When you sell an asset (stocks, real estate, crypto, mutual funds) for more than you paid, the profit is a capital gain. In Canada, only 50% of a capital gain is taxable - this is called the inclusion rate. The federal government confirmed that the rate remains at 50% for individuals. If you sell your home and it qualifies as your principal residence, the gain is completely tax-free. If you sell an investment at a loss, that capital loss can be used to offset capital gains - either in the current year, carried back three years, or carried forward indefinitely. Capital gains from selling securities are usually reported on Schedule 3 of your tax return.