T3 (Box 21) very large Capital Gains amount vs. T5008

[mike-pettit99]

Note: I have my own Investment Account & pay per trade(s)

PROBLEM:

One of my T3's (Box 21) is for Milestone Apartments REIT showing a very large Capital Gain [>$20,000] 

Note: The company merged & went private in May 2017 - de-listing from Toronto Stock Exchange.

One of my T5008's is for Milestone Apartments REIT showing the number of units (shares) that were sold, as well as the 'proceeds from disposition' auto-filled.   I am to enter the Adjusted Cost and it would then transfer the Capital Gain (or Loss) to Schedule 3. 

The problem is that both Capital Gain amounts from the T3 (Box 21) & T5008 are sent to Schedule 3 (Section 3 & Line 176), resulting in a massive Capital Gains amount.   

The Capital Gains amounts are different between the T3 and T5008 (based on my spreadsheet adjusted cost (factoring in return of capital over the years etc.).  Thus I am learning towards deleting the T5008 form and go with the T3 - Box 21.  Simply because it seems as though almost the same Capital Gains are being registered twice. 

Could someone advise what to do in this situation?

There is no way that my Capital Gains for this transaction were double my expected amount.  

[TurboTaxJared]

Chances are that many investors of Milestone Apartments REIT are in the same position as you and have two slips with possibly duplicate reporting of capital gains. In this situation, it is best to contact Milestone Apartments REIT to determine if there is any overlap between the T3 and the T5008 and based on what you find out, determine what would be the right course of action. 

As far as T3 Box 21 is concerned, note that it is the trust’s total capital gain. The difference between this amount and the amount in Box 30 gets reported on Line 176 of Schedule 3. As for T5008, don't forget to report your ACB (adjusted cost base) and Outlays and Expenses.

[mike-pettit99]

That's precisely the problem.  

-If I input my adjusted cost base into the T5008, the resulting Capital Gain (Proceeds less ACB) will go to Schedule 3.
(Note: there is no Outlays/Expenses - this was a Merger - not of my doing at all)

-The T3 Capital Gain will also get sent to the Schedule 3.  

-What I'm telling you is that the amounts are very close to each other (well over $20,000).  
-If I report both - I get taxed 2x for the same transaction.

I'm not sure how much more clear I can explain this, but that's the situation.

The problem remains - double taxation.

[TurboTaxJared]

If the T5008 and the T3 are for the exact same transaction and you are able to prove this to CRA if/when you get audited, then you can choose to report only one of the slips. If the T3 is dated later than the T5008, that's one reason to choose the T3 over the T5008. But you must contact the CRA and find out what slips they have for you before choosing any course of action. If you are unable to get through to CRA over the phone, access your My Account and check if CRA has both the T5008 and the T3. If CRA has both slips but you submit only one slip, it will be at variance with what CRA has and will come up for review. So you can choose to only submit the slip that CRA also has.

Then what about the slip that CRA doesn't have and you are not reporting either? What if it is a legitimate slip and it does capture gains that aren't captured in the other slip? The best course is to contact the issuer of the T3 to find out what's going on.

For now, you can file both slips and pay any taxes that you might owe and then file an adjustment (T1-ADJ) later after you have sorted everything out to get a refund back.

[mike-pettit99]

Thank-you for you additional help.
I just checked the CRA My Account - they have both T3 & T5008 on file, with the T3 being slightly newer by 2 months.

All I can do to prove my case is show them my Financial institution records for the entire year, to see that only 1 (forced disposition) transaction occurred.   

I actually called a number in Toronto that was related to the Milestone REIT merger (occurred in May 2017), who directed me to a number in Dallas,Tx..  I left a voice message and didn't hear back.   It's Friday after all, but it would be nice to hear an explanation.