To report capital gains on your Canadian tax return, you calculate your total gain (sale price minus adjusted cost base), apply the current inclusion rate, and report the taxable amount on line 12700 of your T1 General tax form (Schedule 3). The CRA requires you to report all capital gains in the year they occur, regardless of whether you've received payment, and you'll need supporting documentation showing your purchase price, sale price, and the date of the transaction. Timing matters when it comes to capital gains reporting. The year you report a gain is the year the asset is actually sold or disposed of, not the year you purchased it. This applies to: Stock or mutual fund sales Real estate transactions (excluding principal residence) Business asset disposals Cryptocurrency conversions Warrant or option exercises If you sell an investment in December 2026 but don't receive the proceeds until January 2027, you still report the gain on your 2026 tax return. By contrast, if an investment increases in value but you haven't sold it, no reporting is required until the sale actually happens. Most Canadian tax filers report capital gains using Schedule 3: Capital Gains (or Losses) in 2026.
Yes. You report capital gains in the year you sell the asset, not the year you receive payment. The CRA considers the gain realized on the sale date, regardless of when settlement occurs.
You need purchase confirmations (showing your cost base), sale confirmations (showing proceeds), and the dates of both transactions. Keep all brokerage statements or real estate closing documents for at least six years after filing.
Yes. Schedule 3 lets you offset capital losses against capital gains in the same year. If losses exceed gains, you can carry the excess back three years or forward indefinitely to offset future gains.
Tax software guides you through the same Schedule 3 calculations and automatically transfers amounts to the correct lines on your return. Both methods produce the same result; software just reduces manual entry errors and saves time.
No. Capital gains are reported the same way on Schedule 3 regardless of employment status. However, if you're self-employed and sell business assets, some dispositions may qualify for the capital gains exemption, which requires additional documentation.