# T5008 Has Error?



## Ess (Mar 8, 2017)

I have a T5008 slip reported on my online CRA account (although I have not received one in the mail), from my non-registered investment account with Renaissance Inv. In box 21, there is a reported Proceed/Settlement of $5500. On my Renaissance online account this $5500 is listed as a redemption. In reality, it was a removal of these funds from this non-registered account and a transfer of them into my TFSA, and I incurred a $120 loss for doing so. It was not really a redemption. 

When I enter box 21 ($5500) into Turbo Tax for the T5008 form, it is counted as income. Therefore, my final tax refund is significantly reduced. 

How do I fix this problem? Do I ignore the T5008 (I know I can't really ignore an official statement)? Do I talk to Renaissance? Is there another form I have to fill out?

Thanks for your help,
Ess


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## AltaRed (Jun 8, 2009)

The T5008 does not include acquisition cost...... so you have to enter that on your own on Schedule 3. Given you said you incurred a $120 loss, I am assuming your acquisition cost was $5620. BUT... you cannot claim a loss for 'in kind' transfers to your TFSA. IOW, you cannot claim the $120 (superficial) loss.


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## Ess (Mar 8, 2017)

Thanks for the reply AltaRed. That makes sense.

So can I not include the T5008 in my return and just go with the T3?


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## AltaRed (Jun 8, 2009)

Ess said:


> Thanks for the reply AltaRed. That makes sense.
> 
> So can I not include the T5008 in my return and just go with the T3?


Well, I believe you have to show the capital disposition on Schedule 3, but without a loss. Not precisely sure how that is done due to 'in kind' transfers since I've never done that. Someone else can respond. 

Your T3 is a separate matter all together - it shows the income you received from the investment and that goes on Schedule 4 regardless.

P.S. In the future, be aware of superficial losses. You might have been better off to select a different investment that had a capital gain instead for transferring into your TFSA. Same issue applies for RRSPs.


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## Eclectic12 (Oct 20, 2010)

AltaRed said:


> Well, I believe you have to show the capital disposition on Schedule 3, but without a loss. Not precisely sure how that is done due to 'in kind' transfers since I've never done that. Someone else can respond.


The difference for me is that my transfer of stock "in-kind" to my TFSA was a small capital gain, as I had spent time researching the implications as well as my broker's process in advance. 

I plugged into Schedule 3, Part 3 "Publicly traded shares, MF units ... " the usual items from my stock cost tracking spreadsheet. The difference from what I would have done with a run of the mill stock sale was that the "proceeds" number came from my notes of the phone call to make the transfer (i.e. the price per share set for during the phone conversation for the trasnfer). 

I had also cross-checked the monthly line item of this transaction to make sure the price per share matched the total number on the monthly statement. For example, monthly statement said 200 shares worth $2600 were transferred into the TFSA so I did the math to figure out that this was $13 a share then checked my notes from the phone call to request the transfer that also said $13 a share was the transfer price.


When I was using paper forms, if I was in the OP's superifical loss situation - I would have filled out schedule 3, part 3 with the correct numbers but put in the "Capital Gain (or Loss)" column a zero then attached a note that this was a superficial loss. Now that I use tax software, the program calculates the capital gain so the only way to end up with a zero capital gain that I can think of is to put a bogus cost base that matches the proceeds.

For example, if the cost was $5620 with a proceeds of $5500 - plug into Schedule 3, Part 3 a cost of $5500 with proceeds of $5500 as well as $0 Outlays. Keep good notes in case CRA asks about it.

I suppose one could plug in the real cost and let CRA find it but I'd rather do it correctly in the first place and have documentation to back up why it is correct.

*Edit:*
I prefer to do it correctly as IMO it reduces work for any re-adjustments as well as the chance of penalties/interest that having CRA find it introduces.




AltaRed said:


> ... P.S. In the future, be aware of superficial losses. You might have been better off to select a different investment that had a capital gain instead for transferring into your TFSA. Same issue applies for RRSPs.


A transfer in-kind to a registered account with a capital gain (preferably small) IMO is the best solution. 

If that is not possible or preferred, one can still preserve the capital loss by:
a) sell for cash
b) transfer cash into registered account
c) wait 30+ days to re-buy the same investment or buy a similar investment immediately (ex. sell TD bank then when the cash is in the TFSA, buy Royal Bank).


Where one is aware of the range of options - the chances of regretting the choice made are reduced IMO.


Cheers

*PS*
For more info ....
http://www.taxtips.ca/personaltax/investing/transfersharestorrsp.htm
http://www.taxtips.ca/personaltax/investing/taxtreatment/shares.htm#superficialloss


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## gardner (Feb 13, 2014)

Never mind. Saw http://canadianmoneyforum.com/showthread.php/110514-T5008-and-TDB8150

On the topic of T5008 errors --

I was looking at my T5008s and was surprised to see a bunch of sales appearing -- I sold virtually nothing in 2016. Looking at the fine print, these are sales of TDB8150 and TDB8152 -- investment savings account units.
I suppose these forms are also sent to the CRA. Are they going to have the sense to realise that withdrawal from a savings account does not generate a capital gain? Why is TD including these on the tax documents. Don't they know how pig-headed the CRA is?


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## AltaRed (Jun 8, 2009)

Every brokerage to my knowledge includes MMF and ISA purchase and sales. I have never included them on my Scheduke 3 (over a number of years) and it's never been questioned. I suspect CRA computers are programmed accordingly.


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