Netfile/capital gains problem?? | Page 4 | Income tax filing | Discussion forum

As I understand it, any entry to Schedule 3 qualifies the T1 as an 'impacted' return. So yes.

"March 21, 2025
Ottawa, Ontario
Today, Prime Minister Carney announced that the Government of Canada will cancel the proposed hike in the capital gains inclusion rate. Cancelling the increase of the capital gains inclusion rate is a recognition of the vital role that builders and small businesses play in shaping Canada’s future."

I just read the above news clip. Does it mean the proposed changes to the capital gains, which we were discussing above till April 8, 2025, were already cancelled on March 21, 2025?
Is this the same Impacted returns of capital gains or the above news is about something else? So the forms now will be again for 1 full year and NOT like the 2 periods which we had to report on our returns? I have not yet submitted my impacted return.

Bill said
zgic, yes, nothing new. Report 2024 capital dispositions as usual, as in previous years.  

Not quite. Most tax slips will still contain a Box 52 and a Box 53 for pre-June 24th and post-June 24th cap gains, the total of which equals Box 21. At least some, if not all, tax software Schedule 3s contain the 2 separate periods to be populated. What Schedule 3 then does is at the bottom, it simply adds the two periods together, and applies 50% to the total.

So no, entries to Schedule 3 are different from before in most, if not all, cases, but the result is the same as it was before all this nonsense out of JT's reign.

Yes. The form still shows 2 periods, even after the it says:

Capital Gains
On March 21, 2025, the Government of Canada announced that it:
does not intend to proceed with a proposed increase to the capital gains inclusion rate;

It should have been amended by now as it is more than a month.

Thanks AltaRed & Bill.
@AltaRed/Bill: I am ready with my return but have not yet filed. I have to pay 14K in income taxes. I have filled my Schedule 3 in 2 parts. (Impacted T1)
So if I file now do I have to pay my taxes owed by 30 April Or can I wait till end of May to pay my balance?
The other option would be to file End of May and pay balance then.
Thanks for any inputs here from anyone.

I had a lot of taxes to pay too, could have waited until June 2 but didn't, filed and paid last week.

I'd probably file and pay at the same time, just to be sure, though I don't believe you have to, i.e. you could file now and pay by end of May and be ok, as far as I know.

CRA site says "The CRA will grant relief in respect of late-filing penalties and arrears interest until June 2, 2025, for impacted T1 Individual filers". That wording suggests it isn't a condition for arrears payment relief that the return is filed at the same time. At least to my eyes.

I was asked if receiving a T5008 slip is the same as a having an entry in Schedule 3, making it an 'impacted' return. I believe the answer is yes.

Receiving a T5008 slip does not necessarily mean there will be an entry in Schedule 3 and that the return is an "impacted" return.

A T5008 slip just means there has been a security transaction. CRA: T5008 Statement of Securities Transactions… has this explanation:

This information slip reports the amount paid or credited to you for securities you disposed of or redeemed during the year. These transactions may be on account of income or capital. For more information, see Interpretation Bulletin IT-479, Transactions in Securities.

If you are an individual having to file a T1 return, report transactions on account of capital on Schedule 3. You can report transactions on account of income as either business income (line 13500 of your income tax return) or, for debt obligations in bearer form, as investment income (line 12100 of your income tax return).

…

There shouldn't be a T5008 slip for selling "units" of a brokerage ISA. There's really no trust and no trust units being sold as one is withdrawing from a deposit account.

There would be T5008 slip for selling units of a MMF. There is actually a mutual fund trust and units of that trust are being sold. That disposition does need to be reported.

People tend to use the Cost Basis presented by some brokerages but they do not warrant accuracy. That responsibility is on the individual keeping their own records. Some brokerages refuse to post Cost Basis for that very reason. Brokerages cannot know if you have the same currency elsewhere, they cannot know the Cost Basis of a transferred in security except by the client saying what it is, and they clearly do not handle CAD equivalent of USD based securities at all (most will not post USD transactions in CAD equivalent for that reason).

I have submitted many transactions to CRA on Schedule 3 that do not have the same Cost Basis as the T5008 because I know my records are right and the brokerage Cost Basis is wrong. This is particularly true in special elections of spin offs when the taxpayer can elect to carry over the relevant Cost Basis of the spinoff portion, or keep the Cost Basis with the original stock of the Corp. The brokerage cannot know what the taxpayer has done.

You are not doing your USD conversions correctly for capital (Schedule 3) transactions. There is no such thing as an annual average forex rate for capital transactions. The forex to be used is the one that is effect on the actual date of transaction (or date of settlement if one so chooses). There will always be one forex rate based on the day (days) of acquisition of the security and another forex rate based on the date of sale (or date of settlement) of the transaction. Annual forex rates never apply to capital sales.

Annual forex rate only comes into play for 'recurring investment income', i.e. distributions and dividends collected throughout the tax year. All this is very clear in the Capital Gains guide. I don't know how your brokerage handled the Renaissance USD ISA on your T5008 because there are a number of possibilities. It is appropriate though for it to be on a T5008 because it is USD and there will be forex rate changes between dates of acquisition and date of sale. IOW, there will always be a capital gain or a capital loss on USD transactions just because of forex rate changes.