I just realized TaxCycle no longer automatically updates the currency field (which results in an exchange rate being applied) when box 13 is auto imported from CRA with a type of foreign currency for T5008s. For example, in the past when the share sale was reported in USD currency the average USD rate would be automatically selected and applied. Not sure why it changed but being used to not having to change it manually I unfortunately missed it. A heads up for others with the share sales in foreign currency.
Does the currency field get populated on the T5008? We have not made a conscious change here… what I see is the same as last year’s approach.
If you are comfortable with it, you could e-courier us a file and we could investigate further. There may be a change in the way the CRA provided the data in this case.
Hi Cameron,
I’d be happy to help you investigate further as I figured TaxCycle would be keen to improve user experience (as you always do and the primary reason why I love and rave about TaxCycle). I did send a couple emails to TaxCycle today as well. What is the best way to connect with you/someone else at TaxCycle to better understand what information you want from me?
Kind regards
I have noticed that some T5008’s get downloaded from CRA with the foreign currency field completed with USD. Converting to Cdn$ using the 2019 average US$ exchange might be fine for the proceeds but the ACB can’t automatically be converted using the 2019 average exchange because the ACB in Cdn$ depends on the exchange rate in the year the investment was purchased.
In these cases I have seen, the investment brokers provide the ACB and proceeds in Cdn$ so I use those figures and change the “Foreign Currency” field on the T5008 to CAD.
There is a field for ‘exchange rate for cost (if different than above)’ which allows for different exchange rates to be applied to each. You are correct in that some financial institutions convert it to CDN funds before reporting but all do not. Questrade for example is reported and imported in box 13 as USD and the cost and proceeds are in fact the USD figures.
Unfortunately with some clients I have difficulty obtaining historical documents and so am not able to determine the year of purchase. In those situations I resort to the current year average, which at least in 2018 was imported by default via AFR.
“Unfortunately with some clients I have difficulty obtaining historical documents and so am not able to determine the year of purchase. In those situations I resort to the current year average,”
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Hmmm -
since using that method would have resulted in an error of greater than $20,000 in a file I just finished, I am failing to see what advantage that method has over the old “throw a dart at the dartboard” method.
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I would humbly suggest that it would be far better to calculate Capital Gains in the manner specified in the actual Income Tax Act…
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It would be a mistake of logic (and law) to conflate and confuse one thing (a T5008) with another quite different thing (A Realized Gain/Loss calculation, based on tax rules).
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Because it was material in your situation doesn’t make it the case for all situations. In some situations when obtaining historical information is difficult I use my judgment and move forward. I’m not dealing with large transactions.
I’m afraid I don’t agree with you on one point. Your suggestions/comments are certainly not humble. You seem to have a good knowledge of income tax preparation. I encourage you to share your wisdom more kindly.
For more precise wording, and not to cause offence, I will rephrase to simply quote someone else’s wording instead, as it is what I use as a reference:
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• "47 (1) Where at any particular time after 1971 a taxpayer who owns one property that was or two or more identical properties each of which was, as the case may be, acquired by the taxpayer after 1971, acquires one or more other properties (in this subsection referred to as “newly-acquired properties”) each of which is identical to each such previously-acquired property, for the purposes of computing, at any subsequent time, the adjusted cost base of the taxpayer of each such identical property,
o (a) the taxpayer shall be deemed to have disposed of each such previously-acquired property immediately before the particular time for proceeds equal to its adjusted cost base to the taxpayer immediately before the particular time;
o (b) the taxpayer shall be deemed to have acquired the identical property at the particular time at a cost equal to the quotient obtained when
(i) the total of the adjusted cost bases to the taxpayer immediately before the particular time of the previously-acquired properties, and the cost to the taxpayer (determined without reference to this section) of the newly-acquired properties
is divided by
(ii) the number of the identical properties owned by the taxpayer immediately after the particular time;
o © there shall be deducted, after the particular time, in computing the adjusted cost base to the taxpayer of each such identical property, the amount determined by the formula
A/B
where
A
is the total of all amounts deducted under paragraph 53(2)(g.1) in computing immediately before the particular time the adjusted cost base to the taxpayer of the previously-acquired properties, and
B
is the number of such identical properties owned by the taxpayer immediately after the particular time or, where subsection 47(2) applies, the quotient determined under that subsection in respect of the acquisition; and
o (d) there shall be added, after the particular time, in computing the adjusted cost base to the taxpayer of each such identical property the amount determined under paragraph 47(1)© in respect of the identical property.
*o *
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(2) For the purposes of subsection 47(1), where a group of identical properties referred to in that subsection is a group of identical bonds, debentures, bills, notes or similar obligations issued by a debtor, subparagraph 47(1)(b)(ii) shall be read as follows:
o “(ii) the quotient obtained when the total of the principal amounts of all such identical properties owned by the taxpayer immediately after the particular time is divided by the principal amount of the identical property.”
*• *
(3) For the purpose of subsection (1), a security (within the meaning assigned by subsection 7(7)) acquired by a taxpayer after February 27, 2000 is deemed not to be identical to any other security acquired by the taxpayer if
o (a) the security is acquired in circumstances to which any of subsections 7(1.1), (1.5) or (8) or 147(10.1) applies; or
o (b) the security is a security to which subsection 7(1.31) applies"
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Does anyone know if you can write off any expenses related to maintaining a secondary residence. My client and his wife rent a home in Victoria, BC, the husband then rented a home in Vancouver, BC to start a new job. I know he can no longer claim commuter costs as of July 2017, but can he claim anything else.? Its over 40 Km so he could claim moving expenses, ( as he did start a new job ) but he still lived at the other house in Victoria with his wife? Any suggestions?
“Does anyone know if you can write off any expenses related to maintaining a secondary residence. My client and his wife rent a home in Victoria, BC, the husband then rented a home in Vancouver, BC to start a new job. I know he can no longer claim commuter costs as of July 2017, but can he claim anything else.? Its over 40 Km so he could claim moving expenses, ( as he did start a new job ) but he still lived at the other house in Victoria with his wife? Any suggestions?”
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This thread is related to T5008s
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Perhaps you can consider starting a new thread with your new different question (in the appropriate category) so that everyone on this thread does not get alerts about a completely different topic.
Thank you
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oops. sorry, please disregard ( thanks Joe for letting me know of my mistake )