In Canada, you must report capital gains to the CRA whenever you sell an investment property and realize a profit, with very few exceptions. The main exception is your principal residence (your home), which is generally exempt from capital gains tax. For all other investments like stocks, bonds, mutual funds, rental properties, and cottages, you'll need to report the gain on your tax return in the year you sell. Even if you don't receive a T5013 slip or other documentation, you're still required to report these gains yourself. A capital gain happens when you sell an investment for more than you paid for it. The taxable amount is 50% of that gain (as of 2024 and into 2026). Here's what triggers a reporting requirement: - Selling publicly traded stocks or ETFs - Selling mutual funds - Selling investment real estate (rental property, cottage, or land) - Selling a business or partnership interest - Selling cryptocurrency or digital assets - Selling artwork, collectibles, or precious metals - Selling bonds before maturity at a profit You report the full capital gain on your tax return, but only 50% is included in your taxable income.
Yes, you must report capital gains from selling any stocks or publicly traded investments in the year the sale occurs. The CRA receives copies of your sale from your brokerage, so they can cross-check your return. Only your principal residence is exempt from this requirement.
Yes, you should report capital losses as well. While losses don't increase your taxable income, they can offset capital gains from other investments sold in the same year, reducing your overall tax liability. Unused losses can be carried back three years or forward indefinitely.
Yes, cryptocurrency sales must be reported as capital gains, just like stocks or real estate. The CRA treats crypto as property, and you calculate the gain or loss the same way. Use your Canadian dollar value on the date you sold to determine the gain.
No. Capital gains are taxable when you sell or dispose of an investment, not when you cash out. However, unrealized gains (profits that exist on paper but haven't been sold) are not yet taxable. You only owe tax once you actually sell the investment.
The adjusted cost base (ACB) is what you paid for an investment, including original purchase price, commissions, and fees. It matters because your capital gain is the sale price minus your ACB. Calculating ACB correctly determines how much tax you actually owe on the sale.