I have a T5 and a T5008 do they both need to be entered? I am not sure what the difference is.

The T5008 and T5 you were issued may relate to the same investments but both need to be entered as separate slips. The T5008 relates to dispositions of securities held in this investment, and the T5 relates to interest, dividends and other "investment income" earned on that investment.

On the T5008 slip, you need to enter a figure in Box 20. This would be the cost of the fund or Adjusted Cost Base (ACB) and if you do not enter it, you will be paying Capital Gains on that entire amount shown in Box 21. 

thank you where do I find Box 20 and 21? they are not on the T5008

If you have received a T5008 Summary (no box numbers), you can enter this by going to Income > Investments > Capital Gains & Capital Gains Deduction Profile. Then check off the box "Sold stocks, bonds, real estate ,etc ", and continue to the Capital Gains page to make your entries.

I have same issue, but additional question based on your answer.  I have a T5 that was accompanied by a T5008.  However, the T5 includes, as Foreign Income, the total value of the stock plus other dividends paid throughout the year.  If I enter the T5 and T5008 and nothing else, essentially, I am asked to pay tax (as income) the entire amount listed as Foreign Income in the T5.  Where do I enter the offsetting 'book cost' that is not on the T5 form?

 

Ex: I sold $10,000 in US stock as listed on my T5008 slip.  The book cost was $8,000, so the gain was $2,000.  If I enter only the T5008, this comes through clear.  However, I was also given a T5 slip that lists in Box 15, my Foreign Income as $11,000, which includes the $10,000 in US stock sale referenced above in the T5008 plus $1,000 in dividends that were paid throughout the year?  Where do I enter the $8,000 cost to offset the T5?  I phoned the Institution and they did confirm that the Foreign Income in Box 15 does indeed include the sale of the $10,000 US stock.  It seems to me, it should not include this amount as it was a sale of assets and not income, however apparently the big banks simply list this lumped in as income.

T5 and T5008 are separate slips. If they don't include the proper information, then the issuer of these slip should amend them, but you should not manually change any values on these slips unless you are filling missing boxes:

 

- Fill T5 slip as is: this slip should include, foreign income, capital gain values, and dividends:

• If Box 15 has a value, it could be a foreign dividend or a foreign interest --> you need to confirm with your financial broker
• You will need to fill Box 16 for the foreign tax deducted associated with Box 15 (some taxpayer pay $0.00).
• Capital gain is reported in Box 18 and it should be different from T5008 because you should not be taxed twice. 

 

- T5008: Box 21 has the sale value of the stocks as a capital gain or has an investment. You will need to fill Box 20 with the cost value manually if the slip sent to CRA doesn't have this value already filled. 

• You should have $10,000 in Box 21, and Box $ 8000
• This should give you a cap-gain of $2000
• This does not include the income you made throughout the year from any dividends you made from these stocks which will be reported in the T5

I hope this was helpful

 

 

Thank you for the response.  In addition to your advice and some more googling, I think the T5 is incorrect.

 

Thanks again.

I recommend you go back to your financial broker to amend your T5. 

 

You are very welcome