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Level 1
posted Dec 22, 2020 1:22:48 PM

Foreign currency reporting - T5008

On CRA website:

Complete all T5008 slips in Canadian currency. Use the exchange rate that was in effect at the time of the transaction or an average rate that includes the transaction period.

Foreign currency is usually converted to Canadian funds before it is credited to the recipient's account. However, certain taxpayers keep foreign currency accounts and choose to convert their account balances themselves. If you get proceeds of disposition in a foreign currency and deposit the amounts to your client's foreign currency account without converting them to Canadian funds, you can report in the foreign currency that applies. Identify foreign currency amounts by entering in box 13 the applicable currency code under international standard ISO 4217.

 

Does this mean if I have  proceeds from sales of stocks are in US dollar as well, I don't need to convert to CDN currency when I enter T5008?

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1 Best answer
Level 6
Dec 23, 2020 8:33:26 AM

Hi, thank you for using Intuit TurboTax Community

All entries on the T1 tax return must be reported in Canadian dollars. Amount in a foreign currency must be converted to Canadian dollars before entry on the return

Hope this helps

8 Replies
Level 6
Dec 23, 2020 8:33:26 AM

Hi, thank you for using Intuit TurboTax Community

All entries on the T1 tax return must be reported in Canadian dollars. Amount in a foreign currency must be converted to Canadian dollars before entry on the return

Hope this helps

New Member
Mar 12, 2021 12:32:21 PM

You guys have been offering this product for a long time - I can't believe you haven't automated this.  It will take me more time to calculate the various CDN$ equivalencies of my stock transactions than it took me to complete the rest of my entire return in turbotax.  I thought this is what I was paying the extra for turbotax Premier for...  Very disappointed...

New Member
Mar 22, 2021 2:27:45 PM

I have 575 trades and I can't even export them to Excel to make this easier.... ridiculous...

Level 1
Mar 31, 2022 8:10:26 AM

I'm shocked to see the answer is a manual conversion to CDN$.

Totally agree, it's absurd that TurboTax does Not hav this atuomated.

New Member
Mar 24, 2023 7:52:50 PM

It’s impossible for Turbo Tax to do the conversion.  Turbo Tax has no idea what exchange rates the institution that bought or sold you the securities used to convert your C$ to US$.  The conversion should be done by the institution issuing the T5008 as they have all the information on the exchange rate when you bought the security and the exchange rate when you sold it.  They should not be allowed to issue T5008s in a currency other than C$.

 

Turbo Tax should have a caution in their software that they do not convert the funds when they download the T5008.

Level 1
Apr 13, 2023 3:54:08 AM

If a user can manually input an average Bank of Canada exchange rate or an individual T5008 transaction exchange rate to calculate the Canadian value, it's entirely possible for Turbotax to automate the calculation process.

 

Worse yet, the financial institution having filed the T5008 in a foreign currency as identified in box 13 but when Turbotax downloads the slips, box 13 is not even listed or identified on the Turbotax T5008 slips.

 

Turbotax has room for improvement. 

 

Moderator
Apr 17, 2023 3:44:46 PM

@taxnotes I have passed on your suggestion to our product development team. Thank you for your input.

Level 1
Apr 17, 2023 3:56:42 PM

@TurboTaxSusan  I hope they do implement the features for 2023, considering that competitors products already do it. I did try another product and it does save time, so there are alternatives out there if i have to switch next year.