T5008 Reporting in both sections or one

[ujay]

I was issued a T5008 form for shares I sold.  Some were losses.   There are two seperate T5008 forms on UFile.  One is for "investment income" and the other is for "capital gains/losses."  Both forms are completely identical so I am unsure whether to fill out both or just the "investment income" form.  Does anyone have any advice on this matter? Thanks in advance. 

 

This is a copied question from dariantax which i couldn't have asked better myself.

 

Help is appreciated

[Bretonix]

The T5008 pages in UFile look identical because there is only one actual form T5008.

The results however are quite different:

 - data entered in the "investment income" page generate entries in Schedule 4

 - data entered in the "capital gains/losses" page generate entries in Schedule 3

 

As the T5008 form your received relates to shares you sold you use the "capital gains/losses" T5008.

 

However be careful not to duplicate your entries.

When you sold your shares you might have received a transaction sheet which you then use to make an entry in the Capital gains section of UFile.

If this is your situation do not use the T5008 page.

[ujay]

Ok I think I got.

 

My trading summary from the bank has no box numbers and I have to provide the ACB which doesn't appear on my trading summary for all the transactions.  The summary does say T5008 on it, but it is not.  Therefore it would go in the Capital Gains (Losses) section only.

[Bretonix]

Also be careful as your trading summary normally shows Buys as well as Sells.

Buys must not be reported in your tax return.

 

The summary is right in saying T5008 as T5008 is the way to report ALL your transactions to CRA.

For further information you might want to consult the following publication

T4091 T5008 Guide - Return of Securities Transactions 2015

http://www.cra-arc.gc.ca/E/pub/tg/t4091/README.html

[MtnRose]

Bretonix

Do I understand correctly that:

Brokerages and similar institutions send CRA a T5008 when securities are sold (and on other occasions).  When an individual opens a "My CRA Account" they can see/download the T5008's and can also import these into their electronic income tax return (Ufile, TurboTax...).  However, even though these tax packages as setup to import T5008's, if these are issued by the broker to report capital gains to CRA, then in nearly all cases, they should not be entered as T slips on a tax return and that is why investment firms do not send them out to individuals, only to CRA .  If T5008's are entered on a tax return as T slips and then in a different section of the tax package, Capital Gains is calculated and entered on the securities which have been sold, then this essentially doubles the Capital Gains an individual is reporting on their income tax return. Individuals can use some of the info they can find on their T5008 for working out their Capital Gains and entering this in the Capital Gains section of their return but only enter the info in the Capital Gains section and not in the T slips section ???????

 

I would appreciate you or anyone else confirming this for me or correcting me.

Thanks !

[marjorieAV]

First time I received a T5008- box 16 has the quantity of securities. Box 20 is cost/book value. Box21 is disposition, which is a higher figure. Is capital gains that difference (and entered in the cap gains space on ufile? Or can I just ignore it?

marjorieAV

 

 

[clw]

In the Interview, you can select the T5008 forms under ‘Capital Gains’, and complete them.They will then correctly populate the Capital Gains (formerly Schedule 3, but now part of the main return), calculating the gain or loss. The amounts in boxes 20 and 21 multiplied by the number of units yields the gain or loss, and Ufile automatically calculates this.

[marjorieAV]

Thanks, clw for your response