How do I report the amounts from my T5008 slip?
This answer applies to all 2014 returns prepared on or before June 29, 2014, and all 2012 and 2013 returns.
Here are some guidelines for how most people should report these amounts.
- For most Wealthsimple Tax users, a T5008 slip will be related to their investment income (e.g., a T-bill, mutual fund units, or shares). In some circumstances, a T5008 slip may represent business income.
- If the slip was for shares, mutual fund units, or something similar, report the gain or loss in the Capital Gains section.
- Select “Publicly traded shares, mutual fund units, deferral of eligible small business corporations shares, and other shares” from the drop-down menu.
- Use the information from the slip to complete the description field (e.g., T5008 from TD for XYZ).
- Enter the amount in Box 21 as your proceeds of disposition.
- Box 20 shows your adjusted cost base (ACB). Usually, box 20 will be your ACB, however, there are several factors that impact your ACB, and it’s your responsibility to report it correctly.
- The CRA has a helpful page on how to calculate and report your capital gains.
- If you earned interest income on the security, (e.g., the slip is for a T-bill), and you had a gain on the disposition of the security (i.e., box 21 is higher than box 20), you should report the difference as bond interest on line 121 in the Investment Income & Expenses section.
- If you earned interest income, but the disposition resulted in a loss, you should report it in the Capital Gains section using the instructions above.
- If your T5008 represents business income, include the gain or loss in your business income (e.g., T2125, T2121, T2042).
If you need more specific instructions, please contact the CRA or the slip issuer.
This post includes the most common questions we receive about reporting T5008 slips.
How do I complete the mandatory fields in the T5008 section?
Boxes 20 & 21: You’ll need to include both the proceeds (box 21) and your adjusted cost base (ACB) (box 20), even if box 20 is blank. Many T5008 issuers report only the proceeds because they don’t know your ACB. It’s your responsibility to track your ACB and enter the correct amount in box 20. If you aren’t sure, contact your advisor or broker.
Capital or Investment: You’ll also need to indicate if your T5008 slip relates to income that is capital in nature (e.g., shares or mutual funds), or if it relates to income that is investment in nature (e.g., dispositions of mature T-bills).
Exchange rate: If there is a value in box 13 that is not CAD, exchange rate is mandatory. We recommend removing the value from box 13 and reporting boxes 20 and 21 in Canadian dollars.
Do I need to include this T5008 on my return?
If you disposed of a security for a gain/loss you should report this on your return. This applies to gains/losses realized when you sell shares or mutual funds and to income earned when you dispose of securities like mature T-bills.
However, if you disposed of an interest bearing instrument (e.g., a high interest savings account) where you’ve already reported your interest income on your return (e.g., on a T5 slip), you probably don’t need include this T5008 on your return.
If you aren’t sure, you should call your advisor or broker. Unfortunately, we can’t answer this question for you.
Can I use the Capital Gains & Losses section instead?
If you prefer you can report your gain/loss/investment income in the Capitals Gains & Losses and/or Investment Income section (as the case may be).
For capital transactions in particular, many users find it much easier to use the Capital Gains & Losses section than the T5008 section. From a NETFILE perspective there is no difference; exactly the same information will be transmitted to the CRA regardless of where you report it. Just be sure not to report dispositions in both sections.
These transactions are business income, what do I do?
If your slip relates to your business income (e.g., because you are a trader), don’t use the T5008, Capital Gains, or Investment Income section. Instead include your income/loss in the Business Income section.