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Discussion Starter #1
This will be a rather dumb question ...

I never had to report anything tax-related to my investment before and I am just wondering how I know the amount of capital gain / loss / dividend / etc that I earn / loss and need to report. Do we get T5 or something like that?

Thanks in advance!
 

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Discussion Starter #3
thanks FT,

could you give an example how to report capital gain / losses ... how do we calculate it since we possibly buy various amount of the securities over time with different prices, and we might sell it over time with different prices too.

eg. let say you buy 100 units of stock X at $5, and then you buy another 50 units at $6. Then you sell 40 units at $8, and then you sell 90 units at $9. How do you calculate the gains / losses? Is it totally up to you to calculate it?

ie. it would be more advantageous to use the higher price bought and lower price sold to report gain as much as possible (hence "smaller" gain), while the other way around if there were loss to get "bigger" loss?

Also, wouldnt this be a bit of nightmare to keep track if you buy the units over time over many transactions? and if you hold the units for let say 10-15 years, you need to keep track of all the transaction history then?

Thanks!
 

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Your incomes from investing are reported on schedules 3 and 4 . Look at the pkg you just received for their layout. The capital gains layout includes only one line, so obviously they expect you to include your own list of every security sold, according to that layout's columns. I use a simple Excel file.

As said, you will get slips for interest and dividends. You must calculate the capital gains yourself. The proceeds from sales $$ is easy enough (includes cost of selling). The ACB Adjusted Cost Base of the shares sold may be more complicated. See discussion for all the different issues that can effect the ACB. The ACB of what you sell is the $$ you take out of the running total on the remaining.

Far easier to keep track of the sales at the time you make them during the year.

While not make this year the one where you do your tax return on paper with a pencil? You don't learn 'HOW' to do your tax return before you do it. You learn how BY doing it. Look at the big sections and see how the totals work together. Read the descriptions for each line item. Don't just ignore everything not immediately relevant. Remember where things are for later in life when it will be relevant. You will see the dividend and capital gains items and the section of the booklet you can go to for greater directions.
 

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All the above is correct. You'll get T5 slips mailed to you for interest and dividend income for instance.

But for capital gains and losses, it's true that its up to you to calculate and report. I would also recommend reading through the capital gains guide from the CRA. It will give you some basic examples of how to calculate. http://www.cra-arc.gc.ca/E/pub/tg/t4037/README.html

The schedules 3 and 4 that leslie mentions above are here:
http://www.cra-arc.gc.ca/E/pbg/tf/5000-s3/README.html
http://www.cra-arc.gc.ca/E/pbg/tf/5000-s4-5/README.html
 
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