Example
In 2011, Jack sold 400 shares of XYZ Public Corporation of Canada for $6,500. He received the full proceeds at the time of the sale and paid a commission of $60. The adjusted cost base of the shares is $4,000. Jack calculates his capital gain as follows:

Proceeds of disposition			$6,500	A
Adjusted cost base	$4,000	B
Outlays and expenses on disposition	+ 60	C
Line B plus line C	= $4,060		−  4,060	D
Capital gain (line A minus line D)			= $2,440	E

Because only 1/2 of the capital gain is taxable, Jack completes section 3 of Schedule 3 and reports $1,220 as his taxable capital gain at line 127 on his income tax and benefit return.