Withdrew fund (principle) from non-RSP -question on T5008

Income tax policy, rules, problems, strategy and software. Property and consumption taxes too.
Post Reply
vmlp
Newcomer
Newcomer
Posts: 2
Joined: 06 Feb 2018 12:35

Withdrew fund (principle) from non-RSP -question on T5008

Post by vmlp » 06 Feb 2018 12:49

Hello All,

Newbie here, I had some cash ($1500) seating in chequing account, I invested in non-RSP (existing account since 2 years with about 20K invested) in may 2017, I withdrew ($1491) that amount before end of year while keeping the earning of it invested.

For tax filing, I need to report the amount posted on T5008, How I claim that I took my principle amount out?

Please let me know.

Thanks,
Vmlp

User avatar
Peculiar_Investor
Gold Ring
Gold Ring
Posts: 7315
Joined: 01 Mar 2005 14:52
Location: Calgary
Contact:

Re: Withdrew fund (principle) from non-RSP -question on T5008

Post by Peculiar_Investor » 06 Feb 2018 18:10

Welcome to FWF.

A Return of Securities Transactions (T5008) just reports your securities transactions and is needed to report the gains and losses you incurred in disposing of securities.

Here is a A simple guide to your Trading Summary (T5008) | TD Bank that might also be helpful to understand the fields and what they mean.
vmlp wrote:
06 Feb 2018 12:49
in may 2017, I withdrew ($1491) that amount before end of year while keeping the earning of it invested.

For tax filing, I need to report the amount posted on T5008, How I claim that I took my principle amount out?
Are you using tax preparation software for your tax filing? If so, the tax filing software should guide you on what information is required from the T5008 to prepare your return. If you are not using tax preparation software (or an accountant), then I would strongly advise doing so, it generally makes tax filing much easier and eliminates mistakes.
Imagefiniki, the Canadian financial wiki New editors wanted and welcomed, please help collaborate and improve the wiki.

Normal people… believe that if it ain’t broke, don’t fix it. Engineers believe that if it ain’t broke, it doesn’t have enough features yet. – Scott Adams

User avatar
DavidR
Gold Ring
Gold Ring
Posts: 1619
Joined: 30 Oct 2005 08:33
Location: Toronto

Re: Withdrew fund (principle) from non-RSP -question on T5008

Post by DavidR » 07 Feb 2018 14:08

vmlp wrote:
06 Feb 2018 12:49
...Newbie here, I had some cash ($1500) seating in chequing account, I invested in non-RSP (existing account since 2 years with about 20K invested) in may 2017, I withdrew ($1491) that amount before end of year while keeping the earning of it invested.

For tax filing, I need to report the amount posted on T5008, How I claim that I took my principle amount out?
If you invested the $1,500 in a stock or ETF or mutual fund, you can't 'withdraw' your principal only.
Here is a simple example: Invest $1,500. Investment increases in value to $3,000. Then take $1,500 out.

In order to take $1,500 out of your broker account you would have had to sell half of your investment. Your $1,500 withdrawal is $750 capital gain and $750 your own money. This will be report on tax return as "proceeds of sale" $1,500. Adjusted cost base $750. Capital gain $750

OptsyEagle
Silver Ring
Silver Ring
Posts: 361
Joined: 25 Feb 2007 18:59

Re: Withdrew fund (principle) from non-RSP -question on T5008

Post by OptsyEagle » 08 Feb 2018 12:06

But you didn't withdraw your principle. You withdrew a prorated combination of principle and growth as should be outlined on your T5008.

User avatar
adrian2
Diamond Ring
Diamond Ring
Posts: 11669
Joined: 19 Feb 2005 08:42
Location: Greater Toronto Area

Re: Withdrew fund (principle) from non-RSP -question on T5008

Post by adrian2 » 08 Feb 2018 12:47

Principal vs. Principle wrote:If you find yourself having trouble choosing between principal and principle, think about the context. Use principal in reference to a person who is in leadership or to describe the importance of something; use principle to refer to a standard, rule, or guiding belief. One popular mnemonic device to remember this difference is the isolation of “pal” from principal. The principal of your school is your “pal.”
Imagefiniki, the Canadian financial wiki
“It doesn't matter how beautiful your theory is, it doesn't matter how smart you are. If it doesn't agree with experiment, it's wrong.” [Richard P. Feynman, Nobel prize winner]

pmj
Gold Ring
Gold Ring
Posts: 2445
Joined: 27 Feb 2005 18:15
Location: Ottawa

Re: Withdrew fund (principle) from non-RSP -question on T5008

Post by pmj » 08 Feb 2018 12:53

adrian2 wrote:
08 Feb 2018 12:47
Principal vs. Principle wrote:If you find yourself having trouble choosing between principal and principle, think about the context. Use principal in reference to a person who is in leadership or to describe the importance of something; use principle to refer to a standard, rule, or guiding belief. One popular mnemonic device to remember this difference is the isolation of “pal” from principal. The principal of your school is your “pal.”
:thumbsup:
Peter

Patrick Hutber: Improvement means deterioration

vmlp
Newcomer
Newcomer
Posts: 2
Joined: 06 Feb 2018 12:35

Re: Withdrew fund (principle) from non-RSP -question on T5008

Post by vmlp » 13 Feb 2018 03:01

Thanks All for your responses, I understood it now.
I am going to use a tax software as I been doing for last few years.

Thanks again for your great advises / tips.

-Vmlp

User avatar
Peculiar_Investor
Gold Ring
Gold Ring
Posts: 7315
Joined: 01 Mar 2005 14:52
Location: Calgary
Contact:

Re: Withdrew fund (principle) from non-RSP -question on T5008

Post by Peculiar_Investor » 13 Feb 2018 09:10

Thanks to the OP for coming back and providing an update. As other issues/questions arise, hopefully you'll post them.
Imagefiniki, the Canadian financial wiki New editors wanted and welcomed, please help collaborate and improve the wiki.

Normal people… believe that if it ain’t broke, don’t fix it. Engineers believe that if it ain’t broke, it doesn’t have enough features yet. – Scott Adams

Post Reply