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New Member
posted Oct 29, 2019 7:22:02 PM

Entering amount in box 42 on the T3 form (Return of Capital) and adjusting the ACB of REIT units by the return of capital amount. Is this correct.

I am entering box 42 on the T3 form (Return of Capital) but not sure what TurboTax does with this information.  When selling REIT units I am adjusting the ACB by the return of capital amount.  I would like to ensure that the Return of Capital is not being double counted.  What does TurboTax do with the amount entered in box 42 on the T3?  I assume that it is for reference purposes only.

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1 Best answer
Level 6
Oct 29, 2019 7:22:04 PM

This is correct. You use Return of Capital amounts to calculate ACB.
The amount in box 42 is reported as it is part of your distribution reported on the slip, but Turbotax does not include the amount as either income or a capital gain. It is simply reported.

3 Replies
Level 6
Oct 29, 2019 7:22:04 PM

This is correct. You use Return of Capital amounts to calculate ACB.
The amount in box 42 is reported as it is part of your distribution reported on the slip, but Turbotax does not include the amount as either income or a capital gain. It is simply reported.

Returning Member
Mar 30, 2023 11:19:34 AM

How to you report case 42 when the number is negative?

 

Thanks

Intuit Alumni
Apr 6, 2023 9:28:41 AM

If Box 42 has a negative amount, put it in brackets (00). 

 

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