Log In
Register
Home
Topic RSS
Facebook
Twitter
Email this1:49 pm
April 27, 2014
Offline
Noticed a large error (>$20k) in my T5008.
Called Investorline and they were rather indifferent about the matter.
Didn't want to know what stock was affected, refused to investigate, and said they don't issue amended T5008s.
Tried to get off the hook by saying that CRA does not pay much attention to incorrect Book Values.
I'm concerned that CRA will ask for further information for such a large discrepancy.
Any one else with this problem?
(It has nothing to do with transfers from another account or ROC adjustments)
1:56 pm
March 30, 2017
Offline
My experience is that brokerage in general does a decent job on tracking book cost, regardless if its transferred from another broker, split or consolidation, and other special event.
If you are sure they are wrong and ur record is proper, just use ur own number.
2:20 pm
April 6, 2013
Offline
Differences between the reported T5008 book value and the correct cost of the investment disposed are not unusual. People can buy the same investment through different brokers and accounts. Someone could be exercising employee options and acquiring the same shares of their employer through a dealer over the years. Correct cost of each share disposed is the avearage of the shares bought to date across both the employee stock plan account and the brokerage account.
Yes, CRA may take an interest if there is a large difference. Be prepared to substantiate the correct cost should CRA ask.
Make sure that one's cost is the correct one! With some spinoffs, like the past BCE spinoff of Nortel, part of the original investment cost is allocated to the new shares received and the original investment's cost drops.
4:43 pm
October 27, 2013
Offline
I agree. Cost Basis shown in Box 20 of any T5008 can be considerably off from actual ACBs used by taxpayers for quite a few reasons. At one time, brokerages actually left Box 20 blank (some may still do so) and they should have continued to do so... except I think they may have been coerced by CRA into providing numbers they had on their books because so many taxpayers were clueless in keeping track of their own Cost Basis and failed to do so, creating nightmares for CRA itself. Anecdotally, many of us, as Executors, have had to go to considerable effort to re-construct Cost Basis for estates of the Silent Generation. I had to do that back in the '90s for my father's estate. He had kept track of nothing for Cost Basis.
I have had a number of occasions where my Cost Basis on my own tax return was different from that shown on the T5008. CRA has never queried me on my data (for which I had documentation to support my data). Interestingly, my 2024 tax return has 4 dispositions where the T5008 and my Cost Basis data for each disposition are off thousands of dollars. I do know the reasons why and am ready to explain when or if CRA comes calling sometime in 2025. I don't expect to hear from them.
9:46 pm
September 14, 2022
Offline
I've been doing my taxes for 20 plus years, with a reasonably high number of trades each year and have never used the T5008 to determine my numbers. I actually never even look at it to be honest. I use the issued trading summary, always have my Adjusted Cost Base noted from the previous year for each stock and do all the necessary calculations. Takes me the good part of a day to complete but I never have to question that it's 100% correct. I highly doubt that the T5008 takes into account return of capital adjustments for certain stocks where it's a complicated maze of transactions so no point in using it at all as far as I'm concerned. Strangely I find calculating all that stuff therapeutic in a way.....LOL.
6:23 am
September 11, 2013
Offline
For anyone with regular buys and sells on various securities over years I wouldn't think CRA has a clue what the ACB should be. I have never been questioned on ACB, for anything.
Having said that you do want to do your own calculations from your own records to ensure you're not paying too much tax.
8:18 am
October 27, 2013
Offline
It would be best if brokerages never entered anything into Box 20 (Cost Basis). That is the only reference point for CRA in the first place.
9:20 am
April 27, 2014
Offline
Tracked down two sources of error, but there is still a small discrepancy:
1. In order to trigger a capital gain, I completely sold then bought back a stock the same day. Instead, Investorline treated it as if I had first BOUGHT, then SOLD. This would have the effect of averaging out the ACBs of the two purchases, rather than using the ACB of the new purchase only. (eg. old purchase @ $8, sold @ $10, new purchase @ $10 ==> ACB should be $10, instead they state ($8+$10)/2= $9).
2. Assume T5008s are calculated at year end, so brokers would not even have received ROCs for T3s. For Investorline noticed that this is not corrected until March statement.
9:42 am
October 27, 2013
Offline
Both of those can result in incorrect Cost Basis at brokerages for reasons as you noted. It is the taxpayer's responsibility to use the properly calculated Cost Basis.
So can spinoffs like Norman1 posted, and especially so for foreign spinoffs where one can take a Section 86.1 election to choose form of Cost Basis of the spinoff (the brokerage would have no idea what the taxpayer has done).
So too when journaling between CAD and USD accounts where brokerages consistently foul up forex rate in the journal (hint: Ones' Cost Basis never changes on a CAD equivalent basis).
Please write your comments in the forum.