T1212 versus T5008

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Emerson7
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T1212 versus T5008

Post by Emerson7 »

Capital gain from the sale of deferred shares (previously purchased share options) has to be reported on T1212 (which fills in line 101 of the return).
CRA download of data had a T5008 entry that incorporated the same information which creates a double entry for this capital gain.
What should one do?
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DavidR
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Re: T1212 versus T5008

Post by DavidR »

T1212 is the taxable benefit from exercising the stock option.
Not the same thing at all as the capital gain or loss from selling the shares.
> Better get thee to an accountant, or to someone in your employer's HR or acctg office
SQRT
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Re: T1212 versus T5008

Post by SQRT »

For me a more interesting question is how you decide which shares the employee option deferral relates to. Assume I have some shares received through option exercises (deferral of gains) and more shares purchased for cash (same company). At some point in the future I sell some. I have been assuming that as long as I still have enough shares to cover the deferral shares, there is no realization of the deferral? Sound reasonable?
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kcowan
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Re: T1212 versus T5008

Post by kcowan »

As long as the deferral shares are still not registered to you, yes.
Once they get registered, they enter your ACB.
For the fun of it...Keith
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Re: T1212 versus T5008

Post by SQRT »

kcowan wrote: 20 Apr 2017 10:05 As long as the deferral shares are still not registered to you, yes.
Once they get registered, they enter your ACB.
Once exercised, the shares are registered in my name. That is the event that caused the deferral. These shares enter into my ACB at fair market value when exercised. But as long as I don't sell any shares, the deferral continues. My issue arises when I sell some shares. ACB is easy to calculate but the deferral seems more complicated. All references I have seen don't address the deferral drawdown mechanics. Ie averaged over all shares, or somehow assigned to specific shares, ie the last ones I sell?
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