,! foll[+ >e "s sample situ,ns3 #bbd ,*apt] #f c#dj --y *ange all or "p ( yr pr9cipal resid;e 6a r5tal or busi;s op],n2 or --y *ange yr r5tal or busi;s op],n 6a pr9cipal resid;e4 ,e "t y *ange ! use (a prop]ty1 y >e 3sid]$ 6h sold ! prop]ty at xs fair m>ket value & 6h immly reacquir$ ! prop]ty =! same am.t4 ,y h 6report ! result+ capital ga9 or loss 7in c]ta9 situ,ns7 9 ! ye> ! *ange ( use o3urs4 ,if ! prop]ty 0 yr pr9cipal resid;e = any ye> y [n$ x 2f y *ang$ xs use1 y d n h 6pay tax on any ga9 t relates 6^? ye>s4 ,y only h 6report ! ga9 t relates 6! ye>s yr home 0 n yr pr9cipal resid;e4 ,= 9=m,n on h[ 6calculate & report ! ga91 if any1 see 8,4pos+ ( yr pr9cipal resid;e0 on page #ci4 ,if y 7 us+ ! prop]ty 6e>n or produce 9come 2f y *ang$ xs use1 see 8,r1l e/ate1 deprecia# prop]ty1 & o!r prop]ties0 on page #ae = 9=m,n on h[ 6report any capital ga9 or loss4 #bbe ,special situ,ns d#dj ,9 c]ta9 situ,ns1 ! rules /at$ abv = *anges 9 use d n apply4 ,! foll[+ >e "s (! m -mon situ,ns4 ,*ang+ all yr pr9cipal resid;e 6a r5tal or busi;s prop]ty ,:5 y *ange yr pr9cipal resid;e 6a r5tal or busi;s prop]ty1 y c make an elec;n n 6be 3sid]$ z hav+ />t$ 6use yr pr9cipal resid;e z a r5tal or busi;s prop]ty4 ,? m1ns y d n h 6report any capital ga9 :5 y *ange xs use4 ,if y make ? elec;n3 --y h 6report ! net r5tal or busi;s 9come y e>n2 & --y _c claim capital co/ all[.e 7,,cca7 on ! prop]ty4 ,:ile yr elec;n is 9 e6ect1 y c designate ! prop]ty z yr pr9cipal resid;e = up 6f\r ye>s1 ev5 if y d n use yr prop]ty z yr pr9cipal resid;e4 ,h["e1 y c only d ? if y d n designate #bbf ,*apt] #f e#dj any o!r prop]ty z yr pr9cipal resid;e = ? "t4 ,y c ext5d ! f\r-ye> limit 9def9itely if all (! foll[+ 3di;ns >e met3 --y live away f yr pr9cipal resid;e 2c yr employ]1 or yr sp\se's or -mon-law "pn]'s employ] wants y 6relocate2 --y & yr sp\se or -mon-law "pn] >e n relat$ 6! employ]2 --y return 6yr orig9al home :ile y or yr sp\se or -mon-law "pn] >e / )! same employ]1 .or 2f ! 5d (! ye> foll[+ ! ye> 9 : ? employ;t 5ds1 .or y die dur+ ! t]m ( employ;t2 & --yr orig9al home is at l1/ #dj kilometres 70! %orte/ public r\te7 f>!r ?an yr tempor>y resid;e f yr1 or yr sp\se's or -mon-law "pn]'s1 new place ( employ;t4 ,if y make ? elec;n1 "! is no imm e6ect on yr 9come tax situ,n :5 y move back 96yr resid;e4 ,h["e1 if y #bbg ,*apt] #f f#dj *ange ! use (! prop]ty ag & d n make ? elec;n ag1 any ga9 y h f sell+ ! prop]ty may 2 subject 6tax4 ,6make ? elec;n1 atta* 6yr return a lr sign$ 0y4 ,describe ! prop]ty & /ate t y want .subsec;n .#de7#b7 (! ,9come ,tax ,act 6apply4 ,if y />t$ 6use yr pr9cipal resid;e z a r5tal or busi;s prop]ty 9 ! ye>1 y may want 9=m,n on h[ y %d report yr busi;s or prop]ty -------------------------------------#da 9come4 ,if s1 see guide ,t#djjb1 ,busi;s & ,profes.nal ,9come or guide ,t#djcf1 ,r5tal ,9come4 ,*ang+ yr r5tal or busi;s prop]ty 6a pr9cipal resid;e ,:5 y *ange yr r5tal or busi;s prop]ty 6a pr9cipal resid;e1 y c elect 6po/p"o report+ ! 4posi;n ( yr prop]ty until y actu,y sell x4 ,h["e1 y _c make ? elec;n if y1 yr sp\se or -mon-law "pn]1 #bbh ,*apt] #f a#da or a tru/ "u : y or yr sp\se or -mon-law "pn] is a b5efici>y has deduct$ ,,cca on ! prop]ty = any tax ye> af #aihd1 & on or 2f ! "d y *ange xs use4 ,? elec;n only applies 6a capital ga94 ,if y claim$ ,,cca on ! prop]ty 2f #aihe1 y h 69clude any recapture ( ,,cca 9 yr busi;s or r5tal 9come4 ,9clude ! 9come 9 ! ye> y *ang$ ! use (! prop]ty4 ,if y ne$ m 9=m,n on ! recapture ( ,,cca1 see guide ,t#djjb1 ,busi;s & ,profes.nal ,9come or guide ,t#djcf1 ,r5tal ,9come4 ,if y make ? elec;n1 y c designate ! prop]ty z yr pr9cipal resid;e = up 6f\r ye>s 2f y actu,y o3upy x z yr pr9cipal resid;e4 ,6make ? elec;n1 atta* 6yr return a lr sign$ 0y4 ,describe ! prop]ty & /ate t y want .subsec;n .#de7#c7 (! ,9come ,tax ,act 6apply4 ,y h 6make ? elec;n 0:i*"e (! foll[+ dates is e>li]3 --#ij "ds af ! date we ask y 6make ! elec;n2 or #bbi ,*apt] #f b#da --! date y >e requir$ 6file yr return =! ye> 9 : y actu,y sell ! prop]ty4 ,*ang+ "p ( yr pr9cipal resid;e 6a r5tal or busi;s prop]ty ,y >e usu,y 3sid]$ 6h *ang$ ! use ( "p ( yr pr9cipal resid;e :5 y />t 6use t "p = r5tal or busi;s purposes4 ,h["e1 y >e n 3sid]$ 6h *ang$ xs use if3 --yr r5tal or busi;s use (! prop]ty is relatively small 9 rel,n 6xs use z yr pr9cipal resid;e2 --y d n make any /ructural *anges 6! prop]ty 6make x m suita# = r5tal or busi;s purposes2 & --y d n deduct any ,,cca on ! "p y >e us+ = r5tal or busi;s purposes4 ,if y meet all (! abv 3di;ns1 ! :ole prop]ty may qualify z yr pr9cipal resid;e1 ev5 ?\< y >e us+ "p ( x = r5tal or busi;s purposes4 #bcj ,*apt] #f c#da ,h["e1 if y d n meet all (! abv 3di;ns1 :5 y actu,y sell ! prop]ty y h to3 --split ! sell+ price 2t ! "p y us$ = yr pr9cipal resid;e &! "p y us$ = r5tal or busi;s purposes4 ,we w a3ept a split bas$ on squ>e metres or ! numb] ( rooms z l;g z ! split is r1sona#2 & --report any capital ga9 on ! "p y us$ = r5tal or busi;s purposes4 ,= m 9=m,n1 see 8,r1l e/ate1 deprecia# prop]ty1 & o!r prop]ties0 on page #ae4 ,y d n h 6report any capital ga9 =! "p y us$ = yr pr9cipal resid;e4 ,note ,y _c file an elec;n "u .subsec;n .#de7#b7 (! ,9come ,tax ,act1 z 4cuss$ 9 ! previ\s sec;n1 if "! is only a "pial *ange 9 use (a prop]ty4 #bca ,f>m & fi%+ prop]ty d#da ,if y >e a f>m] or fi%] & y sell l& 9 #bjjf us$ pr9cip,y 9 a f>m+ or fi%+ busi;s t 9cludes yr pr9cipal resid;e1 y c *oose "o ( two me?ods 6calculate yr capital ga94 ,we expla9 ^! two me?ods 9 guide ,t#djjd1 ,fi%+ ,9come1 guide ,t#djjc1 ,f>m+ ,9come1 guide ,,rc#djfj1 ,f>m+ ,9come &! ,,cais ,program1 & ,,rc#ddjh1 ,f>m+ ,9come &! ,,cais ,program ,h>moniz$ ,guide4 -------------------------------------#db ,example--,4pos+ (a pr9cipal resid;e "ply us$ = e>n+ 9come ,9 ? example1 we illu/rate "s (! topics t we 4cuss 9 ? guide4 ,we %[ y h[ to3 --tr1t ! sale ( prop]ty t 0 us$ "ply z a pr9cipal resid;e & "ply = e>n+ 9come2 #bcb ,*apt] #f a#db --report a capital ga9 on ! 4posi;n ( prop]ty t 9cludes l& &a build+ 7see 8,r1l e/ate0 on page #ae72 & --calculate a recapture ( capital co/ all[.e 7,,cca7 or a t]m9al loss on ! 4posi;n ( deprecia# prop]ty 7see 8,recapture ( ,,cca & t]m9al losses0 on page #af74 ,9 ,novemb] #aihh1 ,john b"\ a duplex = 4#abe1jjj4 ,ac 6a municipal assess;t -plet$ j 2f ! pur*ase1 ! 5tire prop]ty 0 valu$ at 4#ajj1jjj4 ,! l& 0 valu$ at 4#be1jjj &! build+ 0 valu$ at 4#ge1jjj4 ,f ! date he pur*as$ ! duplex1 ,john liv$ 9 ! l[] half & r5t$ \ ! upp] half4 ,bas$ on ! prop]ty's total numb] ( squ>e metres1 he det]m9$ t ! por;n he us$ 6e>n r5tal 9come 0 #dj@3p4 ,on ,july #bh1 #bjjf1 ,john sold ! prop]ty = 4#age1jjj4 ,he 9curr$ exp5ses ( 4#aj1ejj 6make ! sale4 ,ac 6a rec5t municipal assess;t1 ! 5tire prop]ty 0 n[ #bcc ,*apt] #f b#db valu$ at 4#aej1jjj4 ,! l& 0 wor? 4#cj1jjj &! build+ 0 wor? 4#abj1jjj4 ,any ga9 on ! "p (! prop]ty t ,john us$ z 8 pr9cipal resid;e w n 2 tax$ 2c he us$ t "p (! prop]ty z 8 pr9cipal resid;e = all ! ye>s he [n$ x4 ,2c ,john does n h 6report ! ga91 he does n h 6-plete ,=m ,t#bjia7,,ind71 ,design,n (a ,prop]ty z a ,pr9cipal ,resid;e 0an ,9dividual 7,o!r ,?an a ,p]sonal ,tru/74 ,john has 6calculate ! capital ga9 on ! "p (! prop]ty t he r5t$ \4 ,he al has 6det]m9e if he has a recapture ( ,,cca or a t]m9al loss on ! r5t$ por;n (! build+4 ,= ? r1son1 he w br1k d[n ! r5tal por;n (! pur*ase price1 ! sell+ price1 &! relat$ exp5ses 2t ! l& &! build+4 ,keep+ 9 m9d t #dj@3p (! prop]ty 0 us$ = r5tal purposes1 ,john -pletes ! foll[+ calcul,ns3 #bcd ,*apt] #f c#db #a4 ,he divides ! r5tal por;n (! pur*ase price 2t ! l& &! build+1 bas$ on ! municipal assess;t at ! "t (! pur*ase3 a7 ,build+3 #dj@3p multipli$ 04#ge1jjj divid$ 04#ajj1jjj multipli$ 04#abe1jjj equals 4#cg1ejj b7 ,l&3 #dj@3p multipli$ 04#be1jjj divid$ 04#ajj1jjj multipli$ 04#abe1jjj equals 4#ab1ejj ,2c ! br1kd[n 2t ! l& &! build+ 0 n %[n on 8 pur*ase agree;t1 ,john uses ! municipal assess;t 9 e6ect at ! "t (! pur*ase4 ,john wd h -plet$ ? calcul,n at ! "t he pur*as$ ! prop]ty 6det]m9e ! am.t ( ,,cca he cd claim on ! "p (! build+ he r5t$ \4 #b4 ,he divides ! r5tal por;n (! sell+ price 2t ! l& &! build+1 bas$ on ! municipal assess;t at ! "t (! sale3 a7 ,build+3 #dj@3p multipli$ 04#abj1jjj divid$ 04#aej1jjj multipli$ 04#age1jjj equals 4#ef1jjj #bce ,*apt] #f d#db b7 ,l&3 #dj@3p multipli$ 04#cj1jjj divid$ 04#aej1jjj multipli$ 04#age1jjj equals 4#ad1jjj ,! br1kd[n 2t ! l& &! build+ 0 n %[n on ,john's sale agree;t4 ,2c no r5ov,ns 7 made 6! build+ s9ce ! la/ municipal assess;t1 ,john c use ! municipal assess;t t 0 9 e6ect at ! "t (! sale4 #c4 ,he divides ! r5tal por;n (! exp5ses relat+ 6! sale 2t ! l& &! build+1 bas$ on ! municipal assess;t at ! "t (! sale3 a7 ,build+3 #dj@3p multipli$ 04#abj1jjj divid$ 04#aej1jjj multipli$ 04#aj1ejj equals 4#c1cfj b7 ,l&3 #dj@3p multipli$ 04#cj1jjj divid$ 04#aej1jjj multipli$ 04#aj1ejj equals 4#hdj -------------------------------------#dc ,john c n[ det]m9e if he has a recapture ( ,,cca or a t]m9al loss on ! r5t$ "p (! build+4 ,! undepreciat$ capital co/ 7,,ucc7 (! por;n (! #bcf ,*apt] #f a#dc build+ us$ = r5tal purposes at ! 2g9n+ ( #bjjf 0 4#cd1gbh4 ,f ! ,,ucc1 he subtracts "o (! foll[+ am.ts1 :i*"e is less3 --! sell+ price (! r5t$ "p (! build+ m9us ! relat$ \tlays & exp5ses3 4#eb1fdj 74#ef1jjj m9us 4#c1cfj72 or --! pur*ase price (! r5t$ "p (! build+3 4#cg1ejj4 ,,ucc at ! 2g9n+ ( #bjjf """" 4#cd1gbh .,m9us3 ,pur*ase price """""" 4#cg1ejj ,recapture ( ,,cca """"""""" 74#b1ggb7 ,6help hm -plete ! abv calcul,ns1 ,john uses ! ,,cca s*$ule on ! back ( ,=m ,t#ggf1 ,/ate;t ( ,r1l ,e/ate ,r5tals4 ,john c n[ calculate 8 capital ga94 ,6d ?1 he -pletes ! sec;n call$ 8,r1l e/ate1 deprecia# prop]ty1 & o!r prop]ties0 9 ,s*$ule #c1 ,capital ,ga9s #bcg ,*apt] #f b#dc 7or ,losses7 9 #bjjf4 ,he reports ! sale (! r5tal prop]ty z foll[s3 ,transcrib]'s note3 7,? text has be5 extrapolat$ f ! pr9t s*$ule : is 9 a column> =mat4 ,! pr9t 3ta9s f #a 6#c 8descriptive0 columns & #e 8numb]$0 columns4 ,"! is space = #b-c 5tries47 ,r1l e/ate1 deprecia# prop]ty1 & o!r prop]ties ,a4ress or legal descrip;n ,/reet1 ,c;y1 ,prov9ce 7build+7 ---- 7#a7 #aihh 7#b7 4#ef1jjj.jj 7#c7 4#cg1ejj.jj 7#d7 4#c1cfj.jj 7#e7 ,ga9 7or loss7 7column #b m9us columns #c & #d7 4#ae1adj.jj #bch ,*apt] #f c#dc ,/reet1 ,c;y1 ,prov9ce 7l&7 ---- 7#a7 #aihh 7#b7 4#ad1jjj.jj 7#c7 4#ab1ejj.jj 7#d7 4#hdj.jj 7#e7 ,ga9 7or loss7 7column #b m9us columns #c & #d7 4#ffj.jj 7#acf7 ,total 7,total ( all 5tries 9 column #b7 """""" 4#gj1jjj.jj 7#ach7 ,ga9 7or loss7 7,total ( all 5tries 9 column #e7 4#ae1hjj.jj #bci #bdj ,9dex #dd ,9 a4i;n 6li/+ topics1 ? 9dex provides ref];es 6any ,9t]pret,n ,bullet9 7,,it7 & ,9=m,n ,circul> 7,,ic7 relat$ 6ea* topic m5;n$4 ,if af r1d+ ! explan,ns provid$ 9 ? guide1 y / ne$ m 9=m,n1 get a copy ( ^! public,ns4 ,we provide a -plete li/ ( ref];es on page #de4 ,page ,adju/$ co/ base 7,,acb7 7,,it-#abh1 ,,it-#bac1 ,,it-#def7 """""""""""""" #e1 #bj1 #bd ,all[a# busi;s 9ve/;t loss 7,,abil7 7,,it-#bcb1 ,,it-#dhd7 "" #cf ,all[a# capital loss 7,,it-#bcb7 """" #e ,am.t ( advantage """"""""""""""""""" #f ,>m's l5g? transac;n 7,,it-#dai7 """" #e ,bad debts 7,,it-#aei7 """"""""""""" #ag ,bonds """"""""""""""""""""""""""""" #ag #bda ,9dex a#dd ,canadian-3troll$ private corpor,n 7,,it-#deh7 """"""""""""""""""""""" #e ,canadian securities 7,,it-#dgi7 #e1 #i ,capital co/ all[.e 7,,cca7 """" #e1 #af ,capital ga9 """""""""" #e1 #i1 #aj1 #af ,capital ga9s deduc;n """" #ab1 #ac1 #be ,capital ga9s def]ral """""""""""""" #bd ,capital ga9s reduc;n """""""""""""" #be ,capital losses "" #e1 #i1 #aj1 #ab1 #bh ,capital prop]ty 7,,it-#abe7 """""""" #e ,[n$ 2f #aigb 7,,it-#aci7 """""""" #aa ,capital transac;n 7,,it-#bah1 ,,it-#dei1 ,,it-#dgi7 """"""""""""" #i ,-mon-law "pn] """""""""""""""""""""" #f ,cultural prop]ty 7,,it-#djg7 """""" #bg ,deb5tures """"""""""""""""""""""""" #ag ,debt oblig,ns3 4c.ts1 premiums1 & bonuses """""""""""""""""""""""""" #ag ,deem$ acquisi;n """""""""""""""""""" #f ,deem$ co/ """""""""""""""""""""""""" #f ,deem$ 4posi;n """""""""""""""""""""" #f ,deem$ proce$s ( 4posi;n """""""""""" #f #bdb ,9dex b#dd ,deprecia# prop]ty 7,,it-#dgh7 #f1 #af ,4posi;n 74pose (7 """""""""""""""""" #f ,ecologic,y s5sitive l& """""""""""" #bg ,eligi# am.t ( gift """"""""""""""""" #f ,eligi# capital prop]ty 7,,it-#abc7 """""""""""""""""" #f1 #be ,employee secur;y op;ns 7,,it-#aac7 """""""""""""""""""""" #ad ,except$ gift """"""""""""""""""""""" #f ,exempt capital ga9s bal.e 7,,ecgb7 """"""""""""""""""""""""" #bg ,fair m>ket value 7,,fmv7 """"""""""" #g ,fl[-"? 5t;y """"""""""""""""""""""" #bh ,=eign ex*ange 7,,it-#ie7 """""""""" #ah ,gifts 7don,ns7 """"" #aj1 #ag1 #bc1 #bg ,gloss>y """""""""""""""""""""""""""" #e ,id5tical prop]ties """""""""""""""" #bj ,9clu.n rate """"""""""""""""""" #g1 #bh ,9come transac;n """""""""""""""""""" #i #bdc ,9dex c#dd ,9=m,n slips """"""""""""""""""""""" #ai ,9h]it+ prop]ty """""""""""""""""""" #bc ,li/$ p]sonal prop]ty 7,,lpp7 #ai1 #cd ,li/$ p]sonal prop]ty losses 7,,it-#bcb7 """""""""""""""""""""" #cd ,losses--summ>y """""""""""""""""""" #ch ,mortgages """"""""""""""""""""""""" #ah ,mutual funds """""""""""""""""""""" #ac ,net capital losses 7,,it-#bcb7 """"" #g ,h[ d y apply yr #bjjf net capital loss 6previ\s ye>s8 """" #bi ,h[ d y apply yr net capital losses ( o!r ye>s 6#bjjf8 """""" #bi ,pre-#aihf capital loss bal.e 7,,it-#bcb7 """""""""" #bi1 #ca1 #cc ,non->m's l5g? transac;n """""""""""" #g ,non-qualify+ r1l prop]ty """"""""""" #g ,non-qualify+ secur;y """"""""""""""" #g #bdd ,9dex d#dd ,op;ns 7,,it-#if1 ,,it-#dgi7 """"""" #ag ,\tlays & exp5ses """"""""""""""""""" #g ,"pn]%ips """""""""""""""""""""""""" #be ,p]sonal-use prop]ty """""" #g1 #aj1 #ah ,prescrib$ secur;y """""""""""""""""" #g ,pr9cipal resid;e 7,,it-#abj7 #aj1 #ch ,*anges 9 use 7,,it-#abj7 """""""" #dj ,designat+ 7,,it-#abj7 """"""""""" #ci ,4posi;n """"""""""""""""""""""""" #ci ,proce$s ( 4posi;n """""""""""""""""" #g ,promissory notes """""""""""""""""" #ag ,public corpor,n 7,,it-#cia7 """""""" #g ,qualifi$ donee """"""""""""""""""""" #h ,qualifi$ f>m1 qualifi$ fi%+ prop]ty """""""""""""""""""""" #h1 #ac ,qualifi$ small busi;s corpor,n %>es """"""""""""""""""""""""" #h1 #ac ,r1l e/ate 7,,it-#bbj1 ,,it-#bfd7 """"""""""""""""""" #h1 #ae #bde ,9dex e#dd ,r1l prop]ty 7,,it-#bbj1 ,,it-#bfd7 """""""""""""""""""""""" #h ,recapture ( capital co/ all[.e 7,,cca7 """""""""""""""""""""" #h1 #af ,records 7,,ic #gh-aj7 """"""""""""" #ab ,replace;t prop]ty 7,,it-#dia7 """"" #be ,res]ves """"""""""""""""""""""""""" #aa ,re/rict$ f>m losses 7,,it-#bcb7 """ #ce ,sell+ a build+ """""""""""""""""""" #bc ,%>es """""""""""""""""""""""""""""" #ac ,small busi;s corpor,n """""""""""""" #i ,sp\se """""""""""""""""""""""""""""" #i ,/ocks """"""""""""""""""""""""""""" #ac ,/ripp$ bonds """""""""""""""""""""" #ag ,sup]ficial losses """"""""""""""""" #ce ,taxa# b5efits """"""""""""""""""""" #ad ,taxa# capital ga9 """""" #i1 #aj1 #ac1 #be1 #bh1 #bi ,t]m9al loss """"""""""""""""""" #i1 #af ,transf]s ( prop]ty """""""""""""""" #bf ,f>m prop]ty """"""""""""""""""""" #bf #bdf ,9dex f#dd ,o!rs 7,,ic #gf-ai1 ,,it-#dac7 """ #bf ,6yr sp\se or -mon-law "pn] or 6a tru/ = yr sp\se or -mon-law "pn] 7,,it-#bji1 ,,it-#eaa7 """" #bf ,tr1sury bills 7;,t-bills7 """"""""" #ag ,undepreciat$ capital co/ 7,,ucc7 """""""" #i1 #af1 #bc1 #db #bdg #bdh ,ref];es #de ,! foll[+ public,ns >e availa# 0visit+ \r ,web site at _+www.cra.gc.ca/forms_: or 0call+ #a-hjj-iei-bbba4 ,=ms ,t#a;,a ,reque/ = ,loss ,c>ryback ,t#abc ,elec;n on ,4posi;n ( ,canadian ,securities ,t#feg ,calcul,n ( ,capital ,ga9s ,deduc;n = #bjjf ,t#icf ,calcul,n ( ,cumulative ,net ,9ve/;t ,loss 7,,cnil7 6,decemb] #ca1 #bjjf ,t#aaje ,supple;t>y ,s*$ule = ,4posi;ns ( ,capital ,prop]ty ,acquir$ ,2f #aigb ,t#aagj ,capital ,ga9s on ,gifts ( ,c]ta9 ,capital ,prop]ty ,t#abab ,/ate;t ( ,def]r$ ,secur;y ,op;ns ,b5efit #bdi ,ref];es a#de ,t#abee ,design,n (a ,prop]ty z a ,pr9cipal ,resid;e 0! ,legal ,repres5tative (a ,dec1s$ ,9dividual ,t#bjag ,summ>y ( ,res]ves on ,4posi;ns ( ,capital ,prop]ty ,t#bjia7,,ind7 ,design,n (a ,prop]ty z a ,pr9cipal ,resid;e 0an ,9dividual 7,o!r ,?an a ,p]sonal ,tru/7 ,t#bjia7,,ind7-,,ws ,pr9cipal ,resid;e ,"w%eet ,9=m,n ,circul>s ,,ic #gf-ai ,transf] ( ,prop]ty 6a ,corpor,n ,"u ,sec;n #he ,,ic #gh-aj ,books & ,records ,ret5;n/,de/ruc;n ,9=m,n ,docu;t ,,rc#dafi ,tax ,tr1t;t ( ,mutual ,funds = ,9dividuals #bej ,9t]pret,n ,bullet9s b#de ,,it-#ie ,=eign ,ex*ange ,ga9s & ,losses ,,it-#if ,op;ns ,grant$ 0,corpor,ns ,6,acquire ,%>es1 ,bonds1 or ,deb5tures & 0,tru/s ,6,acquire ,tru/ ,units ,,it-#aac ,b5efits 6,employees--,/ock ,op;ns ,,it-#abj ,pr9cipal ,resid;e ,,it-#abc ,transac;ns ,9volv+ ,eligi# ,capital ,prop]ty ,,it-#abe ,4posi;ns ( ,res\rce ,prop]ties ,,it-#abh ,capital ,co/ ,all[.e-- ,deprecia# ,prop]ty ,,it-#aci ,capital ,prop]ty ,[n$ on ,decemb] #ca1 #aiga--,fair ,m>ket ,value ,,it-#aei ,capital ,debts ,e/abli%$ ,6,be ,bad ,debts ,,it-#bji ,9t]-,vivos ,gifts ( ,capital ,prop]ty 6,9dividuals ,directly or ,"? ,tru/s1 & xs ,special ,rel1se #bea ,ref];es c#de ,,it-#bac ,prizes ,f ,lott]y ,s*emes1 ,pool ,sy/em ,bett+ & ,giveaway ,3te/s ,,it-#bah ,pr(it1 ,capital ,ga9s & ,losses ,f ! ,sale ( ,r1l ,e/ate1 ,9clud+ ,f>ml& & ,9h]it$ ,l& & ,3v].n ( ,r1l ,e/ate ,f ,capital ,prop]ty 6,9v5tory & ,vice ,v]sa ,,it-#bbj ,capital ,co/ ,all[.e-- ,proce$s ( ,4posi;n ( ,deprecia# ,prop]ty1 & xs ,special ,rel1se ,,it-#bba ,det]m9,n ( an ,9dividual's ,resid;e ,/atus1 & xs ,special ,rel1se ,,it-#bcb ,losses--,_! ,deductibil;y 9 ! ,loss ,ye> or 9 ,o!r ,ye>s ,,it-#bfd ,"p ,4posi;ns1 & xs ,special ,rel1se ,,it-#cia ,/atus ( ,corpor,ns ,,it-#djg ,4posi;ns ( ,cultural ,prop]ty 6,designat$ ,canadian ,9/itu;ns ,,it-#dac ,elec;n 0,memb]s (a ,"pn]%ip ,"u ,subsec;n #ig7#b7 ,,it-#dai ,m1n+ ( ,>m's ,l5g? #beb ,ref];es d#de ,,it-#def ,capital ,prop]ty--,"s ,adju/;ts 6,co/ ,base1 & xs ,special ,rel1se ,,it-#deh ,canadian-,3troll$ ,private ,corpor,n ,,it-#dei ,adv5ture or ,3c]n 9 ! ,nature ( ,trade ,,it-#dgh ,capital ,co/ ,all[.e-- ,recapture & ,t]m9al ,loss ,,it-#dgi ,transac;ns 9 ,securities1 & xs ,special ,rel1se ,,it-#dhd ,busi;s ,9ve/;t ,losses ,,it-#dia ,=m] ,busi;s ,prop]ty1 & xs ,special ,rel1se ,,it-#eaa ,9t]sp\sal & ,c]ta9 ,o!r ,transf]s & ,loans ( ,prop]ty #bec ,transcrib]'s note3 7,back cov]7 ,yr op9ion c.ts6 ,we review \r public,ns ea* ye>4 ,if y h any -;ts or su7es;ns 6help u improve !m1 we wd l 6he> f y4 ,pl1se s5d yr -;ts to3 ,taxpay] ,s]vices ,directorate ,canada ,rev5ue ,ag5cy #gej ,h]on ,road ,ottawa ,,on ,k#a;,a #j;,l#e #bed ,3v5i5t electronic s]vices = 9dividuals ,jo9 ! millions ( p :o1 ea* ye>1 tru/ ! reliabil;y & spe$ (! electronic s]vices t ! ,canada ,rev5ue ,ag5cy 7,,cra7 (f]s4 ,simply *oose ! fil+ op;n t be/ suits yr ne$s1 & see h[ fa/ y get yr refund--ev5 fa/] ) direct deposit4 ,at any "t dur+ ! ye>1 visit ! ,,cra ,web site at _+www.cra.gc.ca_: 6view or *ange yr p]sonal 9come tax 9=m,n4 ,file yr [n return ''' ,,netfile --,file yr tax return ov] ! ,9t]net us+ ,,netfile,'-c]tifi$ s(tw>e or a ,,netfile c]tifi$ ,web applic,n4 ,y c get a ,,netfile a3ess code onl9e4 ,= m 9=m,n1 visit3 _+www.netfile.gc.ca_:4 #bee ,electronic fil+ s]vices ,,telefile --,file yr tax return 0t\*-t"o teleph"o4 ,= m 9=m,n1 call #a-hjj-iei-hbha1 or visit3 _+www.cra.gc.ca/telefile_:4 ,use a tax return prep>,n s]vice ''' ,,efile --,*oose a tax profes.nal :o w file yr tax return electronic,y us+ \r ,,efile s]vice4 ,= m 9=m,n1 visit3 _+www.cra.gc.ca/efile_:4 ,view or *ange yr tax 9=m,n ''' ,my ,a3.t ,*eck yr refund1 a3.t bal.e1 ,canada ,* ,tax ,b5efit1 ,univ]sal ,* ,c>e ,b5efit1 ,,gst/,,hst cr$it1 ,,rrsp 3tribu;n limit1 direct deposit1 & m* m on ,my ,a3.t4 ,y c al *ange yr #bef ,electronic fil+ s]vices return1 *ange yr a4ress1 au?orize a repres5tative1 or regi/] a =mal 4pute4 ,6use ,my ,a3.t1 y h 6regi/] =a ,gov]n;t ( ,canada epass1 : 9cludes ! mail+ (a ,canada ,rev5ue ,ag5cy secur;y code4 ,= m 9=m,n1 visit3 _+www.cra.gc.ca/myaccount_:4 ,make yr pay;t onl9e ''' ,onl9e pay;t ,y c make yr pay;t "? yr f9ancial 9/itu;n's ,9t]net or teleph"o bank+ s]vices4 ,try x6 ,x's z easy z pay+ any o!r bill onl9e4 ,= m 9=m,n1 visit3 _+www.cra.gc.ca/_& electronicpayments_:4 #beg