I have entered all the T5008s on a return that also match the AFR, most are in USD, but on schedule 3 is doesn’t account for the exchange although I have chosen USD on each slip. Am I doing something wrong? Thanks fellow Taxcycle users.
T5008s are all over the map it seems. Some report in “converted dollars” (ie CDN equivalent), some only in US, some report the disposition value as US on date-of-trade but the ACB - especially if prior year - may or may not match the T5008.
There is apparently NO standardization and it would appear that CRA has issued no guidelines.
I generally enter from the actual brokerage’s report, matching the $US (or other foreign) to the trade amount reported to ensure I have all the trades. But yah, it’s getting to be a pain.
Oh - and then there’s the T5008s that report ONLY the disposal value and have no ACB…
I’d be curious as to what others are doing.
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“and it would appear that CRA has issued no guidelines.”
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Yes they have. See T4091 Chapter 5
"Foreign currency reporting
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."
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There is no requirement for the T5008 to report the ACB. However, there is a requirement to report the cost or book value.
Regardless, it is the taxpayer’s responsibility to keep proper investment records, including proper ACB tracking, including appropriate fx rates at the time… The effectiveness of strategies/sources may differ for different clients.
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Well then there are a LOT of providers not following the guidelines!! So far all my TD T5008s are in USD, not CAD. Odlum Brown’s are all converted. Scotia’s were converted. Can’t think of others offhand, but I know a bunch of them were in USD (all one-off providers to clients).
I have created a spreadsheet for the USD transactions. We use the exchange rate (per the Bank of Canada) for both the purchase and sale dates. On S3 we enter the bottom line as 1 trade (referencing our spreadsheet) and delete all the T5008’s that were uploaded. That seemed the most efficient and accurate method.
That works well unitl the client changes brokerages, buys and sells parts of the same holdings, etc. The provision of the T5008 info as individual items is highly annoying for foreign securities. Works not too badly for (some) Canadian ones. Ah well, sooner or later they all pay!!
I tend to do much the same - it’s way easier to work in Excel than in TC!!