Proceeds of Disposition in Canada: The Definition, the Formula, and Twelve Worked Examples

What proceeds of disposition means

Proceeds of disposition is the amount you receive, or are considered to have received, when you dispose of property. In most cases it is the selling price. CRA's Guide T4037 puts it this way: "This usually is the amount you received or will receive for your property. In most cases, it refers to the sale price of the property. This could also include compensation you received for property that has been destroyed, expropriated or stolen."

The Income Tax Act defines the term in section 54, and the definition opens with "the sale price of property that has been sold". It then keeps going, through compensation for property taken, destroyed or damaged, insurance and expropriation amounts, and mortgage foreclosures, and it uses the word "includes", so the list is not closed. The full catalogue is set out near the end of this guide. For an investor holding listed shares, ETFs and mutual funds, the sale price does almost all of the work.

"Disposition" is the other half of the phrase. Subsection 248(1) defines it to include "any transaction or event entitling a taxpayer to proceeds of disposition of the property", and then a series of events that count with no sale at all, such as a share being redeemed or converted on a merger. A gift, a transfer into a TFSA, a death and a move abroad are all dispositions too, with proceeds the Act supplies because nobody paid any. Those cases have their own section below.

For 2025 and 2026 returns, one-half of a capital gain is taxable, and the 2025 Schedule 3 prints the 50% inclusion rate on its face. The increase proposed in 2024 was deferred on January 31, 2025 and cancelled on March 21, 2025, and never took effect.

Proceeds in the capital gain formula

The gain formula is subparagraph 40(1)(a)(i) almost word for word. A gain is "the amount, if any, by which the taxpayer's proceeds of disposition exceed the total of the adjusted cost base to the taxpayer of the property immediately before the disposition and any outlays and expenses to the extent that they were made or incurred by the taxpayer for the purpose of making the disposition." Paragraph 40(1)(b) defines a loss the same way in reverse.

Three figures, three columns. Every property section of Schedule 3 has the same five columns: year of acquisition, proceeds of disposition, adjusted cost base (ACB), outlays and expenses, and the gain or loss, which the form defines as column 2 minus columns 3 and 4. Proceeds is the gross figure. The commission you paid to sell does not reduce it. That commission goes in column 4, and the commission you paid to buy went into ACB on the day you bought. Each cost lowers the gain exactly once, through its own column.

CRA's own example, filled in. Guide T4037 works a sale of 400 shares for $6,500 with an ACB of $4,000 and $60 of selling costs. The gain is $6,500 minus $4,060, or $2,440, and the taxable half is $1,220 on line 12700. Here is that trade as a Schedule 3 row.

On the 2025 form, publicly traded shares, mutual fund units and other shares sit on line 4 of Part 3. The total of column 2 for every row on that line goes on line 13199, "Total proceeds of disposition", and the total of column 5 on line 13200. That is what "total proceeds of disposition" means when a tax program asks for it. It is the sum of the proceeds column, before any cost or expense comes off. Real estate and depreciable property use line 5, with totals on lines 13599 and 13800. The guide to how a T5008 maps onto Schedule 3 walks the whole form line by line.

How to calculate proceeds of disposition step by step

1. Identify the disposition and its date. For an exchange trade, ActiveACB uses the settlement date, following CRA technical interpretation 2012-0468931C6. The foreign currency section below explains why the date matters.
2. Start from the gross amount, units sold times the price, plus anything else the Act folds in, such as an option premium on assignment.
3. If the amount is in a foreign currency, convert it to Canadian dollars at the Bank of Canada rate for that date, to four decimals.
4. Check the T5008. If Box 21 matches your gross figure, use it. If it is net of commission, gross it up or skip the outlay, never both.
5. Enter the proceeds in column 2, the ACB of the units sold in column 3, and the selling costs in column 4. Column 5 is the result.
6. Report the row even when column 5 is a loss. CRA already holds the Box 21 figure from your broker, and a disposition that is missing from Schedule 3 looks like an unreported gain.

Example 1, a plain sale with a commission. You bought 100 shares at $40.00 with a $9.95 commission, so your ACB is $4,009.95. You sell all 100 at $60.00 and pay another $9.95. Proceeds are $6,000.00, the outlay is $9.95, and the gain is $6,000.00 minus $4,009.95 minus $9.95, which is $1,980.10. The same trade lands differently depending on what your broker put in Box 21.

Example 2, a partial sale from a pooled position. You hold 300 units with a total ACB of $9,000.00, or $30.00 per unit, built up over several purchases. You sell 100 at $50.00 with a $4.95 commission. Proceeds are $5,000.00. The ACB of the units sold is 100 times $30.00, or $3,000.00, because the Act averages identical properties and does not let you pick lots. The gain is $5,000.00 minus $3,000.00 minus $4.95, which is $1,995.05. The remaining 200 units keep an ACB of $6,000.00, still $30.00 each. Proceeds only ever describe the units that left, and the ACB per unit of what stays behind does not move.

Outlays and expenses, and what does not belong there

Outlays and expenses are the fourth column, and the phrase confuses people because it sounds broader than it is. Guide T4037 defines them as "amounts that you incurred to sell a capital property", adds that you "cannot reduce your other income by claiming a deduction for these outlays and expenses", and lists what qualifies: "fixing-up expenses, finders' fees, commissions, brokers' fees, surveyors' fees, legal fees, transfer taxes and advertising costs." The test in the Act is the one quoted above, costs "made or incurred by the taxpayer for the purpose of making the disposition."

Where the proceeds figure comes from

For a securities sale, the figure normally arrives on your T5008 in Box 21, "Proceeds of disposition or settlement amount". CRA's instructions to the broker are to enter "the total proceeds received by or credited to the recipient in exchange for the securities", and then, in so many words, "Report only the total proceeds in box 21. Do not deduct any expenses from the proceeds and do not report negative amounts." On a slip prepared to that instruction, Box 21 is gross and the commission belongs in column 4.

Not every slip is prepared to that instruction. Interactive Brokers Canada's tax forms page says that "Box 21 reports the gross proceeds less commissions and fees, for all your transactions." That is a net figure. Copy it into column 2, enter the commission in column 4 as well, and you have deducted the same dollars twice. The check takes a minute. Compare Box 21 for one trade against the confirmation. If it equals shares times price, the slip is gross. If it is short by the commission, the slip is net, and you either gross it back up and claim the outlay or leave it as reported and claim nothing. The guide to T5008 Box 20 and Box 21 covers the rest of the slip, including why Box 20 is a broker's book value that CRA says "may or may not reflect" your ACB, and why book cost is not your ACB once you hold the same security in two places.

Many dispositions produce no slip at all, and several slips carry figures that look like proceeds and are not. The table sorts them.

Proceeds in a foreign currency

Schedule 3 only takes Canadian dollars. Section 261 requires Canadian tax results to be computed in Canadian currency, converted at the "relevant spot rate" for the day the amount arose, which it defines as "the rate quoted by the Bank of Canada on the particular day" or, if none was quoted, the closest preceding day. CRA's guidance on that rate adds the precision: "Use the Bank of Canada daily exchange rate, to 4 decimal places, of the particular day." Guide T4037 then splits the conversion three ways. Proceeds convert at the rate "in effect at the time of the sale", ACB at the rate when the property was acquired, and outlays at the rate when they were incurred. One average rate for the year is not the rule for a securities sale. Income Tax Folio S5-F4-C1 allows an average only for "certain income items" and warns that it "will not generally be accepted" when rates have moved significantly.

Which day is "the time of the sale" for an exchange trade is a live question, because the trade date and the settlement date differ. CRA technical interpretation 2012-0468931C6 treats settlement, the day the shares and the money change hands, as the disposition date for exchange trades. ActiveACB follows that position as its convention. Each leg is converted at the settlement-date rate when the broker file provides one, and at the trade-date rate otherwise, always with the same convention on both legs. The gap is now one business day. Canada's securities regulators moved the standard settlement cycle from T+2 to T+1 on May 27, 2024, one day ahead of the United States. A trade on a Friday still settles the following Monday, and a swing in the dollar over that weekend lands in your proceeds.

Example 3, a U.S. stock sold in U.S. dollars. You bought 100 shares at US$50.00 with a US$5.00 commission, US$5,005.00 in all, on a settlement date when the Bank of Canada rate was 1.3500. Your ACB is C$6,756.75. You sell all 100 at US$70.00 on a settlement date when the rate is 1.3000. Proceeds are US$7,000.00 times 1.3000, or C$9,100.00, and the US$5.00 commission is an outlay of C$6.50. The gain is $9,100.00 minus $6,756.75 minus $6.50, which is $2,336.75. The dollar's fall between the two dates is inside that number. The Act does not track it separately. The guide to USD trades and ACB covers the U.S.-dollar cash that the sale leaves behind, which is its own property with its own proceeds when you spend or convert it.

Example 4, Norbert's gambit. A gambit is a purchase of a dual-listed fund on one exchange and a sale on the other, and the sale is a disposition with proceeds in Canadian dollars like any other. You buy 1,000 DLR on the TSX at C$13.70 with a $9.95 commission, so the ACB of the pool is C$13,709.95. You journal the units to the U.S.-dollar listing, which is not a disposition because the same units are still yours, and sell 1,000 DLR.U at US$10.02, US$10,020.00, with a US$9.95 commission, on a settlement date when the rate is 1.3690. Proceeds are US$10,020.00 times 1.3690, or C$13,717.38, and the outlay is C$13.62. The result is a capital loss of $6.19, and it belongs on Schedule 3 whether or not the T5008 for the sale arrives in U.S. dollars. Run the gambit the other way, paying with U.S. dollars you already hold, and spending that cash is itself a disposition of currency with its own proceeds. The guide to Norbert's gambit and ACB covers both directions and the broker reporting problems that follow.

Deemed proceeds when no money changes hands

The Act does not wait for cash. In a set of situations it deems you to have disposed of property at fair market value, and the deemed proceeds go in column 2 exactly as a sale price would. None of them produces a slip, and all of them are missed more often than any other item on this page.

Gifts and sales below value. Paragraph 69(1)(b) deems a taxpayer who disposes of anything to a non-arm's-length person for less than fair market value, or "to any person by way of gift", to have received proceeds "equal to that fair market value". Paragraph 69(1)(c) gives the recipient of a gift a cost equal to the same fair market value, so the gain is taxed once, on the giver. A cut-price sale is worse than a gift. Selling shares to your adult child for $1 still gives you deemed proceeds equal to what the shares were worth, and your child's cost stays at the $1 actually paid, so the same gain can be taxed a second time when the child sells.

Example 5, a gift of shares to an adult child. Your ACB is $4,000.00 and the shares are worth $10,000.00 on the day you transfer them. You are deemed to have received proceeds of $10,000.00 and you report a $6,000.00 gain, although no money arrived. Your child's ACB is $10,000.00. Transfers to a spouse or common-law partner follow a different default, a rollover at your ACB, covered in T4037 under transfers of property to your spouse.

Transfers in kind to a TFSA, RRSP or FHSA. Contributing shares to a registered plan is a disposition at fair market value, and it is the one deemed disposition that treats a gain and a loss differently. A gain is taxable in the usual way. A loss is deemed to be nil by subparagraph 40(2)(g)(iv), whose clause (A) covers a TFSA, an FHSA, a RRIF and several other plan trusts of which you are a beneficiary, and whose clause (B) covers an RRSP of which you or your spouse or common-law partner is the annuitant. Unlike a superficial loss, the denied amount is not added to any ACB, because the plan has no ACB for it to attach to. It is gone.

Example 6, an in-kind contribution, both ways. Shares with an ACB of $4,000.00 and a value of $10,000.00 moved into your TFSA produce deemed proceeds of $10,000.00 and a $6,000.00 taxable gain. Shares with an ACB of $10,000.00 and a value of $4,000.00 moved the same way produce deemed proceeds of $4,000.00 and a $6,000.00 loss that is deemed nil. The practical route with a losing position is to sell it on the market, contribute the cash, and not buy the same security back inside the plan within 30 days, because a repurchase in your own registered plan inside that window turns the loss into a superficial loss that is also lost for good.

Death. Paragraph 70(5)(a) deems a taxpayer who dies to have disposed of each capital property "immediately before the taxpayer's death" for proceeds equal to its fair market value, and paragraph 70(5)(b) gives whoever acquires the property a cost equal to that value. The gain lands on the deceased's final return. Where the property passes to a spouse or common-law partner who was resident in Canada, or to a qualifying spousal trust, and vests in them within 36 months of the death, subsection 70(6) rolls it over at the deceased's cost instead, so no gain arises until the survivor disposes of it. The legal representative can elect out of the rollover under subsection 70(6.2), property by property, which is useful when the deceased has losses to absorb the gain.

Example 7, a non-registered portfolio at death. The portfolio has an ACB of $200,000.00 and a value of $500,000.00 on the date of death. Left to an adult child, the deemed proceeds are $500,000.00 and the final return reports a $300,000.00 gain, of which $150,000.00 is taxable. The child's ACB is $500,000.00. Left to the surviving spouse, the deemed proceeds are $200,000.00, no gain arises, and the spouse's ACB is $200,000.00, so the same $300,000.00 is taxed later, when the spouse sells or dies. CRA's guide for doing taxes for someone who died covers the final return.

Leaving Canada. Paragraph 128.1(4)(b) deems an individual who ceases to be resident to have disposed of each property "for proceeds equal to its fair market value", and paragraph (c) deems it reacquired at the same figure. The exceptions include taxable Canadian property such as Canadian real estate, property of a business carried on in Canada, pension and registered plan rights, and, for someone resident five years or less, property they owned before arriving. A non-registered portfolio of listed shares is caught. The tax, though not the gain, can be deferred by posting security and electing on Form T1244 under subsection 220(4.5). CRA's page for emigrants lists the excluded property in full.

Change in use. Subsection 45(1) deems a property that starts or stops being used to earn income to have been disposed of "for proceeds equal to its fair market value at that later time" and immediately reacquired at the same figure. Renting out a former home, or moving into a former rental, is the common case. Elections under subsections 45(2) and 45(3) can defer the deemed disposition, so a change in use does not have to mean tax that year.

Real property, from a principal residence to a rental

Real estate follows the same formula with two differences. There is no slip, so every figure is yours to establish, and a property that includes a building has two sets of proceeds, because the building is depreciable property with its own rules.

Example 8, a home that was your principal residence every year. You bought for $400,000.00, sold for $700,000.00, and paid $30,000.00 in commission and legal fees. Proceeds are $700,000.00, the outlays are $30,000.00, and the gain before any exemption is $270,000.00. The principal residence exemption in paragraph 40(2)(b) reduces that gain to nil when the home was your principal residence for every year you owned it, or every year but one. The reporting is still mandatory. T4037 says that if you sold or were considered to have sold your home in 2025 "you must report the sale on Schedule 3" and designate it on Form T2091(IND). On the 2025 form the designation is Part 2 of Schedule 3, with the proceeds, the year of acquisition and a description of the property. Miss it and CRA "will accept a late designation in certain circumstances, but a penalty may apply". Where CRA does accept the late designation, subsection 220(3.5) sets the penalty at the lesser of $8,000 and $100 for each complete month between the original deadline and the day you ask.

Example 9, a rental property with land and a building. You sell a rental for $600,000.00 with $18,000.00 of selling costs. T4037 requires you to "determine how much of the selling price relates to the land and how much is for the building" and to "report the sale of your land and building separately on Schedule 3". Say $200,000.00 is land and $400,000.00 is building, and the selling costs split $6,000.00 and $12,000.00 in the same proportion.

The building's proceeds do two jobs, because "proceeds of disposition" has a second definition. Subsection 13(21) carries its own definition for depreciable property, and its paragraphs (a) through (d) repeat s. 54 almost word for word. What differs is the job the figure does. Under s. 54, proceeds are compared with ACB to produce a capital gain or loss. Under s. 13(21), proceeds net of selling costs, capped at the original capital cost, are credited against the undepreciated capital cost of the class. Here the $50,000.00 by which the capped proceeds exceed the remaining UCC is recapture of the capital cost allowance deducted in earlier years, included in income in full on the rental statement (Form T776) and not on Schedule 3. Above the capital cost, the proceeds produce a capital gain like any other, which is why one sale shows both a recapture and a gain. Had the building sold below its UCC and emptied the class at year-end, the shortfall would have been a terminal loss under subsection 20(16), deductible in full. It could not have been a capital loss. Subparagraph 39(1)(b)(i) excludes depreciable property from capital losses, and T4037 is blunt about it: "A loss from the sale of depreciable property is not considered to be a capital loss." Subsection 13(21.1) can also move proceeds from the land to the building when the building is sold below its cost amount and the land shows a gain, which stops a terminal loss from being manufactured out of an allocation. The same depreciable meaning applies to equipment and vehicles used to earn income, and the capital gains meaning applies to the land they sit on.

Example 10, a mortgage assumed by the buyer. You sell a property for $500,000.00. The buyer takes over your $300,000.00 mortgage and pays $200,000.00 in cash. Proceeds of disposition are $500,000.00, the sale price under paragraph (a) of the s. 54 definition, and nothing about the financing changes that. With an ACB of $350,000.00 and $20,000.00 of selling costs, the gain is $130,000.00. The $300,000.00 the buyer assumed, or a payout you made from the cash, is a financing item. It is not a reduction of proceeds and it is not an outlay.

The capital gains reserve for proceeds you have not received

Proceeds are proceeds when you become entitled to them, not when the cheque clears, so a sale paid over several years is fully a disposition in the year of sale. Subparagraph 40(1)(a)(iii) lets you claim "a reasonable amount as a reserve in respect of such of the proceeds of disposition of the property that are payable to the taxpayer after the end of the year", capped so that at least one-fifth of the gain is brought in each year. T4037 describes the effect. The maximum reserve period is four years, "resulting in the total capital gain included in income over five years", with a nine-year reserve for family farm or fishing property and qualified small business shares transferred to your child. You cannot claim it in a year you were not resident in Canada at year-end, and an individual claims it on Form T2017. The amount claimed one year is added back to income the next, before any new reserve is taken.

Example 11, a sale with proceeds due next year. You sell shares of a private company for $100,000.00 with an ACB of $40,000.00 and no selling costs, a $60,000.00 gain. You receive $40,000.00 on closing and the remaining $60,000.00 is contractually due the following year. The reserve is the lesser of the gain times the unpaid share of the proceeds, $60,000.00 times $60,000.00 over $100,000.00, or $36,000.00, and four-fifths of the gain, $48,000.00. You claim $36,000.00 and report a $24,000.00 gain in the year of sale. The next year the $36,000.00 comes back into income and, with nothing left unpaid, no new reserve is available. Column 2 still shows the full $100,000.00 in the year of sale. The reserve is claimed on its own line, not by shrinking the proceeds.

Options and the premium

Writing an option is a disposition in its own right. Subsection 49(1) says the granting of an option "is a disposition of a property the adjusted cost base of which to the grantor immediately before the grant is nil", so the premium is proceeds of disposition of the option, against a cost of zero, in the year you write it. If the option is later exercised, subsection 49(3) undoes that treatment and instead includes, "in computing the vendor's proceeds of disposition of the property, the consideration received by the vendor for the option." The premium migrates from the option to the shares.

Example 12, a covered call, assigned or expired. You own 100 shares with an ACB of $4,000.00 and write one $55 call for a $400.00 premium, paying a $5.00 commission. If the call is assigned, your proceeds for the shares are the $5,500.00 strike plus the $400.00 premium, or $5,900.00. The two commissions, $5.00 to write and $5.00 on the assignment, are outlays of $10.00. The gain is $5,900.00 minus $4,000.00 minus $10.00, which is $1,890.00. If instead the call expires, nothing more happens. The $400.00 was proceeds of disposition of the option when you wrote it, with nil ACB and a $5.00 outlay, so the $395.00 gain sits in that year and the shares are untouched. The awkward case is a call written in December and assigned in February. The earlier year's $395.00 gain has to come out and the premium joins the following year's share proceeds. The guide to how options are taxed maps every outcome, including puts.

The full definition in the Income Tax Act

Section 54 says proceeds of disposition of property "includes" each of the following. The list matters outside securities, because it is what makes an insurance payout or an expropriation award a disposition with proceeds.

1. The sale price of property that has been sold, under paragraph (a), which covers almost every securities trade.
2. Compensation for property unlawfully taken, under paragraph (b).
3. Compensation for property destroyed, and any amount payable under an insurance policy for its loss or destruction, under paragraph (c).
4. Compensation for property taken under statutory authority, meaning expropriation, or the sale price when you sell to a body that has given notice it intends to expropriate, under paragraph (d).
5. Compensation for property "injuriously affected", lawfully or otherwise, under paragraph (e).
6. Compensation and insurance for damage to property, under paragraph (f), except to the extent it was spent on repairing the damage within a reasonable time.
7. Amounts arising when a mortgage or hypothec is foreclosed or property is surrendered to a creditor under s. 79, under paragraphs (g) and (h).

Paragraph (i) and the closing paragraphs (j) and (k) then deal with amounts the Act deems to be dividends, chiefly on a wind-up or a share redemption by a private corporation under s. 84 and s. 88. Those are taxed as dividends and are excluded from proceeds, subject to exceptions in s. 55(2) and s. 88(2) that do not touch an investor in listed securities. Subsection 248(1) supplies the matching list of events that are dispositions, including a share being redeemed, acquired or cancelled, a debt being settled, a share converted on an amalgamation or merger, and, in subparagraph (b)(iv), an option you hold expiring. Reorganizations have their own allocation rules, covered in the guide to spinoffs and the s. 86.1 election.

Nine common mistakes with proceeds of disposition

1. Deducting the commission twice. Box 21 is net at some brokers. Enter the outlay in column 4 only when column 2 is gross.
2. Reporting the cash you walked away with. Proceeds are the sale price under paragraph (a) of s. 54. A mortgage payout or an assumed mortgage never reduces them.
3. Converting at the wrong rate. Each leg converts at the Bank of Canada rate for its own date, to four decimals, with one date convention for both legs. A year-average rate on a single large trade is the case Folio S5-F4-C1 says will not generally be accepted.
4. Copying Box 21 without reading Box 13. A slip in U.S. dollars is not a Canadian-dollar figure, and a slip that is net is not gross. Check one trade per broker per year against the confirmation.
5. Treating a gift or an in-kind contribution as a non-event. Both are dispositions at fair market value, with a gain that is taxable this year.
6. Claiming a loss on shares moved into a TFSA or RRSP. Subparagraph 40(2)(g)(iv) deems it nil, and no ACB anywhere is increased.
7. Not reporting a principal residence sale because the gain is exempt. The exemption depends on the designation, and the designation lives on Schedule 3 and Form T2091(IND).
8. Calling the shortfall on a rental building a capital loss. Below UCC it is a terminal loss on the rental statement, and above UCC it is recapture. Only the land follows the ordinary capital gain rules.
9. Leaving the proceeds column blank on a loss, or padding it with T3 gains. Every disposition needs its proceeds in column 2 even when column 5 is negative, and capital gains from T3 and T5 slips go to Part 4, not into any proceeds figure.

How ActiveACB calculates proceeds

ActiveACB rebuilds proceeds from your broker's raw transaction export instead of copying the slip. Each sale's proceeds are computed from units and price, U.S.-dollar legs are converted at the Bank of Canada rate for their own settlement date when the file provides it, option premiums are folded into share proceeds or cost base the way s. 49 requires, and a gambit sale gets its own Canadian-dollar proceeds. Proceeds and outlays are reported separately, in the form Schedule 3 asks for, so a commission is counted exactly once whatever the broker did in Box 21. Where your T5008 and the calculated figure disagree, the reconciliation view shows the difference per security. The full rule set, including what the engine does not attempt, is in the methodology.

Frequently asked questions

What are proceeds of disposition?

Proceeds of disposition are the amount you receive, or are deemed to receive, when you dispose of property, and in most cases that is the sale price. Section 54 of the Income Tax Act defines the term to include the sale price, compensation for property taken, destroyed or damaged, and insurance and expropriation amounts. It is the first figure on a Schedule 3 row, before your adjusted cost base and selling costs are subtracted.

Does proceeds of disposition include the commission?

No. Proceeds are the gross sale amount, and the selling commission is an outlay and expense entered in its own column on Schedule 3. Some brokers report T5008 Box 21 net of commission, so check one slip against a trade confirmation before also claiming the commission, or you will deduct it twice.

Is proceeds of disposition the same as a capital gain?

No. Proceeds are what you received for the property. The capital gain is proceeds minus your adjusted cost base minus outlays and expenses, and only one-half of the gain is taxable. A sale can have large proceeds and no gain at all.

How do you calculate proceeds of disposition?

For an ordinary sale, multiply the units sold by the price, add anything the Act folds in such as an option premium on assignment, and convert to Canadian dollars if the trade was in another currency. Deduct nothing. The gain formula in s. 40(1) then subtracts the adjusted cost base and the outlays and expenses from that figure.

What exchange rate do I use for a U.S. dollar sale?

The Bank of Canada daily rate for the day of the disposition, to four decimals, with the ACB converted at the rate for the purchase date and the outlays at the rate for the day they were paid. CRA treats the settlement date as the disposition date for exchange trades, and ActiveACB uses it when the broker file provides one. A single average rate for the year is not the rule for a securities sale.

Is giving shares to a family member a disposition?

Yes. Paragraph 69(1)(b) deems you to have received proceeds equal to fair market value on a gift, so appreciated shares given to an adult child trigger a taxable gain even though no cash changes hands. The recipient's cost becomes that same fair market value. Transfers to a spouse or common-law partner follow a different default rule.

Do I report proceeds of disposition if I sold at a loss?

Yes. Enter the proceeds in column 2 and the ACB and outlays in their own columns, and show the loss in brackets in column 5. CRA already receives your Box 21 figure from the broker, and a disposition that is missing from Schedule 3 looks like an unreported gain.

Is transferring shares into my TFSA or RRSP taxable?

It is a disposition at fair market value. A gain is taxable in the year of the transfer, while a loss is deemed to be nil by subparagraph 40(2)(g)(iv) and is never added to any ACB. To use a loss, sell on the market first and contribute the cash.

Do I have to report selling my home if the gain is tax-free?

Yes. The principal residence exemption depends on designating the property on Schedule 3 and Form T2091(IND) in the year of sale. CRA may accept a late designation, but subsection 220(3.5) sets a penalty of $100 for each complete month it is late, up to $8,000.

Does proceeds of disposition include a mortgage the buyer assumes?

Yes. Proceeds are the full sale price under paragraph (a) of the s. 54 definition, whether the buyer pays cash, assumes your mortgage, or both. The mortgage balance is a financing item, not a reduction of proceeds and not an outlay.