Use this form to calculate your annual gains limit, cumulative gains limit, and capital gains deduction limit for 2024 if any of the
following apply:
- You disposed of qualified farm or fishing property (QFFP) or qualified small business corporation shares (QSBCS) in 2024
-
You are reporting a reserve in 2024 from the disposition of QFFP, QSBCS, qualified farm property (QFP) or qualified fishing property (QXP)
For definitions of qualified farm or fishing property and qualified small business corporation shares, see Guide T4037, Capital Gains.
Notes:
You must be a resident of Canada throughout 2024 to be eligible to claim the capital gains deduction. For the purpose
of this deduction, the CRA considers you to be a resident throughout 2024 if you were a resident of Canada for part
of 2024 and throughout 2023 or 2025.
Deferred capital gains from the disposition of QSBCS do not qualify for this deduction.
Before you start
Complete Schedule 3, Capital Gains or Losses, to report the disposition of QFFP, QSBCS or the inclusion of reserve amount
from prior-year dispositions of QFFP or QSBCS, and to calculate your taxable capital gain or loss for 2024.
Complete Form T2017, Summary of Reserves on Dispositions of Capital Property, if you are reporting a reserve claimed on
your 2023 return or are claiming a reserve for 2024.
Complete Form T936, Calculation of Cumulative Net Investment Loss (CNIL) to December 31, 2024, if you have investment
income or investment expenses in 2024. Form T936 lists the components of investment income and expenses for the purpose
of calculating your CNIL.
To get these forms, go to canada.ca/cra-forms-publications.
Capital gains deduction limit
For 2024, there are two inclusion rates:
-
For dispositions for Period 1 between January 1 and June 24, 2024, the inclusion rate is generally 1/2 (50%).
-
For dispositions for Period 2 between June 25 and December 31, 2024, the inclusion rate is generally 2/3 (66.6667%).
If you disposed of QFFP, QSBCS, QFP, or QXP, you may be eligible for the lifetime capital gains exemption (LCGE).
Since only one half of a capital gain is included in income, the cumulative capital gains deduction is one half of the LCGE.
Limit on gains arising from dispositions of qualifying capital property for 2015 to 2024
Year of disposition |
Lifetime capital gains exemption |
2015 | $406,800 (1/2 of $813,600) | 2016 | $412,088 (1/2 of $824,176) | 2017 | $417,858 (1/2 of $835,716) | 2018 | $424,126 (1/2 of $848,252) | 2019 | $433,456 (1/2 of $866,912) | 2020 | $441,692 (1/2 of $883,384) | 2021 | $446,109 (1/2 of $892,218) | 2022 | $456,815 (1/2 of $913,630) | 2023 | $485,595 (1/2 of $971,190) | 2024 | Period 1: $508,418 (1/2 of $1,016,836) Period 2: $833,333 (2/3 of $1,250,000) |
For more information, see the section called "Claiming a capital gains deduction" in Guide T4037, Capital Gains.
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