Donated securities

[CharlesF]

I donated securities to a charity.  The brokerage sent me a t5008 showing the value of the securities as disposition.

I gather that I need to set the Inclusion Rate to zero for that capital gain; where do I do that in Ufile???

Thanks

CharlesF

[JohnA]

I have the same problem. The inclusion rate is on the T1170, not the t5008. The problem if both slips are in your return is that 50% of the cap gain gets added into income, which it should not be. The only way I could get UFile to properly do this was to delete the t5008. I've done this for the past several years without problems. Line 127 should be zero if the only cap gain was from donated securities as best I can tell. Deleting the t5008 in UFile accomplishes this. Do not include the securities donation amount in the interview section on charitable donation. Otherwise it will show up twice on Sched 9... once from the T1170 and once from the tab in the interview. Using a T1170 automatically adds it to Sched 9, and shows zero inclusion rate.

Is TD Waterhouse your brokerage by any chance?  I've heard some other brokerages don't send T5008s for donations, but TD does.

[CharlesF]

Yes, I am with TDW!

It took me a long time to figure out how to get Ufile to present a T1170!  Once I achieved that, then I deleted the corresponding t5008.  Info showed up in the  sched with zero inclusion rate, but no way to indicate which charity it went to. 

Glad to hear it worked for you in the past.  Keeping my fingers crossed!

[JohnA]

Presumably you have a receipt from the charity for the security donation. I’m often asked to submit those, not every year but every few years it seems. 

[gsmacr]

On 4/12/2019 at 3:31 PM, JohnA said:

I have the same problem. The inclusion rate is on the T1170, not the t5008. The problem if both slips are in your return is that 50% of the cap gain gets added into income, which it should not be. The only way I could get UFile to properly do this was to delete the t5008. I've done this for the past several years without problems. Line 127 should be zero if the only cap gain was from donated securities as best I can tell. Deleting the t5008 in UFile accomplishes this. Do not include the securities donation amount in the interview section on charitable donation. Otherwise it will show up twice on Sched 9... once from the T1170 and once from the tab in the interview. Using a T1170 automatically adds it to Sched 9, and shows zero inclusion rate.

Is TD Waterhouse your brokerage by any chance?  I've heard some other brokerages don't send T5008s for donations, but TD does.

I am trying to deal with this problem for 2020 return. Received T5008 from TD. Unable to set inclusion rate to 0 after setting up T5008 on Ufile, and was unable to setup a T1170, although I did it successfully in filing 2019 return. Am tempted to delete the T5008, enter the charitable amount as a donation and if questioned by CRA offer an explanation... but there must be a better way. Any help appreciiated.

[Fran]

I had roughly the same question.  I made two donations of securities, which I did through Canada Helps, so have charitable donation receipts from them documenting the share transfers & sales, and the distributions  to charities.  The share transfer through my broker did not trigger a 5008; however, I knew I needed to generate a T1170 somehow, so I used the Capital Gains pages to enter each of the stock transfers.   At the bottom of these pages, when the form asks "Is this disposition a gift to a charity...". I chose YES INCLUSION RATE REDUCED. T1170 and on the next line for eligible amount put the full amount of the share sale (which is what the Canada Helps receipt showed).  My two questions are:  1) The last line on these pages is "If gift enter Class # of property - there is a long list of completely mysterious codes, none of which are explained there or , as far as I can discover, in the Tax Guide or the guide on Capital Gains.  So I have no idea whether any of these apply to stock - I assumed no and left it blank.  When I looked at my completed return, I do indeed have the T1170 for these donations, and the two amounts appear at the bottom of my list of other charitable donations and are included in the total, but (as someone above said) with no indication at all what they are/who the recipient is and no way to add this information.  (Originally I had listed these transfer donations when I listed all the other straight money donations, but then these values appeared twice).   If anyone understands the mysterious codes, please help!   And should I just go ahead and send it in without recipients? 

[EdR]

On the charitable donation page, enter .01 as the amount and In the description reference amount shown below without description from the T1170. That way should you be audited, it will show up that you declared the charitable donation and the amount once only.