If you are reporting a taxable capital gain on line 139, you may be entitled to a capital gains deduction, provided you meet both of the following conditions:

• You realized the gain when you disposed of (sold, transferred, exchanged, donated, etc.) qualified farm or fishing property, qualified small business corporation shares, shares covered by an intergenerational business transfer or certain resource property before March 26, 2025 (exceptions apply).
• You were resident in Canada throughout 2025, or you were resident in Canada at some point in 2025 and were either resident in Canada throughout 2024 or expect to be resident in Canada throughout 2026.

For more information on the capital gains deduction, see guide IN-120-V, Capital Gains and Losses. For the exceptions regarding resource property, see form TP-726.20.2-V, Capital Gains Deduction on Resource Property.

Forms to enclose

• Capital Gains Deduction on Qualified Property (TP-726.7-V)
• Capital Gains Deduction on Resource Property (TP-726.20.2-V)