T-slips and CRA | Page 4 | Income tax filing | Discussion forum

Norman1 said
Yes.

It was 50% inclusion for Period 1. For Period 2, it was 50% inclusion of first $250,000 and 2/3 of rest.

Then, it was 50% for both Period 1 and Period 2. The 50% of first $250,000 and 2/3 of rest would start January 1, 2025 instead start of Period 2 (June 25, 2024).

I think now it is 50% for Period 1, Period 2, and after.

Regardless, one still needs to split the capital gains/losses between Period 1 and Period 2 for the 2024 tax year.  

My FIs does not break down the T5008 for period 1 vs 2. Its probably ok to report everything under period 1 only. The importance in my mind is not formality but rather CRA gets every penny it wants..

Norman1 said
There are no extra boxes on the 2024 T5008 slip, like there are with the T3 and T5 slips.

One can use T5008 slip Box 14, with the date (MMDD), to determine the correct period to report the transaction in.  

Ufile automatically puts the disposition into the right section of Schedule 3 based on reported disposition date. I would think most tax software would do that.

You don't get a T5008 for REI.UN unless you sold it. You rightfully got a T3 for recurring investment income.

The T3s I have received have a number in Box 21 for capital gains BUT the T3 slip also has Box 52 and Box 53 numbers. The addition of Boxes 52 and 53 = Box 21. Box 52 is the amount for pre-June 25th and Box 53 is the amount for June 25th and later, so you put the Box 52 number in Box 21 in Ufile pre-June 25th and Box 53 number in Box 21 in Ufile June 25th or later.

If your T3 does not split it out, then go to your Summary of Income that accompanies the T3 which breaks the distributions by month. You can the sort out how to split Box 21. If you have no Summary that accompanies the T3, you can go to the RioCan website and get the distributions by month there.

Failing all that, simply split it 6/12ths pre-June 25th and 6/12ths post June 25th or later.... or something like that. It makes no difference to the tax calculation.

AltaRed and Norman1, thank you very much for setting me on the right path to resolve my T3 issue. Once again, you gents have provided the light I needed. The information was right in front me. Your guidance has provided me the switch to turn that light on. I hate to admit it but Income Tax stuff intimidates me.

I burned a little midnight oil last night and resolved the issue. The T3 I received does not have Box 52 and Box 53 included. I flipped it over and those Boxes are listed on the back. There would have been no issue if the broker had used them on the front too. For the record, there was no Summary of Income included with the T3. Also, there were no changes to the number of shares throughout the year.

I had the Riocan Statement of Trust Income Allocations and Distributions form and found the allocation for Capital Gains was consistently 18.70702% of the distribution. Riocan pays a dividend every month. I used the February through July payments to calculate the Box 52 entry and August through January for the Box 53 entry. The sum of those two boxes adds up to the Box 21 entry. Problem solved.

I didn't get to read Norman1's response until this morning but he has confirmed that this is the correct solution. Norman, thank you for your effort to produce the tables and other information.

We are so lucky to have you guys on our team.

Norman1 said

It is the February to June distributions that are in Period 1.

The July distribution was declared and allocated to the beneficiaries June 28. That is four days after June 24, the last day of Period 1. So, the capital gains in the July distribution are for Period 2.  

Norman1, thanks for pointing that out. I stand to be corrected on this but I think we are on the same page here. I didn't use the 'declaration' date for my calculations. Instead I used the dates I received the dividends - which is the information in my records. Payout is on or close to the 7th day of each month. Payment on those dates are for the previous month's distribution which would have a declaration date near the end of the month previous to that. So the 'payment' received on July 7 would be for the June distribution that, using your reference, the declaration date being the 28th of May. Most of the July 'payment' would be for the period before June 24. I don't think it is necessary to break this down by days so I allocated the entire June amount to Box 52.
6 months of payments go to that box and 6 go to box 53. That accounts for all the dividends 'declared' and received for 2024.

It won't surprise me if I have any of this wrong. I appreciate your efforts to keep me on the straight and narrow with the CRA.

Don't think iShares S&P/TSX Capped Financials Index ETF (XFN) and iShares S&P/TSX 60 Index ETF (XIU) distributed any capital gains in 2024.

See 2024 Distribution Characteristics in the BlackRock Tax Information Centre.

There were distributions of capital (return of capital) that would have to be appropriately allocated into Period 1 and Period 2 after the cost base of the units is $0 or becomes $0 from the return of capital.

Is the deadline for financial institutions to file T3's still March 31st? Since it is now April 17th, we should all have our T3's by now. Yes?

Most of my slips are absent from my CRA account as well.

T5008 slips from the brokerages are there. But, the T5 slips from those same brokerages aren't. Many other T5 slips I have since received in the mail are not there.

Only one of the T3 slips that arrived by mail is shown on online at CRA.

UkrainianDude said
Make an appointment with your MP office and let them know your concerns. That’s what I did. The CRA should do its job in timely manner.  

All of the current bunch would have to be fired and replaced.