FAQ with regards to reporting T5008 slips:

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‍How do I complete the mandatory fields in the T5008 section?

Boxes 20 & 21: You will need to provide both the proceeds (Box 21) and your (Box 21) and your adjusted cost base (ACB) (box 20) regardless if box 20 is blank. It is ultimately your responsibility to keep track of your ACB and report the correct amount in box 20 because many t5008 issuers do not know your ACB and can only report the proceeds (box 21). However, if you are still unsure, please contact your advisor or broker for further assistance.

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Capital or Investment: You are also required to specify whether your T5008 slip pertains to income that is capital in nature  (e.g. stocks or shares in a mutual fund) or investment in nature (e.g. dividends or interest payments). 

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Exchange rate: An exchange rate is mandatory if the value in box 13 is not measured in Canadian dollars (CAD). Instead, we suggest removing that value and reporting boxes 20 and 21 in CAD. 

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Do I need to include the T5008 on my tax return?

When you sell a security such as shares or mutual funds and realize gains or losses, you should report this on your tax return. In addition, this applies to income that is earned via disposing of securities such as mature T-bills or T-notes. 

If you disposed of an interest yielding tool (e.g. high interest savings account), and reported your interest income (e.g. on a T5 slip), you likely won’t have to include this on your T5008 return. However, if you are still unsure, please contact your advisor or broker to determine exactly what you are required to do.

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Can I use the Capital Gains & Losses section instead?

Yes, you can report your gain/loss/investment income in the Capitals Gains & Losses and/or Investment Income section (as the case may be).

Many users do find it simpler to use the Capital Gains & Losses section than the T5008 section, specifically for capital transactions. There is no inherent difference from a NETFILE perspective because the same information will be reported to the CRA. Please just ensure that you do not report dispositions in both sections.

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What do I do if these transactions are business income?

If your slip pertains to income that is business related such as day-trading, report your income/loss in the Business Income section instead of the T5008, Capital Gains, or Investment Income section.