T5008 Slip – Statement of Securities Transactions

You or someone on your behalf will get a T5008: Statement of Securities Transactions Slip from your broker. This slip lists all the securities that you, or someone on your behalf, bought, sold, or cashed in during the year. In your case, the T5008 slip could include any of these:

• Bonds, debentures, promissory notes, and other similar things.
• Shares and mutual fund units that can be purchased and traded on the open market.
• A small business corporation’s shares and other shares can be put off for a certain time.
• At maturity, T-bills can be sold.

The figures on your T5008 slip may be more than simply money. If you cancel, trade, or convert your securities into property, the value of the property will be included in your slip even if it was not in cash. Include every consideration that has been paid or is due to you. 

Understanding Your T5008 Securities Transactions Slip Statement

When you get your T5008 slip, you’ll see that it contains boxes similar to the T4 slip. What those boxes signify is as follows:

• Box 14: The date on which your securities transactions happened, which should be December 31 if you are reporting multiple transactions.
• Box 16: The total amount of security that was disposed of
• Box 17: A description of the security; if there are many securities, this may be included in Box 21.
• Box 20: The cost or value of the book. This is not always your adjusted cost basis (ACB), for which you are liable (although your broker or advisor should be able to advise you of this amount). If your broker leaves this field blank, you are still responsible for calculating and reporting it.
• Box 21: If you choose to report on a per-security basis, this section may be used to specify the amount collected from each security.

An adjusted base cost is the sum of the acquisition cost and any associated charges, such as a broker’s fee. It excludes current expenses, such as those associated with operating your firm.

I put money in box 20 or box 21, and I reported capital gains.

It is important to write down the costs you paid to get rid of or sell your securities this year. These expenses can be taken out of your capital gain or loss when you figure out how much money you made or deducted when you sell something. The types of expenses that can be deducted are as follows:

• Charges for searching
• commissions
• Brokers charge fees for their services.
• Fees for surveyors
• Lawyers charge fees for their time and work.
• Transfer taxes and fees.
• Advertising is a cost.

What does Box 20 represent on my T5008/Relevé 18 tax slip?

Box 20 represents the cost or book value of a security (or debt instrument) that is available on our system at the amount. It reflects the total amount that was paid to buy a security. If the security is linked to a company, this usually includes adjustments for fees, reinvested dividends, returns of capital, and certain corporate changes that are related to it.

In some cases, tax reporting may not be able to use the book value shown in Box 20 of your T5008/Relevé 18 and adjustments may be made. It could be that the book value shown in Box 20 comes from the company that transferred the security to CIBC Investor’s Edge. If the security wasn’t bought through CIBC Investor’s Edge, they’ll use the information that the company has given them. The value in Box 20 may be based on how much security was worth on the day it was transferred in.

The adjusted cost base (ACB) may need to be changed if you use electronic slips from your online Canada Revenue Agency/Revenu Québec account. Please check with your tax advisor to see if the amount in Box 20 is correct and if you need to make any changes based on your situation. 

Is T5 the same as T5008 Slip Statement of Securities Transactions?

The answer is “no.” A T5 isn’t the same as a T5008 Slip. A T5008 slip shows how you bought and sold securities. A “T5” is a statement that shows how much money you made from your transactions. The income you earn from your investments is called “investment income.” Only money from investments that isn’t in a tax-deferred account can be called investment income. On your T1 form, you have to write down both of your sources of income.

It’s important to note that these two slips may be related to each other. They might show the same income, so if you report them both, you might report the same income twice. You should talk to the people who gave you the slips to find out what you need to report.

Should I report T5008?

There is a tax form called T5008 that people need to fill out and put on their tax returns. In your income tax and benefits return, you should include the information that was asked for. It’s important to make sure that you haven’t already included this income in other parts of the T1 return, or you’ll be taxed on the income twice. Suppose your T5008 slip is about your business income. In this situation, you can put it in the “Business Income” section of the T1 and not the “Capital Gains and Losses” section.

It’s important to note that if you use information from your T5008 on your tax return, you need to put the amount in Canadian money. You need to use the exchange rate in Box 13 of your T5008 to figure out how many Canadian dollars you need to report.

An error on your T5008 slips can be fixed later. You can have them changed and correct the error with the Canada Revenue Agency (CRA).

Some platforms make it easy for you to keep track of your investment earnings. However, if you’re feeling a little overwhelmed, think about them. You can get unlimited help and advice as you do your taxes, as well as a final check before you send them in. Search for and choose those platforms. Then, have one of their tax experts do your return from start to finish.