# Mutual funds - tax slips



## Saniokca (Sep 5, 2009)

I have a question about the TDB972 (TD DIVIDEND GROWTH - I). My wife owns this in an unregistered account and it paid some dividends in 2012 which were reinvested. Should she be getting a tax slip from Questrade? I was trying to find it on their website but doesn't look like there were any slips for 2010 or 2011. Why is that?

On another note, it also says "this security can no longer be quoted or traded" and that we are supposed to call them to settle it (meanwhile it still paid and reinvested the dividend today). Does anyone know what that means? I keep putting of calling them b/c of the time difference between Ontario and BC...

Thanks!


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## Squash500 (May 16, 2009)

Saniokca said:


> I have a question about the TDB972 (TD DIVIDEND GROWTH - I). My wife owns this in an unregistered account and it paid some dividends in 2012 which were reinvested. Should she be getting a tax slip from Questrade? I was trying to find it on their website but doesn't look like there were any slips for 2010 or 2011. Why is that?
> 
> On another note, it also says "this security can no longer be quoted or traded" and that we are supposed to call them to settle it (meanwhile it still paid and reinvested the dividend today). Does anyone know what that means? I keep putting of calling them b/c of the time difference between Ontario and BC...
> 
> Thanks!


I haven't invested in mutual funds for years (I've totally converted to ETFS) but I think that it's TD Asset managements responsibility to provide your wife with a T3 tax slip and not Questrade's responsibiity at all. I would call TD asset management right now (I believe their 1 800 number is open 24 hours) and find out for sure? You can also ask the TD rep at the same time if TD mutual funds still deal with questrade as a broker.


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## Ponderling (Mar 1, 2013)

They come out later than other tax related forms, for some reason. I just got one of my non registered holdings T3's last week. I dug out my notice of ready by when letter from the pending filing stack, and yes, they said they had until end of March to produce it. The statement came from my brockerage. 

I filed over a month ago, so obviously I will be doing a supplimental payment when the CRA contacts me.

I just got supplimental notice for a missed 2011 filing of non regisitered income three weeks ago. I do not recall getting any broker notce of this, but aI was transitioing brokers at the time, and so it might have been missplaced by them or me. 

The holdings and payouts form the CRA sent along as documentation for taxes owing was generated by the fund company, and sent directly to the CRA

The 'nice' thing is that now you can pay taxes owing using online banking, So the hassle of an added mailing is at least eliminated. $66 sent on as paid while I otherwise paid the natural gas bill.


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## stardancer (Apr 26, 2009)

I have that fund and actually received my T3 early. TD Asset Management sends it out, so call them. They do have until 31 March to send it out, so maybe I was at the top of the mailing list. In other years, I have had to wait until about 2 weeeks into April.


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## Eclectic12 (Oct 20, 2010)

Squash500 said:


> I haven't invested in mutual funds for years (I've totally converted to ETFS) but I think that it's TD Asset managements responsibility to provide your wife with a T3 tax slip and not Questrade's responsibiity at all...


Odd ... all of my T3's come from the broker, whenever the company such as iShares, split share stock etc. report to them the numbers. If a bunch report at around the same time, I get a summary document that breaks down the T3 totals by each payment.

Using iShares and a REIT as an example, the T3 will total both and the summary document will identify iShares paid $X where $Y was RoC, $Z was dividends where the REIT paid $A, made up of $B foreign income, $C income, $D dividends.


Cheers


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## AltaRed (Jun 8, 2009)

Mutual fund companies issue T3s directly to the taxpayer while ETFs, REITs, etc. have them issued through the broker.


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## Eclectic12 (Oct 20, 2010)

AltaRed said:


> Mutual fund companies issue T3s directly to the taxpayer while ETFs, REITs, etc. have them issued through the broker.


It's a good thing I didn't have any MFs in a taxable account then. I much prefer the "one stop shopping" of the broker's web site. :biggrin:


Cheers


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## AltaRed (Jun 8, 2009)

It is not a big deal for the 2-5 mutual funds a typical investor might own. One just has to remember to include the tax slip information on one's Schedule 4 of their tax return. 

Mutual fund companies only issue tax slips IF there is income or ROC to be reported. Generally speaking, if an investor did not receive a distribution (re-invested or otherwise) in 2012 from a mutual fund, there would be no T3 for that fund.


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## Eclectic12 (Oct 20, 2010)

AltaRed said:


> It is not a big deal for the 2-5 mutual funds a typical investor might own. One just has to remember to include the tax slip information on one's Schedule 4 of their tax return...


Hmmm ... most of those I'm talking to who has MFs have more than five.

In any case ... I still prefer one source of the forms instead of multiple sources.




AltaRed said:


> ... Mutual fund companies only issue tax slips IF there is income or ROC to be reported. Generally speaking, if an investor did not receive a distribution (re-invested or otherwise) in 2012 from a mutual fund, there would be no T3 for that fund.


Are there any that don't have a distribution? 

Or maybe a better question is who would hold onto a MF that wasn't paying distributions in the entire year?


Cheers


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## AltaRed (Jun 8, 2009)

A good many equity dominated mutual funds do not have any distribution, especially those focused on growth with holdings typically at the low end of income generation (low internal income generation is eaten up by MER expenses). Not everyone holds mutual funds for income generation. 

This is off topic and should be discussed elsewhere, but regarding number of mutual funds, a couch potato investor would have perhaps 4 index mutual funds (e.g. one each of Cdn/US/Int'l equity, and one Cdn bond fund). Those focused only on Canada and relatively conservative can get by with ONE balanced/income fund. Those who have been 'sold' actively managed mutual funds might have 6-10 particularly if they have wandered off into some specialty mutual funds such as precious metals or resources.


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## dogleg (Feb 5, 2010)

My wife has a CIBC Monthly Income Fund which she has held for a long time in an unregistered account. In Sept./12 she sold some units. At that time the book value was 66 cents below the unit value. How is that 'realized gain' -if that is the right term- used to calculate the tax on the sale?


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## Guban (Jul 5, 2011)

dogleg said:


> My wife has a CIBC Monthly Income Fund which she has held for a long time in an unregistered account. In Sept./12 she sold some units. At that time the book value was 66 cents below the unit value. How is that 'realized gain' -if that is the right term- used to calculate the tax on the sale?


Have her fill out schedule 3, section 3 for mutual funds to report her capital gain. See:
http://www.cra-arc.gc.ca/E/pbg/tf/5000-s3/5000-s3-12e.pdf


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## AltaRed (Jun 8, 2009)

dogleg said:


> My wife has a CIBC Monthly Income Fund which she has held for a long time in an unregistered account. In Sept./12 she sold some units. At that time the book value was 66 cents below the unit value. How is that 'realized gain' -if that is the right term- used to calculate the tax on the sale?


Not only what Guban said, but I presume your wife has been keeping track of the ACB of her monthly income fund over the full period of time, and made any ACB adjustments (downward) that may have been necessary for the years in which there was Box 42 (Return of Capital) on her annual T3 slips. CIBC is NOT responsible for keeping track of her ACB and therefore the 'book value' CIBC has on their records may in no way reflect the true ACB of that fund.


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## dogleg (Feb 5, 2010)

Alta...: Interesting. Her accountant has been doing her returns forever and the question of ACB has never come up as far as I know. So there must be a way for him to evaluate it year by year and apply it when sales occur. Unless I misinterpreted the person from Investors Edge he suggested the data on the T3 was sufficient to get the needed tax info. He added, thousands of investors have long ago lost track of their original purchase info. and that is why the slips have the needed data on them every year. If he is wrong we might be in for a big surprise.


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## AltaRed (Jun 8, 2009)

dogleg said:


> Alta...: Interesting. Her accountant has been doing her returns forever and the question of ACB has never come up as far as I know. So there must be a way for him to evaluate it year by year and apply it when sales occur. Unless I misinterpreted the person from Investors Edge he suggested the data on the T3 was sufficient to get the needed tax info. He added, thousands of investors have long ago lost track of their original purchase info. and that is why the slips have the needed data on them every year. If he is wrong we might be in for a big surprise.


If she has all of her T3 slips over the years and her original purchase price, then yes, she has all the information needed to back-calculate ACB. It is just most people misplace their T3 slips over the years and Box 42 ROC information gets lost. Best to put all this on a spreadsheet on an annual basis as the T3 slips come in (or as I do, in Quicken). I am not aware of virtually anyone who has kept all their T3 slips for the past 20-30 years (or longer). 

Note: In actuality, it could be more complicated than that for people owning mutual funds before the Feb 1994 budget, but that is another issue.


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## dogleg (Feb 5, 2010)

Alta...: Thanks again. And what happens to the throng of miscreants who couldn't find their account history if their life depended on it? Somewhere I guess there is a trail of all activity for any fund. But where to go ?? I will contact CIBC and ask them about it .


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## TomF (Jul 26, 2011)

Saniokca said:


> . . . I keep putting of calling them b/c of the time difference between Ontario and BC...
> . . .


Make the phone call. You won't know for sure until you do.

I know different brokerages have different policies for dealing with reporting.
I think it used to be that banks would not send a T3 or T5 slip unless you made more than $50 in a year. Then it changed to $25.

TD GreenLine hasn't sent me slips for several years, though my holdings there are small. Not since I moved everything online.
InvestDirect at HSBC reports _any_ amount, no matter how small. For example, this year they sent me T3 slips for two small earnings:

$1.89 from my holdings in their HSBC Canadian Money Market Fund
$0.12 from my holdings in their HSBC US Dollar Money Market Fund (Seriously: 12 cents!)

It is hard enough to save money. If I can make 12 cents in a year you'd think the bank would just let me enjoy it. I am sure the cost of the paper, envelope, and stamp were more than 12 cents.

Over the years I have drastically reduced my business with HSBC, and this ankle-biting, government-lackey attitude they have just further motivates me to continue reducing my business with HSBC.

Hopefully, the experiences with your broker are better.


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## AltaRed (Jun 8, 2009)

dogleg said:


> Alta...: Thanks again. And what happens to the throng of miscreants who couldn't find their account history if their life depended on it? Somewhere I guess there is a trail of all activity for any fund. But where to go ?? I will contact CIBC and ask them about it .


The mutual fund company should have a record, if not specifically for each investor's holdings going back forever, at least on a per unit basis which then allows an investor to use their calculator.


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## dogleg (Feb 5, 2010)

Alta...: I believe I finally got what I needed. I called back to Investors Edge . This time I got someone who seemed to know what he was doing. Anyway he gave me the ACB for the units sold last Sept. I asked him if his data went back to the start date of her fund which was with Dominion Securities. He said it did but he didn't sound too convincing. Maybe I should contact RBC to be sure. I'll let you know how I make out. Thank you for your input.


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