Capital Gains or Losses (Schedule 3 and Schedule G)

You’ll need to use the federal Schedule 3 form to report any capital gain (or loss) you have from the disposition (sale or transfer) of a capital property – specifically, shares, bonds, debts, land, or buildings – and if you want to claim a capital gains reserve.

You can even have a capital gain or loss if you’re considered to have sold capital property. This can happen if you:

  • Give property (other than cash) as a gift
  • Settle a debt someone else owes you
  • Transfer property to a trust
  • Exchange properties
  • Owned property that was destroyed or stolen

Regardless of whether the disposition of a capital property results in a gain or a loss, you have to file a tax return to report the transaction, even if you aren’t required to pay tax. This is also true if you’re claiming a capital gains reserve.

Note: If you’re a resident of Québec, you’ll also need to complete Schedule G. Fortunately, both the Schedule 3 and Schedule G are combined in H&R Block’s tax software.