Usually, you have a capital gain or loss when you sell or are considered to have sold capital property. The following are examples of cases where you are considered to have sold capital property:

• you exchange one property for another;

• you give property (other than cash) as a gift;

• shares or other securities in your name are converted;

• you settle or cancel a debt owed to you;

• you transfer certain property to a trust;

• an option that you hold to buy or sell property expires;

When must I report a capital gain or loss?

As an individual, you must report the disposition of capital property in the calendar year (January to December) that you sell, or are considered to have sold. Regardless of whether or not the sale of a capital property results in a capital gain or loss, you must file a return to report the transaction (even if you do not have to pay tax!).

How is a capital gain or loss calculated?

To calculate any capital gain or loss, you need to know the following three amounts:

• the proceeds of disposition;

• the adjusted cost base (ACB); and

• the outlays and expenses incurred to sell your property.

You have a capital gain when you sell, or are considered to have sold, a capital property for more than the total of its ACB and the outlays and expenses incurred to sell the property.

How do I calculate capital gain or loss?

Simple. Stephen Du, an experienced lawyer holding an accounting degree and partner of Du Markowitz LLP, will process your claim from start to finish, ensuring full compliance CRA’s scheme for calculating Capital Gains or Losses. We also offer a full-service tax program to get your maximum entitlement from CRA.