jlijli Posted April 11, 2022 Report Share Posted April 11, 2022 I held some IBM shares in 2021, and received some spin-off shares for KYNDRYL. I only received a T5008 from my broker, which only shows the date and number of units. Does anyone know where I should report it (in Ufile) please? Thanks a lot! Quote Link to comment Share on other sites More sharing options...
JohnA Posted April 14, 2022 Report Share Posted April 14, 2022 IBM recently filed with CRA to have this spinoff qualify under a section 86.1 election. (Or maybe 85.1, I’ve forgotten which one applies here but it’s obvious if you look them up) Making the election allows you to defer income tax until you sell those shares, so that’s usually the better choice in most cases. However, I think you may have to file a paper return to make this election. Be sure to properly calculate your ACB for the new shares, and update the ACB for the remaining IBM ones. See the documents on making this election for the calculations. If you choose to do this, you omit the 5008 from UFile. Quote Link to comment Share on other sites More sharing options...
jlijli Posted April 16, 2022 Author Report Share Posted April 16, 2022 Thanks a lot for your response John. That's very helpful. I would like to file electronically so I will have to report it as foreign dividends. Since I didn't get a T5, should I report it under "Foreign income or foreign property"-> "Income from foreign dividends" on ufile? And, my understanding is, if I reported the spin-off as foreign dividend, I will no longer need to adjust the cost base on my IBM and KYNDRYL shares when I sell them is that right? Thanks again! Quote Link to comment Share on other sites More sharing options...
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