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Email this8:51 pm
December 7, 2023
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NokomisStation said
usephraseMy best advice to you is to file on time if you have all the information you need. Don't trust the CRA, given their very poor communications. It is not even clear in their communications that if you file on time, and have a capital gain, whether interest would be charged from April 30 until June 2nd. It is mind bogginly pathetic to think that (with their immense human resources) that they cannot communicate to joe taxpayer the reality that joe taxpayer exists in.
CRA did not say clearly, and I do not have the knowledge to figure out what CRA says. It is better to file the return before Apr 30.
9:00 pm
December 7, 2023
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AltaRed said
I believe the qualification is any* data entry on Schedule 3 is is an 'impacted' T1 return. It does not necessarily mean anything on line 12700 if line 19900 is zero or negative. That said, both a) and b) is correct.From CRA itself
Enter your taxable capital gains (positive amount) from line 19900 of your Schedule 3 on line 12700 of your return. If the amount on line 19900 is negative (net capital loss), do not report it on line 12700 of your 2024 return. Your net capital loss, if any, will appear on your 2024 notice of assessment or reassessment. You can use it to reduce your taxable capital gain in any of the three preceding years or any future year.
* Could be a stock or bond cap gain/loss, or a principal residence sale, or currency forex gain/loss.
Added later: I agree with Norman1 that there is no assumed relief on the T1135 (no reason for relief) and there is no relief for a T1 return that has no entries on Schedule 3.
I also agree to file by April 30th if one has all there information by then. There is no reason to delay filing if one does not have to do so.
your statements are accurate. net capital loss do not report it on line 12700 of your 2024 return.
10:22 am
April 6, 2013
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usephrase said
@Norman1
I do not have much knowledge of investment. I do not understand what CRA website says and what you said.Can you please confirm if the below is correct or not?
I sold stocks and I had Capital gain / loss in 2024, I ( Individuals ) report a capital gain or loss on line 12700 of the 2024 T1 tax return now have until June 2, 2025 to file 2024 return without incurring interest or late-filing penalties.
a) If the return is filed on June 2, 2025, the CRA will grant relief in respect of late-filing penalties and interest.
b) If the return is filed on June 3, 2025, the return will be considered to be 34 days late, CRA will charge me interest for the balance owing ( line 167 or line 48500 of T1 return) for 34 days.
(a) and (b) are correct. However, you don't need to have any gain to put on line 12700 from selling. As AltaRed pointed out, one only needs to have a disposition in 2024 to report on Schedule 3 to have an impacted return.
The word "disposition" is used instead of "sale" to include other ways of getting rid of capital property besides selling. For example, a bond matures and is redeemed by the issuer. That is a disposition and needs to be reported in the "Bonds, debentures, promissory notes, crypto-assets, and …" section. One drops off an old expensive computer (over $1,000) to be recycled. That is a disposition and is reported in the "Personal-use property" section. Six-month old car is stolen and not recovered. A disposition to report in the "Personal-use property" section.
11:16 am
December 7, 2023
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@AltaRed
@Norman1
@NokomisStation
Thank you for your information !! 
7:18 am
October 5, 2017
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It now appears that StudioTax is certified for Netfile for returns with Capital gains as of this morning.
An update to the software is required.
Curious if June 2nd filing date extension still applies now that its both StudioTax is certified for returns with Cap-gains ?
7:35 am
October 27, 2013
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bhuc said
It now appears that StudioTax is certified for Netfile for returns with Capital gains as of this morning.
An update to the software is required.Curious if June 2nd filing date extension still applies now that its both StudioTax is certified for returns with Cap-gains ?
The extension date for 'impacted T1 returns' has been provided to accommodate all the changes that were necessary along the entire chain of activities, including changes in tax slips, changes in CRA programming, issuance of T3 and T508 tax slips by the tens of thousands of issuers, and re-certification of the many tax software packages. The extension is not tax software specific.
There is a chance you won't get your T3 tax slip until as late as April 30th. Hence the filing extension to June 2nd. Note that if you do NOT have any possibility of data entries to Schedule 3, you do not have an 'impacted T1 return' and you do not have a 'free' extension to June 2nd anyway.
9:33 am
March 30, 2017
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AltaRed said
There is a chance you won't get your T3 tax slip until as late as April 30th. Hence the filing extension to June 2nd. Note that if you do NOT have any possibility of data entries to Schedule 3, you do not have an 'impacted T1 return' and you do not have a 'free' extension to June 2nd anyway.
CRA makes it VERY SPECIFIC that those that expects an T3 or have entry in schedule 3 are the only ones that are granted a filing without penalty by Jun 2.
In other words, if you own any ETFs, trust income, capital gain, etc in non registerd accunt, you are required to file by Apr30, or face penalties.
5:47 pm
October 27, 2013
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savemoresaveoften said
CRA makes it VERY SPECIFIC that those that expects an T3 or have entry in schedule 3 are the only ones that are granted a filing without penalty by Jun 2.
In other words, if you own any ETFs, trust income, capital gain, etc in non registerd accunt, you are required to file by Apr30, or face penalties.
T3 tax slips from trusts such as ETFs and mutual funds sometimes contain capital gains in Box 21 and those go on Schedule 3. Naturally that is an issue only for non-registered accounts and the T1 return becomes an 'impacted T1 return' with an extension granted to June 2, 2025.
One issue not addressed is what if none of one's T3 tax slips contain no capital gains AND the taxpayer also does not have any other entries on Schedule 3, e.g. no bonds maturing, no principal residence sale, no USD (including USD money market funds) sold creating a forex gain or loss, etc. Hopefully, everyone will get their T3 tax slips before end of April.
6:31 pm
April 6, 2013
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The T3 Trust return is impacted by the change in implementation date for the 2/3 inclusion of capital gains. But, the T3 slips and T3 information returns are not.
Period 1 and Period 2 reporting of the 2024 capital gains is still required on the T3 slips. So, the T3 slips still need to be issued by March 7 to qualify for relief:
Reporting capital gains (losses) on tax slips
The CRA will not be revising or altering the tax slips that were published in the fall of 2024 or their associated XML specifications and schemas as a result of the update on the Canada Revenue Agency's administration of the proposed capital gains taxation changes.
The instructions on the T3, T4, T4PS, T5, and T5013 slips currently reference the relevant lines on the T1 Schedule 3 or the T1 income tax and benefit return in respect of capital dispositions that occurred in Period 1 (dispositions that occurred prior to June 25, 2024) and Period 2 (dispositions that occurred on or after June 25, 2024).
While the CRA is reverting to the currently enacted capital gains inclusion rate of one-half, we are maintaining Period 1 and Period 2 reporting on the T1 and T3 schedules. Period 1 and Period 2 reporting is being maintained to ensure consistency with the tax slips that have already been published, those currently being issued to taxpayers and those filed with the CRA. As well, the proposed increase to the lifetime capital gains exemption applies starting with capital dispositions in period 2 of qualified farm or fishing property and qualified small business corporation shares.
8:06 pm
April 6, 2013
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Norman1 said
…Period 1 and Period 2 reporting of the 2024 capital gains is still required on the T3 slips. So, the T3 slips still need to be issued by March 7 to qualify for relief:
…
Two errors there. Relief is to March 17 (not March 7) for information returns normally due on February 28.
T3 trust return and T3 info returns are normally due 90 days after the trust's year end. That would be March 31 (not February 28) for trusts with December 31 year end. Consequently, those two trust returns are not covered by the relief to March 17. Instead, impacted trusts have been given relief to May 1 for those two trust returns and the associated T3 slips for those info returns.
No relief for T3 trust return, T3 info return, and T3 slips being late if trust is not impacted.
Don't think Period 1/Period 2 reporting is a big challenge for mutual funds. I already received the T3 slips from three mutual funds that are impacted trusts, before the original March 31 due date.
8:41 pm
October 27, 2013
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For the purposes of this thread, I suspect we should be focusing on T1 tax returns. There are two 'types' of T1 tax returns this (2024) tax year.
1. Impacted T1 returns which will have entries on Schedule 3 of one form or the other and thus have been given an extension to June 2nd to avoid penalties, the penalties of which would be calculated back to May 1st if triggered.
2. T1 returns with no entries on Schedule 3 for which said tax returns are due April 30th as before.
5:04 am
September 7, 2018
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AltaRed said
For the purposes of this thread, I suspect we should be focusing on T1 tax returns. There are two 'types' of T1 tax returns this (2024) tax year.1. Impacted T1 returns which will have entries on Schedule 3 of one form or the other and thus have been given an extension to June 2nd to avoid penalties, the penalties of which would be calculated back to May 1st if triggered.
2. T1 returns with no entries on Schedule 3 for which said tax returns are due April 30th as before.
Perhaps if one is in category 1, and your Capital Gains/Losses are not significant, ignore Schedule 3 and its entries and proceed to file your return by April 30 - and then do a T1 Adjustment on June 2 by completing Schedule 3 entries and submit the T1 Adjustment (to cover the submission of Schedule 3).
6:14 am
March 30, 2017
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canadian.100 said
Perhaps if one is in category 1, and your Capital Gains/Losses are not significant, ignore Schedule 3 and its entries and proceed to file your return by April 30 - and then do a T1 Adjustment on June 2 by completing Schedule 3 entries and submit the T1 Adjustment (to cover the submission of Schedule 3).
I would avoid adjustment as much as I can. Thos are the one that are stuck in limbos for months most likely, and its a pain to communicate with CRA too.
Yes you can submit everything online, but a clean 1 return only is the preferred way to go in my mind. I have done adjustments in the past and it drags on for 1year+ to have it finally sort out and corrected (CRA error not mine).
6:27 am
April 6, 2013
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Should be able to do it right by April 30.
One should be able to separate one's dispositions into Period 1 and Period 2 for Schedule 3. The periods and the need to separate have not changed. What has changed is the inclusion rate for the Period 2 gains. Now, ½ for all Period 2 gains instead of ½ for the first $250,000 and ⅔ for the rest.
T3 slips that break out the Period 1 and Period 2 capital gains are being mailed out now, way before the end of their May 1 relief period.
Many NETFILE tax programs have now been updated and recertified for the updated Period 2 capital gains handling.
7:21 am
October 27, 2013
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I agree there should be no issue getting T3 tax slips by the end of April. My posts have been about which T1 returns have a penalty free extension to June 2nd and which ones do not, i.e. remain due by April 30th.
4:48 am
September 7, 2018
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AltaRed said
I agree there should be no issue getting T3 tax slips by the end of April. My posts have been about which T1 returns have a penalty free extension to June 2nd and which ones do not, i.e. remain due by April 30th.
I finally got through to CRA - they did not give me the impression that "there should be no issue getting all T3 slips....." the reason being some issuers either have not started to prepare T3s or they have already prepared the T3s but they all need to be revised and issued. CRA suggested we use the June 2 date for filing T1s if we are still awaiting T3s. I guess this just another thing the Trudeau govt messed up for us. We had a terrible long wait time getting our Passports a few years ago.
8:40 am
October 27, 2013
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Certainly if one does not have T3 tax slips until late April (as compared to the normal March 31st), then use as much of the extension to June 2nd as one needs to complete one's T1 return and Netfile it.
None of us know yet just how many T3 tax slips will come post-March 31st. Apparently some T3s here and there are now being issued (someone advised TDDI just issued their T3s to some account holders) so it will be a mixed bag as to what 'should' be able to be issued by March 31st and those that will drag on well into April.
Caution: It is quite possible brokerages in particular may issue partial T3 tax slips so be careful to ensure it covers all of one's 'trusts'. One year some years back, I got a T3 tax slip that covered all my ETFs but did not cover a REIT. Another T3 showed up later to cover the REIT.
11:10 am
April 6, 2013
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Trusts that have a December 31, 2024 year end normally have until March 31 to do their T3 returns and T3 slips. We're not even there yet. So, it doesn't matter if some trust haven't even started yet, by March 17. There is no need to recalculate if they haven't started yet.
Even if a trust started, most mutual fund trusts allocate their income, capital gains, and dividends to their investors and don't actually pay any income taxes themselves. Those trusts don't care if the capital gains inclusion rate is ½ or ⅔. ½ or ⅔ of $0 of unallocated capital gains is $0 of taxable of capital gains and $0 income taxes owing. There's no need for such trusts to recalculate their $0 income taxes owing.
1:11 pm
January 7, 2023
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For those who are anxious about their T3 slips, TDDI has just posted mine today on my TDDI account.
10:27 pm
April 6, 2013
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This is the Scotia iTRADE planned tax slip timings from a February 6 letter. The letter is six days after the January 31 announcement to defer the capital gains inclusion rate change from June 25, 2024 to January 1, 2026:
| Slip | Reported by Scotiabank | Reported by Other Firms |
Delivery Date |
|
T5 Relevé 3 (Quebec residents) NR4 for non-residents |
Income related to dividends from stocks, interest and accrued interest from bonds, interest from other debt instruments and cash balances | Interest earned in High Interest Savings Accounts (HISA) | February 28, 2025 |
|
T3 Relevé 16 (Quebec residents) NR4 for non-residents |
Income from income trusts | Income from Mutual funds | March 31, 2025 |
|
T5013 Relevé 15 (Quebec residents) NR4 for non-residents |
Gains and losses and/or distributions within Limited Partnerships | Not applicable | March 31, 2025 |
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