What Schedule 3 is for
Schedule 3 — Capital Gains (or Losses) is where you report the disposition of capital property for the year. The net taxable gain it produces flows to line 12700 of your T1 return. You file it whenever you have a reportable disposition, even if the result is a loss.
Pick the right section
Schedule 3 groups dispositions by type of property, each with its own section. For most investors the relevant one is publicly traded shares, mutual fund units, and other shares. Other sections cover real estate, bonds, and personal-use property. Crypto is generally reported with your other securities as capital property (unless it is business income).
The four columns for each disposition
Within a section, each disposition (or grouped holding) needs:
| Column | What to enter |
|---|---|
| Number / description | Units and the security name (e.g. “100 sh XYZ Corp”) |
| Proceeds of disposition | What you received on the sale, in CAD |
| Adjusted cost base | Your pooled ACB for the units sold, in CAD |
| Outlays and expenses | Selling commissions and costs of disposition |
The gain or loss for each line is proceeds minus ACB minus outlays. You can group all sales of the same security together, since they share one pooled cost base.
How the taxable amount is calculated
Add up the gains and losses across all sections to get your net capital gain for the year. Only the taxable portion — the net gain multiplied by the inclusion rate — is carried to line 12700 and taxed at your marginal rate. Confirm the inclusion rate for the specific year you are filing.
Getting the numbers right
The form is simple arithmetic; the accuracy lives in the inputs. The adjusted cost base must reflect pooling across accounts, reinvested distributions and return of capital, FX on US-dollar holdings, and any corporate actions. A T5008 can confirm proceeds, but its cost-base box is often blank or wrong — so reconcile before you transcribe.