Your broker will provide you or someone on your behalf with a T5008: Statement of Securities Transactions Slip, which lists all securities that were bought, sold, or cashed in during the year. The T5008 slip may include bonds, debentures, promissory notes, shares, mutual fund units, small business corporation shares, other shares that can be put off for a certain time, and T-bills that are sold at maturity. In addition to cash, the figures on the T5008 slip may also include the value of property resulting from the cancellation, trade, or conversion of securities. Be sure to include any consideration that has been paid or is due to you.

Understanding Your T5008 Securities Transactions Slip Statement

The T5008 slip is a document you receive from your broker that lists all the securities you, or someone on your behalf, bought, sold, or cashed in during the year. Here’s a breakdown of what you’ll find on the slip:

• Box 14: This box indicates the date on which your securities transactions took place, usually December 31 if there are multiple transactions to report.
• Box 16: The total amount of security that was disposed of.
• Box 17: A description of the security, which may be included in Box 21 if there are multiple securities.
• Box 20: This box shows the cost or value of the book, which is not always your adjusted cost basis (ACB). Your broker or advisor should be able to advise you of your ACB. If your broker leaves this field blank, you are responsible for calculating and reporting it.
• Box 21: This box may be used to specify the amount collected from each security if you choose to report on a per-security basis.

Your adjusted base cost is the sum of the acquisition cost and any associated charges, such as a broker’s fee. It excludes current expenses, such as those associated with operating your firm.

Reporting Capital Gains on Your T5008 Securities Transactions Slip

When reporting your capital gains or losses on your T5008 slip, it’s important to include any costs associated with selling or disposing of your securities during the year. These costs can be deducted from your gain or loss when calculating your net profit or loss from selling securities. Deductible expenses may include:

• Search fees
• Commissions
• Brokerage fees
• Surveyor fees
• Legal fees
• Transfer taxes and fees
• Advertising costs

Be sure to keep track of these expenses so that you can accurately report your capital gains or losses and minimize your tax liability.

Understanding Box 20 on Your T5008/Relevé 18 Tax Slip

Box 20 on your T5008/Relevé 18 tax slip represents the cost or book value of a security that you purchased. It includes adjustments for fees, reinvested dividends, returns of capital, and certain corporate changes related to the security. However, in some cases, adjustments may need to be made to the book value shown in Box 20 for tax reporting purposes.

If you did not purchase the security through CIBC Investor’s Edge, the value in Box 20 may be based on the amount the security was worth on the day it was transferred in. In addition, the adjusted cost base (ACB) may need to be changed if you use electronic slips from your online Canada Revenue Agency/Revenu Québec account.

It is important to verify with your tax advisor whether the amount in Box 20 is correct and if any adjustments need to be made based on your situation. This will help ensure accurate reporting of your securities transactions and minimize the risk of errors on your tax return.

Also read: Essential Information on Payment Dates and Benefits

Understanding the Difference between T5 and T5008 Slip Statements

No, a T5 and a T5008 slip are not the same. While a T5008 slip shows how securities were bought and sold, a T5 statement shows the amount of money earned from the transactions, also known as investment income. It is important to understand that investment income refers only to money earned from investments that are not in a tax-deferred account. On the T1 form, both sources of income must be recorded.

It is possible for these two slips to be related, with both showing the same income. Reporting both slips may result in double-reporting the same income. It is recommended to consult with the providers of the slips to determine which information needs to be reported.

Should I Include T5008 in My Tax Return?

If you have received a T5008 slip, it is important to include the information it contains in your income tax and benefits return. However, make sure that you have not already reported this income in other sections of your tax return, or you may be taxed on the same income twice. For instance, if your T5008 slip shows business income, report it in the “Business Income” section of your T1 return rather than the “Capital Gains and Losses” section.

It is worth noting that when using information from your T5008 slip, you need to report the amount in Canadian dollars, using the exchange rate in Box 13 of your T5008.

If you make an error on your T5008 slip, you can correct it by contacting the Canada Revenue Agency (CRA).

If you find it challenging to keep track of your investment earnings, some platforms offer assistance and advice with your taxes. You can seek their help and have a tax expert do your return from start to finish. This ensures that your tax return is accurate and complete.