Capital gains
If you sell a property for more than it costs, you may have a capital gain. List the dispositions of all your properties on Schedule 3, Capital Gains (or Losses).
You will find a copy of this schedule in your T1 income tax package. For information on how to calculate your taxable capital gain, go to Line 12700 – Taxable capital gains.
Gains earned from the disposition of a flipped property are fully taxable as business income, not capital gains. For more information, go to Flipped property rules in guide T4002.
You may be a partner in a partnership and receive a T5013 slip, Statement of Partnership Income. If the partnership has a capital gain, it will allocate part of that gain to you. The gain will show on the partnership's financial statements or on your T5013 slip.
Note
You cannot have a capital loss when you sell depreciable property. However, you may have a terminal loss. For more information, go to Terminal loss in guide T4002.