T5008

The T5008, Statement of Securities Transactions, is issued by investment dealers and some other intermediaries when securities are sold or redeemed in a non-registered account. It reports the proceeds of disposition so that the CRA can verify that capital gains and losses were reported. Brokerages may issue an annual summary or trading record instead of individual paper slips.

KEY BOXES

• Box 15, Type code of securities.

• Box 16, Quantity of securities.

• Box 17, Identification of securities.

• Box 20, Cost or book value: often blank or unreliable, especially for securities transferred in from another institution.

• Box 21, Proceeds of disposition or settlement amount.

• Box 22, Currency code.

CALCULATING THE GAIN OR LOSS

• Capital gain or loss proceeds of disposition minus adjusted cost base minus outlays and expenses (such as commissions).

• Adjusted cost base: for identical securities bought at different times, ACB is the weighted average cost of all units held, including reinvested distributions and adjusted for return of capital.

• Foreign currency: both cost and proceeds are converted to Canadian dollars at the exchange rate on each transaction date (or a Bank of Canada average where acceptable).

• Report each disposition on Schedule 3; half of the net gain is the taxable capital gain on line 12700.

SUPERFICIAL LOSSES

A loss is denied if the same or identical property is acquired by the taxpayer or an affiliated person (including a spouse, or the taxpayer's RRSP or TFSA) in the period from 30 days before to 30 days after the sale, and is still held 30 days after the sale. The denied loss is added to the ACB of the repurchased property.