Schedule 6 (summary of dispositions of capital property)

A corporation that disposes of capital property, such as shares or real estate, meets Schedule 6 when it files its return for that year. The CRA describes the form as one for corporations that have disposed of capital property or claimed an allowable business investment loss, or both, in the taxation year.

What the CRA guide says

• The T2 guide says to complete Schedule 6 if you disposed of capital property during the tax year and incurred capital losses or realized capital gains.
• The first six parts of the schedule reflect six categories of capital property; Part 4 (other properties) is for capital property not already reported elsewhere on the schedule.
• A corporate partner reports its share of a partnership’s capital gain or loss on its own Schedule 6.

What to ask

Ask which assets were reported as capital property and how each gain was worked out from its adjusted cost base. Whether a sale produces a capital gain or business income is a question of tax law, not of the schedule. For the bigger picture, see how capital gains are taxed when you sell your business.