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Gifts of publicly traded shares / T1170 / T5008 & Sch3
April 12, 2023
5:21 am
pcs
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April 16, 2020
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Anyone have experience of reporting an in-kind charitable donation of shares to a registered charity ?

We donated mutual fund shares with FMV of $X. The charity issued a receipt for $X which we include on Schedule 9 for donation credit.

The MF company issued a T5008 showing Box[21] Proceeds = $X and Box[20] Cost = $Y. Using CRA MyAccount, this T5008 is auto-filled into the Schedule 3 part 3 showing Gain of $X-$Y as per normal for a T5008. But I am not convinced this is correct in this case.

I've read CRA's P113 and completed Form T1170 with the full amount $X of the gift being eligible, so that all of the gain is eligible for 0% inclusion rate, and indeed the "See Form T1170 line" on Schedule 3 part 3 shows 0 gain being included from T1170. But the original T5008 entry remains, so that the Gain of $X-$Y is still included as taxable, as well as being "included" a second time from the T1170 with Gain = 0.

P113 does not refer to T5008 at all, so little help there. I found only one reference elsewhere online at CanadaHelps which simply says

... your financial institution may have issued you a T5008. This form can be offset by completing a T1170 as part of your tax return.

But I am not seeing the original T5008 "offset" by completing T1170 : it is in fact duplicated with an inclusion rate of zero the second time.

It seems to me that I should remove the original T5008 entry, or manually change the gain to zero for that slip, or some other such work-around remedy ?

Thanks in advance for any wisdom offered.

April 12, 2023
9:44 am
Bill
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Don't really know, never done this, but I'd probably just remove the original T5008 as in my view it's been superseded by T1170 designation/calculation. T5008 is just an informational slip that may be of assistance in completing Sch 3, is my understanding.

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