Qualified fishing property capital gains deduction

Qualified fishing property is also eligible for the enhanced lifetime cumulative capital gains deduction limit to $1 million, effective for dispositions of qualified fishing property after April 20, 2015.39 Similar to the rules for farm property and small business shares, the available capital gains deduction will be reduced by the amount of capital gains deductions claimed on other property. In addition, the amount of gain eligible for this deduction may be affected by the balance in your cumulative net investment loss (CNIL) account (see topic 149) and if you have ever claimed an allowable business investment loss (ABIL) (see topic 142).

A qualified fishing property includes

  • real property and fishing vessels used in a fishing business;
  • eligible capital property, such as an interest in a fishing license;
  • a share of the capital stock of a family fishing corporation; or
  • an interest in a family fishing partnership.

Prior to 2014, a property used in a combination of farming and fishing could qualify for the lifetime capital gains deduction only if it was used principally (generally interpreted as 50% or more) in one of those activities. Effective for dispositions in 2014 and subsequent years, eligibility for the enhanced deduction is extended to property that is used principally in a combination of farming and fishing.


39 Qualified fishing property became eligible for the deduction effective for dispositions of property after May 1, 2006. For dispositions prior to April 21, 2015, the lifetime limit was the same as the limit for the disposition of QSBC shares.