Lifetime Capital Gains Exemption

[Doren]

I for the life of me cannot find where to check off that I want a disposition of qualified small business shares to be reported in my lifetime capital gains exemption.  I can get the program to generate a T-657 which is the correct form but it will not claim the disposition of my shares.

[Maggie3]

Hello Doren,

Capital gains deduction - Line 25400

If you disposed of property that qualifies for the capital gains exemption during the taxation year, namely:

a) Qualified small business corporation shares.
b) Qualified farm property.
c) Qualified fishing property.

Please follow the steps below:

1- On the "Left side menu on the Interview tab", select "Interview setup".

2- On the right-hand side of the screen, go to the "Investment income and expenses" group, check the box for "Capital gains (or losses) and capital gain history" and click "Next" at the bottom of the page.

3- Return to the "Left side menu on the Interview tab" and choose the item "Capital gains (or losses) & ABIL".

4- On the screen to your right, select the appropriate item, in this case "Qualified small business corporation shares (QSBCS)" and enter your information on capital gains on this page.

The program will carry over your capital gains deduction on line 25400 of the federal return and, for Quebec residents, on line 292 of the Quebec return. In addition, the program will generate federal Form T657 and Quebec Form TP-726.7.

For more information on the capital gains deduction, please consult the following CRA links:

https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-254-capital-gains-deduction.html

https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4037.html

[Doren]

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