The investment in stocks under HoldCo is fully sold out in 2025. The T5008 values of Cost and Proceeds are to be used in Schedule 6 part 1 to determine captial Gain. The problem is that actual Performance Summary report is issued by the broker ( Interactive Broker) shows higher Captial Gain as compared to when calculated using T5008. The real cash when converted from USD to CAD and transferred from Broker account to HoldCo bank account, is high, so that tells me the capital gain is higher than what’s showing in T5008
How do I report the difference?
Vipul
If the T5008 has the wrong gains, don’t use the T5008. T5008s do not determine the gain, they just report information. There is often additional information which can affect the actual gain calculation.
Since the investment is inside a corporation, with the entire portfolio being liquidated and converted into Canadian dollars, it should be much easier to calculate the actual gain.
The book value of the investment must have been carried on the balance sheet of the Holdco at its cost amount in Canadian Dollars (adjusted annually for any income distributions). The difference between what is on the books and what was deposited to the bank account upon liquidation would be the gain… regardless of what is reported on the “performance summary report”.
Perhaps the report didn’t take into account exchange rate at the time the foreign investments were purchased.
Thanks a lot. I used the actual $ from Performance Report for Capital Gain (USD->CAD) on Schedule 6 Part 1. And then after entering interest and dividends in S7, the left over gain i assumed as Forex Gain and put that in S7 under ‘other property income’.
If the foreign exchange gain results from a capital transaction, it is also a capital gain. Really it forms part of the calculation of the capital gain.