# T5008 / RL-18 Slip - Question?



## jargey3000 (Jan 25, 2011)

I rec'd this slip for 2016. I cashed in a few $ from a MM Fund I hold, in a non-registered acct. -$160, shown under Box 21- "Proceeds of disposition or settlement amt"
Do I have to put this amt on my tax return? If so -where? 

Thanks.


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## Parkuser (Mar 12, 2014)

Try Schedule 3 Table 3 Publicly traded shares, mutual fund units,...


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## OnlyMyOpinion (Sep 1, 2013)

By MM do you mean money market? There is no capital gain or loss associated with those or high interest savings type funds - only interest. So you don't report on sched 3. Any interest it paid should already be found on a T5 slip box 13?


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## jargey3000 (Jan 25, 2011)

Yes, a Money Market fund. I dont get interest, I "drip" more units. I sold 16 units for $160 ($10/unit)
I'm thinking it's treated as a capital gain? Trying to figure out my ACB on these...arrrrrggggh!!!


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## AltaRed (Jun 8, 2009)

jargey3000 said:


> Yes, a Money Market fund. I dont get interest, I "drip" more units. I sold 16 units for $160 ($10/unit)
> I'm thinking it's treated as a capital gain? Trying to figure out my ACB on these...arrrrrggggh!!!


Yes, you do get interest (other income). Every time you get a re-invested distribution, that distribution is income for the year and is shown on a T3 every year. You are paying taxes on that income.

On the capital gains side, you are buying new units at $10, exactly the same as all your other units.... and your ACB stays at $10/unit. You then sell 16 units @ $10... Exactly the same price you paid for them. There is no capital gain.

Added example:

Original investment = $10,000 for 1000 units. ACB = $10,000 or $10/unit
Along comes a re-invested distribution of $500....which is used to buy 50 units @ $10.
New ACB value = $10,500, or $10/unit on 1050 units

Sell 16 units @ $10 = $160
New ACB = $10,340, or $10/unit on 1034 remaining units

Capital gains = 16 ($10-$10) = 0

No need to report sales of fixed unit prices on Schedule 3, e.g. whether they are MMF or HISA or GIC units.


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## jargey3000 (Jan 25, 2011)

that's what i was thinking..
thanks red.
so...do i do nothing with the form? or should i show the zero cap gains on schedule 3?


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## AltaRed (Jun 8, 2009)

jargey3000 said:


> that's what i was thinking..
> thanks red.
> so...do i do nothing with the form? or should i show the zero cap gains on schedule 3?


I have never entered 'fixed price' transactions on Schedule 3... and by fixed price, I mean disposition of MMFs, GICs, HISA accounts, etc. CRA knows there are no cap gains/losses in these. I've never been questioned. If you feel better including it... then do it.

P.S. The above does not apply to USD denominated MMFs, etc. since there will be cap gains or losses due to forex changes.


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## jargey3000 (Jan 25, 2011)

thanks again. I'll leave it out....see if they come after me :mad-new:


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