Capital gains

You have a capital gain when you sell an investment or property for more than its cost. Half of the gain is included in your income. The proposal to raise this rate was cancelled in 2025.

Buy shares for $10,000, sell for $16,000. The gain is $6,000, and $3,000 is taxable.

What to know

• Tax normally applies only when you sell, not while the value rises.
• Your cost includes commissions. Identical shares are averaged into one adjusted cost base.
• Capital losses can only offset capital gains. Unused net losses can go back 3 years or forward indefinitely.
• Superficial loss: if you or an affiliated person buy the same investment within 30 days before or after the sale and still hold it 30 days later, you cannot claim the loss now.

Your broker may issue a T5008 slip, but confirm its cost figure. You report sales on Schedule 3.