T1-2023
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Capital Gains (or Losses)
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Schedule 3
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Complete this schedule to report your taxable capital gains on line 12700 of your return. If you need more space, attach a separate sheet.
Attach a copy of this schedule to your paper return.
For more information about capital gains (or losses), including business investment losses, go to canada.ca/taxes-capital-gains or see Guide T4037, Capital Gains.
If you realized a gain on a disposition, you may be able to claim a capital gains deduction on line 25400 of your return.
If you have capital gains (or losses) on your T5, T5013, T4PS, and T3 information slips, report them on line 17400 or line 17600 of this schedule. |
Calculation of taxable capital gains (or net capital loss) in 2023
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If line 22 is negative
If the amount on line 22 is negative (loss), do not report it on line 12700 of your return. Instead, use your latest notice of assessment or reassessment to find out the amount of the loss that you can use to reduce your taxable capital gains of other years.
If you have a net capital loss in 2023 and would like to apply it against taxable capital gains that you reported on your 2020, 2021, or 2022 return, complete Form T1A, Request for Loss Carryback.
You can carry forward your net capital losses indefinitely and apply them against your taxable capital gains in the future.
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Principal residence
Complete this part if you disposed of a property (or properties) in 2023 that you are claiming a principal residence exemption for.
Also complete Form T2091(IND), Designation of a Property as a Principal Residence by an Individual (Other than a Personal Trust), or Form T1255, Designation of a Property as a Principal Residence by the Legal Representative of a Deceased Individual, whichever applies.
Even if you do not sell your property, you may have a deemed disposition that you must report. A deemed disposition occurs when you are considered to have disposed of property even though you did not actually sell it. For example, a deemed disposition may occur when you change how you use your principal residence, such as when you change all or part of your principal residence to a rental or business operation, or change your rental or business operation to a principal residence.
If you were not a resident of Canada for the entire time you owned the designated property, your period of non-residence may
reduce or eliminate the amount of the principal residence exemption. For more information, see Income Tax Folio S1-F3-C2,
Principal Residence
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Property flipping
A flipped property is a housing unit (including a rental property) located in Canada or a right to acquire a housing unit located in
Canada that you owned or held, for less than 365 consecutive days before its disposition (12-month holding period). A property is
not considered a flipped property if it was already considered to be inventory or was owned or held for 365 or more consecutive days
before its disposition or if the disposition occurred due to, or in anticipation of, certain life events as listed at line 17906 below.
If you disposed of a flipped property, the resulting gain on the disposition is taxable as business income and not as a capital
gain. To report this transaction, complete Form T2125, Statement of Business Income or Professional Activities.
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For more information about property flipping, go to canada.ca/cra-property-flipping.
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