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.
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:
- 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.
I hope this was helpful