An eligible individual is entitled to a cumulative lifetime capital gains exemption (LCGE) onnet gains realized on the disposition of qualified property. This exemption also applies to reserves from these properties brought into income in a tax year.
If you disposed of qualified farm of fishing property (QFFP), qualified small business corporation shares (QSBCS), qualified farm property (QFP), or qualified fishing property (QXP) you may be eligible for the LCGE. Because you only include one half of a capital gain in your income, your cumulative capital gains deduction is one half the LCGE.
The total of your capital gains deductions on gains arising from dispositions in 2023 of qualifying capital property has increased to $485,595 (one half of the $971,190 LCGE for 2023).
For dispostions of QFFP after April 20, 2015, the LCGE is increased to $1,000,000. This additional deduction does not apply to dispostions of QSBCS:
The limit on gains arising from dispostion in 2022 of qualifying capital property is $456,815 (one half of a LCGE of $913,630)
The limit on gains arising from dispostion in 2021 of qualifying capital property is $446,109 (one half of a LCGE of $892,218)
The limit on gains arising from dispostion in 2020 of qualifying capital property is $441,692 (one half of a LCGE of $883,384)
The limit on gains arising from dispostion in 2019 of qualifying capital property is $433,456 (one half of a LCGE of $866,912)
The limit on gains arising from dispostion in 2018 of qualifying capital property is $424,126 (one half of a LCGE of $848,252)
The limit on gains arising from dispostion in 2017 of qualifying capital property is $417,858 (one half of a LCGE of $835,716)
The limit on gains arising from dispostion in 2016 of qualifying capital property is $412,088 (one half of a LCGE of $824,176)
The limit on gains arising from dispostion in 2015 of qualifying capital property is $406,800 (one half of a LCGE of $813,600)
The limit on gains arising from dispostion in 2014 of qualifying capital property is $400,000 (one half of a LCGE of $800,000)
Because the capital gains inclusion rate in 2023 is 1/2, only 50% of the capital gain from a disposition of property is taxable.
In a year, you can claim any amount of the deduction you want, up to the maximum allowable amount you calculated.
