T5008 :When I enter an amount in box 20 of the T5008, I always get this message that the amount may or may not reflect the investor ACB. Where can I get this information? There is nothing in T5008 that would reflect that. I am sure the investor does not have a clue where to find that information.T3: The amount In box 42 (cost base adjustment ) .What is the relation of this number to the following boxes 49,50,21Help would be appreciated

L

Lucie Turcotte

Level 1

Question

T3 and T5008

Forum|Forum|2 years ago
March 15, 2024
1 reply
13 views

T5008 :When I enter an amount in box 20 of the T5008, I always get this message that the amount may or may not reflect the investor ACB. Where can I get this information? There is nothing in T5008 that would reflect that. I am sure the investor does not have a clue where to find that information.
T3: The amount In box 42 (cost base adjustment ) .What is the relation of this number to the following boxes 49,50,21

Help would be appreciated

ProFile (Canada)

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J

janisbossenberry

Level 7

If the brokerage has reported an ACB in box 20, you can assume it is correct. If the investor does not own the stocks/mutual funds through a brokerage (just hold on his own), then he/she is responsible for knowing the ACB of the investment. ACB is cost of initial purchase, less any required adjustments to the ACB. Box 42 on the T3 is one such adjustment. It represents a "return of capital" amount that was received by the investor. The distribution made by a mutual fund or trust (who have to report on a T3 slip) can be made up of a variety of types of income - dividends, investment income, foreign business income, return of capital are the most common. The return of capital amount Box 42) is not taxable - it instead reduces the ACB of the investment, which increases the subsequent capital gain upon eventual disposition.

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