📊 T5013 Schedule 6 – Summary of Dispositions of Capital Property

T5013 Schedule 6 is a key tax form used by partnerships in Canada to report the disposition of capital property, including capital gains and losses during a fiscal period.

📌 Definition: This schedule summarizes all capital transactions made by a partnership, such as selling assets, shares, or real estate.

🧾 When is Schedule 6 required?

You must complete Schedule 6 if your partnership:

✔️ Disposed of capital property during the year
✔️ Realized capital gains
✔️ Incurred capital losses
✔️ Received tax slips reporting capital gains

These rules are defined in the CRA partnership reporting guide.

📊 What is “capital property”?

Capital property typically includes assets held for investment or long-term use:

🏢 Real estate and buildings
📈 Shares and securities
🚜 Equipment and business assets
🌾 Farm or fishing property

💡 Tip: If your business regularly trades assets (e.g., stocks), gains may be treated as business income instead of capital gains.

🔢 Key sections of T5013 Schedule 6

1. Qualified Small Business Corporation Shares (QSBCS)

Report shares sold during the fiscal period, including:

Number of shares
Class of shares
Name of the corporation

2. Qualified Farm or Fishing Property (QFFP)

Include details such as:

Municipal address
Legal description of the property

3. Other Capital Property

All other assets disposed of must also be reported with acquisition cost, proceeds, and resulting gain/loss.

📈 Capital gains inclusion rules

Schedule 6 may require separating gains depending on the date of disposition:

📅 Gains before a certain date
📅 Gains after regulatory changes

This ensures correct calculation of taxable capital gains under current CRA rules.

⚠️ Important: Tax rules on capital gains inclusion rates may change — always verify current rates before filing.

🧮 How to calculate capital gains

Basic formula:

Capital Gain = Proceeds of Disposition – Adjusted Cost Base – Expenses

✔️ Proceeds = selling price
✔️ ACB = original purchase cost
✔️ Expenses = legal fees, commissions

📉 Common mistakes to avoid

❌ Not reporting all dispositions
❌ Misclassifying business income as capital gains
❌ Incorrect cost base calculations
❌ Forgetting transaction costs

📊 Practical examples

✔️ Example: Partnership sells shares → report gain in Schedule 6
✔️ Example: Sale of rental property → capital gain reported
❌ Example: Inventory sales → NOT capital property

🧾 How Schedule 6 fits into T5013 return

Schedule 6 is part of the T5013 Partnership Information Return and works together with:

📄 Schedule 1 – Net income
📄 Schedule 8 – Capital cost allowance
📄 T5013 slips – Partner allocations

It ensures proper allocation of gains and losses among partners.

📈 Why Schedule 6 matters

💰 Determines taxable capital gains
📊 Impacts partner income allocation
⚖️ Ensures CRA compliance
📉 Helps track investment performance

❓ FAQ – Frequently Asked Questions

Do all partnerships need Schedule 6?

No, only those with capital property transactions during the year.

What if there are no gains or losses?

You generally do not need to file Schedule 6.

Can losses offset gains?

Yes, capital losses can offset capital gains according to tax rules.

Is Schedule 6 required for individuals?

No, it is specifically for partnerships filing T5013 returns.

📌 Conclusion

T5013 Schedule 6 is essential for accurately reporting capital property transactions within a partnership. Proper completion ensures compliance with CRA rules and correct allocation of taxable income.

🚀 Pro Tip: Use accounting software or consult a tax professional to avoid costly errors in capital gain calculations.

🔗 Official source: T5013 Schedule 6 – CRA Form