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Hi!

I am using UFile to prepare my taxes, and will be declaring a gain from a sale of stock. I did not receive a T5008 (probably because the gain was nothing to write home about!). This is the first time I will declare a stock sale. The only other capital gains I have declared in the past have come from income trust distributions (on a T3).

My tax program makes no mention of this form:
http://www.cra-arc.gc.ca/E/pbg/tf/t123/t123-07e.pdf

My question: Do I need to send in this form the first time I declare a capital gain? I found it while reading the really long and boring T4037-09 (http://www.cra-arc.gc.ca/E/pub/tg/t4037/t4037-09e.pdf).

The T123 form comes with a rather ominous warning that: "Once an election is made it may not be revoked". Can anyone suggest a reason why I would not want my current (and future) stocks to be considered capital property?

Thanks!
 

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Do not fill out a T123. That form is for people who have to declare whether their capital gains are capital or income because they are in the business of buying/selling. It's not for ordinary, average investors like us.

Your broker may not have sent a T5008 because he already has given you a transaction statement. Not all brokers give out T5008s. I get a transaction statement from TDW for each buy/sell, which has the same information.

All you have to do-- calculate the ACB and the capital gain you made. Transfer your figures to section 3 on schedule 3. The program should automatically transfer the taxable portion to line 127.
 
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