capital gains
Loopholes Tagged "capital gains"
Plain-English guides to Canadian legal rights and workarounds related to capital gains.
Joint Tenancy and Right of Survivorship — Bypass Probate by Co-Owning Property
Property held in joint tenancy passes automatically to the surviving co-owner on death — bypassing the estate and probate entirely — but the strategy has significant tax and family law implications that must be understood first.
Principal Residence Exemption (PRE)
Capital gains on the sale of a Canadian principal residence are fully tax-exempt — with no dollar cap.
Capital Gains Reserve — Spread a Large Capital Gain Over Up to 5 Years
If you sell capital property and receive payments over multiple years, the capital gains reserve lets you report the gain gradually — over up to 5 years (10 years for farm or fishing property sold to family) — instead of all at once.
Donate Securities Directly to Charity — Eliminate Capital Gains Tax and Get the Full Donation Credit
Donating publicly traded securities (stocks, ETFs, mutual funds) directly to a registered charity eliminates capital gains tax entirely on the donated shares, while still generating a donation receipt for the full fair market value.
Principal Residence Change-in-Use Election — Protect Capital Gains When Converting Your Home to a Rental
When you convert your principal residence to a rental property (or vice versa), you can elect under s.45(2) to defer the deemed disposition and continue designating the property as your principal residence for up to 4 more years.